Zhongpin Shares Plunged: What You Need to Know

• Report this Comment On November 16, 2010, at 3:31 PM, Gonzhouse wrote:

  If you are looking at getting a small cap Chinese play on food/agriculture, try Yongye (YONG), a organic crop nutrients and animal feed supplements manufacturer, instead. They have a Big 4 auditor, most of their large cap expense is behind them, and their primary ingredient for the fertilizer is lignite coal, which is not subject to the wild speculations of grain and YONG owns their own lignite coal mine.

• Report this Comment On November 16, 2010, at 3:39 PM, IvanovVano wrote:

  I hope that the comment is right, he, Travis! Because I doubled my position in Zhongpin!!! Arf!

• Report this Comment On November 16, 2010, at 3:44 PM, 153fish wrote:

  <Zhongpin (Nasdaq: HOGS) shares fell 11% during trading today after the company announced it will be expanding operations.>

  This planned expansion was detailed in the last 10-Q that was filed on 11/19. So how is it that it was announced today? If there is a reason for today's sell off, I would think it is related to the announced plan for price controls to fight inflation, not to expanded capacity information that has been known for some time now.

• Report this Comment On November 17, 2010, at 10:00 AM, jimydigriz wrote:

  153fish is right on the money and has obviously been paying attention. not only has the cost and extent of this expansion been posted in the 10-q but in numerous news releases. it is old news and hardly a secret. there is obviously more going on. it is almost certainly related to beijing's interest rate and reserve requirement hikes. i would also suspect that the recent flooding last july (the worst in a decade) in the yellow river valley in henan province (where zhongpin is based) and that fiasco in ireland and greece aren't helping. i got out at 22.17 and am staying out until things settle down.

• Report this Comment On November 17, 2010, at 2:46 PM, lef39 wrote:

  http://www.nytimes.com/2010/11/18/world/asia/18china.html?_r...

• Report this Comment On November 17, 2010, at 4:26 PM, jimydigriz wrote:

  re; lef39 post, looks like another nail in zhongpin's coffin.

  on the upside however, great news for yongye (see gonzhous 11/16 post). chinese farmers will be looking for ways to increase their yield in the face of food shortages and price controls.

• Report this Comment On November 18, 2010, at 1:01 AM, jlanganki wrote:

  Why can't YONG manage to pull in any cash? Without doing much digging, why did their accounts receivable drop by $37 million at the end of 2009, but they only recorded a $2 million change in working capital? Their inventory and "other assets" increased by about $18 million. Where did the other $17 million go? Bad debt? I'm not a CPA, but this doesn't make sense to me.

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