March 29th, 2009
OUR TOP ASIAN STOCK PICK REMAINS ASIA PACIFIC WIRE & CABLE CORP (AWRCF.OB).
WE HAVE NOT BEEN PAID BY ANY OF THE LISTED INVESTMENTS WITHIN THIS EMAIL ALERT. WE MAY BUY, SELL AND OR HOLD POSITIONS AT OUR OWN DISCRETION.
WE ARE ALSO FEATURING 2 OTHER ATTRACTIVELY PRICED INVESTMENTS- FEED & TBV
Is the recent strength in the market just a "dead cat bounce" or a baby "spring" BULL emerging from the carnage ?
We are currently seeing signs of recovery, but they may be false signals- only time will tell!!
Stock are so beaten down it would be foolish to sit on the sideline and think that they can continue to cascade towards Zero!
We believe that if Mr. G's plan works then maybe credit will loosen up and the art of commerce will strengthen. We also need the M2M rule modified & the "uptick" rule re-instated so the "shorts" are somewhat controlled. Any recovery would be quicker, but we believe because of Obama's socialist view and actual distaste for Capitalism that it may be muted and because of this opportunities in other countries may offer investors a bigger bang for the BUCK!
AWRCF.OB ($1.24) is a leading manufacturer of wire and cable products for the Telco & Power Industries in Thailand, China, Australia and Singapore.
We first recommended awrcf.ob at around $.95 on June 30th 2006- ( review past email alert for initial recommendation- there have been many updated recommendations). During 2006 awrcf.ob was still listed on the "pinks' & rev was around $337 million vs for 2008 the rev reached $500 million slightly below 2007 rev of $510 million ( see March 11th filing for this actual rev number for 2008).
NOTE: YEAR END RESULTS FOR 2005 WAS $337 MILLION-- WHEN WE RECOMMENDED AWRCF.OB DURING JUNE 2006 WE DID NOT HAVE ANY OTHER RESULTS.
AWRCF.OB had planned and is still planning to list its shares on a major exchange, but because of the global meltdown the share price retreated to levels that did not allow for specific listing requirements. We believe that once the global economy recovers that awrcf.ob will proceed with listing on the amex, nyse or the nasdaq.
At present there are only 13.8 million shares fully diluted and outstanding. Management owns 7.6 million and Michael Dell via SOF owns 2.7 million and the balance is free trading. You may recall that SOF purchased the shares from an entity during August 2007 at $4.12/sh and had a "put" in place that if the stock was not listed on a major exchange by Jan 31, 2009 that SOF could "put" the 2.7 million shares back to the company at the original purchase price. The 60 day 'cure" date is April 2, 2009- according to the documents (March 11th 2009) SOF & AWRCF.OB are discussing a proposal that awrcf.ob buy back 49% of the 2.7 million share and restrict the balance. At present nothing has been announced and actually it has little meaning on the company's future growth and development. Presently awrcf.ob has a $148 million unused line of credit and $38 million in the bank.. The current book value is around $10.00/sh and we believe that the additional value of all properties that awrcf.ob owns that the BK might be closer to $13+/sh! Rev for 06 ($468 million and net .94) for 07 ($510 million and net .35) for 6 months ending June 30th 2008 rev ($274 million and net of .13) and as mentioned in the March 11th 2009 filing that rev for the second half ending Dec 31st 2008 rev was around $234 million. At present we do not know the earnings picture for 2008 because they have not released the net income or net loss for the second half of 08. The gross profit for that time period fell to $16.1 million vs $20.4 million for the first half of 08. In our opinion, the company earned money in 08 from operations, but may show a loss because of write-downs.
This of course is all history! We buy stocks based upon future growth and expansion.
Governments in certain countries, such as China, Thailand & Australia have pledged to increase infrastructure and construction spending to boost or maintain economic growth. Assuming those pledges are acted upon, those developments will likely have a very favorable impact on sales of AWRCF.OB's products!! ( mentioned by management within document dated March 11th 2009 filed with the SEC).
Upon review of the trading history of awrcf.ob it is interesting to note that from 2003 to present that this company's shares every year have a range of $3-$4. Every time the stock gets to this super cheap level the shares appreciate dramatically!
We have a stock that is trading at around $1.25 with a book value of $10-$13/sh, $2.75 in cash/sh, a PSR of .03 and business operations in countries that will far exceed our growth prospects. We don't believe that the USA will show much growth at all this year, but in Asia growth esp. China and Thailand 6-8% is very doable! The whole market-cap of AWRCF.OB is only around $15 million while rev for 2008 only slipped from $510 to $500 million, while the rest of the world was falling off a steep cliff! YOU MUST OWN AWRCF.OB--BY FAR THE CHEAPEST ASIAN STOCK OUT THERE!
website: www.apwcc.com very good site
We believe that awrcf.ob will list this year on major exchange and in a recovering economy world-wide that the share price of awrcf.ob has the easy potential to reach $5-$6 during 2009!
