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Origin Agritech Divests in BioCentury (NASDAQ: SEED)

|Includes: Origin Agritech Limited (SEED)

Today Origin Agritech (NASDAQ: SEED) Announced the sale of a Minority Stake in South China Cotton seed producer, BioCentury. The sale was to an internal private investor in Biocentury for RMB 60 million or roughly $8.7 million. The company has divested in a strategy to maximize portfolio and focus on its market segment.

Although the company has stated that this would not affect top line on the next quarter, it is an obvious effort to run leaner into quarter 3. On May 11th, SEED reported a quarter two loss of .18 cents a share, an improvement of a loss of .52 cents a share from a year ago.

Currently SEED is trading at $8.09 up .32 or 4% on a volume of 136k.  Although this stock has seen better days, peaking at the $17.00 range in 2006, the past year has marked a slow recovery for the company as China continues to gain steam in the world economy and improved farming techniques are adopted by Chinese farmers across the PRC. 

Disclosure: no positions