March 19, 2008

AgFeed reports bullish shares

AgFeed pleased investors last week when it reported 2007 Earnings Per Share (EPS) of 25 cents and revenues of US$36.16 million.

The company anticipates doubling the number of stores in its product chain by the end of the year.

The stock popped above 30-day moving average support on the news and then moved into a bullish consolidation pattern.

The feed sales growth rate was 321 percent, EPS growth rate at 257 percent and net profit margin at 18.42 percent.

Institutional investors hold about 2 percent of the outstanding shares.

Over the past weeks, the stock has traded between US$4.60 and US$16.36.

AgFeed Industries is the top premix feed company in China, operating through subsidiaries that develop and manufacture blended feed and feed additives for the Chinese domestic pork husbandry market.