HaavBline

American Dairy: How to Milk the Chinese Market

"The milk business in China has had to do a lot of fence mending following last year’s melamine-tainting scandal. American Dairy came through that with its record clean as a whistle and growth has been excellent since then."

That event was the big break for American Dairy. Before, it was a minor player against much larger, well-established competitors. After, most major competitors, especially those in China's North/Northeast covered by ADI, were deeply (some mortally) wounded and thus creaded huge opportunities for them.

It appears ADI refrained from ramping up productions and sales and went for high-end, high-profit instead. This maybe a smart move because sudden accelerated expansion can easily mean lost control.

Previously I pwned this stock and took profit too early, for a small company out there, it is hard to be sure that management knows to do the right thing even though the opportunity is enormous. This is a promising growth stock and great buy if a little further correction.