Opinions

Gerald Allaye-Chan Migao Corp. MGO-T TOP PICK May 29, 2009

Specialty potash/fertilizer products company that is based out of China. Have 4 facilities in China now with three facilities under construction. Trading at about 8.5X earnings. Debt-free. Excellent play on both agricultural markets and the growing China market.

Gerald Allaye-Chan

Owned

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$8.080

Stock price when the opinion was issued

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BUY

Fertilizer company in China. Thinks there is great opportunity for them. Stock ranks in the top 5% of his database. Earnings expected to grow slightly to $1.10 in 2010 and 15% to $1.27 in 2011. This is against a 6 PE. Looking to expand outside of China.

BUY

Potash play in China. Quite cheap on a PE multiple basis. Better growth opportunities than Potash (POT-T) because they are expanding their production plant. Not a mining company but is a producer and processor. Also a foreign currency play.

PAST TOP PICK

(A Top Pick Jan 26/09. Up 19.44%.) Slipped back in the ranks because of concerns of the overall fertilizer space.

PAST TOP PICK

(A Top Pick Jan 5/09. Up 7.1%.) Has been a disappointment. Had a nice rally from the time it was a top pick.

PAST TOP PICK

(Top Pick Feb 25’09, Up 18.5%) It is a way to own what will be the strongest currency in the world. Believes food is a theme that will be going on. Does not own other major potash stocks.

WAIT

Likes the company. Recent fund raising is for production increases coming in 12-18 months. They are a China play. Good management team and great facilities. It’s going to do very, very well. It’s on his radar.

BUY

Growing at 14-15% per year. High quality cash flowing company.

BUY

Canadian fertilizer company operating in Chinese. Likes management and their operations. Priced pretty well at 8X or 9X earnings. Had a big setback in 08 but has come back quite strongly.

COMMENT

Chinese fertilizer play. Potash distributor in China. Have been expanding their capacity. Bad news – see Sino forest. Cheap play on fertilizer. Continually pay a margin. An interesting name here. He has seen the facilities in China. Pretty well run operation.

DON'T BUY

(Market Call Minute) Recommended buy, but now he would not touch it.

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Gerald Allaye-Chan Migao Corp. MGO-T TOP PICK May 29, 2009

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