Stockchase Opinions

Jason DonvilleMigao Corp.MGO.TOWAITMar 23, 2010

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.
$7.20

Stock price when the opinion was issued

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DON'T BUY

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

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.
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.
BUY
Growing at 14-15% per year. High quality cash flowing company.
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.
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
(A Top Pick Jan 26/09. Up 19.44%.) Slipped back in the ranks because of concerns of the overall fertilizer space.
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.
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.
TOP PICK
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.
BUY
Not a fertilizer producer but a refiner. Suffered a little more than the producers. Clean balance sheet. As a speculative play, he has no problem with it.
TOP PICK
Chinese blender of fertilizer. 5% growth year-over-year. Earnings have grown rapidly with a 19%-20% growth on a go forward basis. Likes that he is buying a hard currency country, which he expects will be an increasing currency.
TOP PICK
Chinese-based time-release fertilizer company. About 30% of sales is with a Chinese tobacco company. Fertilizer lasts longer and leafy produce grows stronger. Trading at 5.4X Sept/09 estimated earnings. If true, this is up 57% over last year. Has 75% capacity expansion underway, which they should be able to finance internally. Sell if it falls below $5.
TOP PICK
Potash. Thinks China is interesting. Use a $5 Stop.