Saturday, May 23, 2009

Stock In Focus: Origin Agritech Limited (SEED)

By looking at the chart above of SEED, this stock has been on a price uptrend for the past few months.

Looking at the momentum indicators, the MACD is above its signal which is bullish and positive which is also positive.

The RSI is around 50 which is neutral i.e. neither too high or too low. So this means SEED price can move up or down. But there is still room for more upside movement.

Stock Profile

Origin Agritech Limited, through its subsidiaries, engages in the research, development, production, sale, and distribution of hybrid crop seeds in China. It offers primarily corn, rice, cotton, and canola seeds.

The company sells internally developed and licensed crop seeds. Origin Agritech distributes its products through first-level direct distributors, second-level distributors, and retailers.

It has license agreements with the Shijiazhuang Liyu Technology Development Co., Ltd. and the Henan Agricultural University. The company was founded in 1997 and is headquartered in Beijing, China.


Holder $ Value of Holdings

Claymore Advisors, LLC $2,469,800
UBS AG $149,077

Recently, the company announced that its profitability has improved. The company's first quarter 2009 financial results improvement included:

1Q09 Deferred Revenue was RMB176.63 million (US$ 25.84 million) increased 57.63% for the three-months ended December 31, 2008 as compared to RMB112.05 million (US$ 15.36 million) for the same period last year.

1Q09 Total Operating Expenses for the three-months ended December 31, 2008 were RMB39.96 million (US$5.85 million) decreased 15.0% as compared with RMB 47.01 million (US$6.44 million) reported for the same period in 2007.

Company CEO was quoted as saying "Our positive trends we saw in FY08 are carrying into FY09. Q109 demonstrated these positive growth trends. We expect to remaining quarters to show similar growth trends.

The strength of our renewed product portfolio and our long-term, technology-based solutions are meeting the demands of a growing market opportunity. We had two good quarters, and we continue to press on toward more advanced agricultural technologies, we are determined to drive improved performance going forward."

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To appreciate beauty; to find the best in others; to leave the world a bit better whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded.

Ralph Waldo Emerson