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Mr Gordon Gekko

Mr Gordon Gekko
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  • Tianli Agritech - A Significantly Undervalued And Oversold Stock [View article]
    Black Hogs could be "rare and special varieties". On the other side OINK breeds normal hogs too.

    Yes, there is this sentcence in their 10-K, that they are an "encouraged" industry. But in the mentioned catalouge there is really no such hint. Maybe they were encouraged earlier, but now they are only "permitted".

    At the moment I am not totally convinced with this matter. Maybe I write to the CFO and ask for a clarification......
    Jun 22, 2012. 03:50 AM | Likes Like |Link to Comment
  • Tianli Agritech - A Significantly Undervalued And Oversold Stock [View article]
    Hi Brian,

    thank you for this detailed analysis. I totally agree with you. OINK is somewhat special. I did a detailed "Warren Buffet/Graham" security analysis myself. Same conclusion. I searched for fraud hints, for mismatching numbers, and so on. Nothing.

    But one question worries me:
    It exists a document published by the Chinese authorities:
    "Catalogue of Industries for Guiding Foreign Investment (2011 Amendment)".

    There breeding is listed as a prohibited industry for foreigners, means that a foreigner isn't allowed to own such a company.
    Even via a VIE company structure the authorities clarified in November 2011 that "control" is forbidden, and the authorities can ask for dissolution of the contract.

    (Maybe at the time of the IPO there was no such severe classification for breeding companies...)

    What is your opinion to this matter?
    Jun 20, 2012. 11:58 AM | Likes Like |Link to Comment