Ag bank of China primarily serves the less-developed regions and people in China: the rural areas, the villages, the farmers and peasants, the agriculture related business. Since the founding of People’s Republic (and Ag bank shortly after), farm produce price has been kept artificially low by the central government (in a way subsidize other industries), and since 1978 the reform of economy, the situation has improved, but the economy gap between rural and urban has increased in last 30 years.
Mistras Group (MG) Stamatakis Manuel N DIR 6,000 $75,000
Mistras Group (MG) Peterik Paul CFO 2,000 $25,000
They paid about $12.50 per share (IPO price). Very interesting. For most IPO shares “It’s Probably Overpriced”. But this one seems quite reasonable. After IPO, its market cap is about $300 m, with revenue of about $200 m. The income and earning per share number is eschewed because the company paid quite some preferred share dividend recently. I need to read whether those preferred shares will be converted.
That’s not my observation, that’s what Graham, the value investing guru, said in his book “Intelligent Investor”. I think this is especially true in the current IPO market. Two large recent IPOs, Shanda Games (Nasdaq:GAME) and Banco Santander Brasil S.A. (BSBR, SANB11.BR), showed exactly that. Both traded lower the first day it went public. I don’t have comprehensive statistics, but from my limited experience trading IPO stocks, most stocks traded lower the first day turned out to be a dog (lagger).
(11Nov09) The company announced Q3 09 results. Note the company had higher than expected expense on stock based executive compensation (related to IPO). Basically the company let the executive stock options vested upon IPO.
(Update Oct 08, 2009) I sold it this afternoon (ET) at $10, and got the new IPO Mistras (NYSE:MG). Like I did many times in the past, VITC went up after I sold it, and MG went down after I bought it Did I sell it too fast? Maybe. But I felt Mistras has more potential.
One interesting point is as the US population aging, consumption of vitamin, other dietary supplements, sports supplements and fitness club memberships are all rising. This buckled the trend in recession. Convenstional wisdom is as we entering recession, people watch their discretionay spending more carefully, which is not good for those business I just mentioned. But we need to notice on the other side of equation, as people felt the economic and psychological effects of recession, they pay more attention to their health: both physical and psychological, hence comes the spending on those things. In this Vitamin and diatary supplements business, obviously Vitacost is a low cost provider which match the cost concious consumers’ need.
(Update) Market cap calculation: the company issued 5.7 m * $14 = $79.8 m. According to 424B4: (principle and selling shareholders), 1,714,710 shares is about 8.0 % (last row). 5.7 /1.715 * 8% = 3.3241 * 8% = 26.59%. So the market cap is about:
$79.8 m / 26.59% = $300 m
Barrons has an article on solar plays, specifically it mentioned First Solar recent China project may not hold water. Interesting observation. I don’t know all the facts, but being curious, I listed some stuff here.
That’s exactly how I did with Shanda Games (Nasdaq:GAME) IPO today. Shanda is not new to me. I lost money on this one three years ago (see my old stock lesson here). I am not bitter about losing money either. Because after about 5 (6) years in US stock market, especially the roller coaster ride in the past year, I started trying to get emotion of making/losing money out of the stock game, I am not perfect yet but making progress.
One lesson I should learn is trust my own gut. The spin off of Shanda Games seems odd to me, because from business point of view, typically companies spin off non-core business, like Sohu/Changyou (Nasdaq:CYOU), EMC/VMWare (NYSE:VMW). The Shanda spin off looks like a secondary offering of Shanda Entertainment itself, because Online Game is its core business. Although Shanda (Nasdaq:SNDA) had committed itself to other ventures, including at one point use a sloan like “become China’s own Disney”. It has not make real inroad in other online business yet. Except made some money buying and selling Sina stocks couple years ago.
(Update 16Sept09) Brean Murry is out with a selling rating with Emdeon (source: StreetInsider). Quote:
While investors may be focusing on the potential benefit from healthcare reform, we view the benefit as a potential one-time boost to the growth rate in claims that will revert back to the low-single digits after the anniversary of enrollment…We apply a 13x multiple to our 2010 cash EPS estimate, which we believe may prove overly generous, to arrive at a fair value of $13 per share.
(Original) First heard about Emdeon (NYSE:EM) from Cramer on Mad Money before its IPO. I watch Mad Money from time to time, mostly for entertainment (not for ideas or education). But this healthcare bill processor IPO sounds interesting especially at this time. And to make it more interesting, the stock did not get huge pop post IPO. Hm. So I went ahead and looked at its IPO Prospectus.