Tuesday, March 20, 2007

Something Smells at Bodisen Biotech--and it ain't Manure!


In January, China-based Bodisen Biotech Inc. (BBC-$3.36), which produces fertilizers and pesticides, announced it expected to post a 74 percent increase in 2006 earnings, as sales allegedly climbed an estimated 39 percent last year.

Bodisen said it expected 2006 revenue of $43 million and net income of $12.9 million, excluding one-time legal and other expenses related to deficiencies with the American Stock Exchange.

In 2005, the company reported $31 million in revenue and net income of $7.4 million.

Given today’s
announcement that the Company will delay the filing of its annual report—due to previously undisclosed ownership issues and other potential liabilities—in our view, shareholders should not take any previous earnings guidance seriously.

Money is like manure. You have to spread it around or it smells. – Industrialist Jean Paul Getty (1892 – 1976)

Unfortunately, something smells foul at Bodisen these days—and it's not money or manure.


RECENT TRADING HISTORY
SymbolPositionPurchase
Date
Purchase
Price
Cost
CAFE1,00003/14/2007$1.571,582.99

The 10Q Detective--sadly--holds shares in Bodisen Biotech. The 10Q Detective has a Full Disclosure policy.

3 comments:

Ambient Insight said...

Does the correction in CHNG share price presents a buying oppertunity or is it time to run for the hills? I am worried about the connection between these two companies. Thoughts?

Anonymous said...

REgarding your recent purchase of CAFE...May I ask what you're reasoning is?? The last thing I recall is in June of '05 they put out the PR indicating they had some deal with wal-mart, then the CEO either got fired or resigned, sued HOST and the stock has been on the pink sheets ever since. AM I missing something here??

David J. Phillips said...

re: CHNG--Company 'seems' to have a 'real' business model; drop seems to be more in sympathy than anything inherently wrong at CHNG.

re: CAFE--NEW CEO AT COMPANY CLEANING HOUSE/ HE DELIVERED ON PROMISE TO BRING COMPANY UP-TO-DATE W. REGULATORY FILINGS. NEXT BIG STEP--HIRING SOMEONE W> SALES EXPERIENCE TO START SELLING ENERGY SAVING PRODUCT(s) --DO NOT UNDERSTAND WHY THERE IS NO ONE W. SALES & MKTING EXPERIENCE ONBOARD?