TIENS BIOTECH GROUP USA (TBV $1.55)-BUY RATING
The company produces wellness products, which include dietary supplements, powders, tea, capsules, tablets, granules and soft gel capsules. The company operates in China, Indonesia, Russia, Ukraine, Kazakhstan, Congo, Hungry, South Africa, India and Columbia.
At present 71 million shares outstanding
Cash in the bank---$41.6 million
Book value around $143 million-- or $2.00/sh --if you sub out the $15 million intangibles then the BK is around $1.80/sh
Long term debt is around $5 million
Rev for the 9 months ending Sept 30th--for 08 & 07 $58.6 million vs $41.6 million, while net income/sh was .32 vs .20
We anticipate year-end numbers out soon and believe that rev for 08 will reach $85-$90 million and net income/sh will reach .50+ based upon the 71 million shares fully diluted and outstanding.
At the current share price of $1.55 and EST. trailing earnings of .50 for 08 that a PE value of 3X is super cheap and should be bought at current levels for superior growth potential long term. As the developing nations become more developed dietary supplements and other wellness products will only grow in usage. TBV with its worldwide exposure to growth offers investors a unique opportunity at ground floor level! Pop a vitamin C and hop onboard!
We rate TBV with a strong buy recommendation at current levels--be nimble!!
AGFEED INDUSTRIES, INC. (FEED $2.58)
The company raises, breeds & sells hogs for use in China. The company is the largest commercial hog producer and largest feed company in China.
Rev has gone hog wild during the past 3 years and this 'little piggy' has really gone to market!
Rev for 2006, 2007 and 2008 have been 8.5 million, 36.1 & $143 million for 2008. Earnings using GAAP has also ramped from .07 for 2006, .25 for 2007 and .53 for 2008. At the end of 2008 there were 31.5 million shares outstanding.
The BK is around $119 million and if you sub out the intangibles of $43 million- you are left with a more conservative value of $76 million or around $2.41
The street has estimates of $175 million and .41 net for 2009. We believe that this number will be upgraded because maybe "pigs can really fly"!
China is the world's largest hog producing country that produces 600 million pigs/yr compared to the USA that produces 100 million!
One of the most bullish as well as piggish angles of investing in FEED is that HOG production in China enjoys income tax free status! Obama are you listening! Communist China acting more Capitalistic than the USA!
FEED is still trading near its 52 wk low and is still almost 90% off from the 52 wk high of $21.31!
FEED ALSO HAS $25 MILLION IN CASH & ONLY $16 MILLION IN TOTAL DEBT
AS THEY SAY, " BULLS AND BEARS MAKE MONEY AND PIGS GET SLAUGHTERED---WE WANT AS MAY PIG TO GET THE AX AS POSSIBLE--SORRY PETA OR THE VEGANS ! <BR.
WE RATE FEED WITH A HUNGRY BUY RECOMMENDATION AT CURRENT LEVELS FOR LONG TERM AND SHORT TERM APPRECIATION- OINK! OINK!
AS MENTIONED: WE ARE OFFERING AN INVESTMENT FOR $300.00 FOR ALL SUBSCRIBERS- THIS INVESTMENT WILL NOT BE MADE PUBLIC AND IS ONLY FOR PAYING SUBSCRIBERS
WE HAVE AN INVESTMENT THAT IS CURRENTLY PAYING A $2.00 INTEREST PAYMENT OR .50/Q- THE PRINCIPLE IS AROUND $5.50.. THIS EXOTIC INVESTMENT VEHICLE DOES NOT MATURE UNTIL 2031--SO BUYING 1000 SHARES OF THIS EXOTIC WOULD BE WORTH JUST IN INTEREST $44K AND THE PAR VALUE OF THIS VEHICLE IS $25.00 AT MATURITY, WHICH WOULD YIELD ANOTHER $19.5K!
FOR A $5500 INVESTMENT THE RETURN IS POTENTIALLY $64,000.00--THE INVESTMENT COULD BE CALLED EARLY BUT WE BELIEVE NOT FOR SOME TIME-- NEXT INTEREST PAYMENT IS MAY 15TH FOR SHAREHOLDERS OF RECORD ENDING IN APRIL 2009---FOR THE NAME OF THE GAME CALL US AT 801 272 4761
FROM OUT LAST EMAIL ALERT: MIC, GBX AND MTW APPRECIATED NICELY
FAS--XXX FINANCIAL-- IS A WILD RIDE - SHOULD HOLD A POSITION- FINANCIAL STOCKS HAVE UPSIDE LEFT
DISK-- THE TAKEOVER GAME CONTINUES- YOUR GUESS IS MY GUESS! WOULD NOT SELL- BELIEVE THAT THIS DEAL GETS DONE-- GREAT REWARD -- CURRENTLY THE STOCK IS $1.26 TAKEOUT--$2.75 .
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FOR MORE INFORMATION CALL 801 272 4761
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