Yamada Green Resources

GEO and Relaxing: What's your latest view on Yamada? I am taking a little interest as it has stablilised at 24-26 cents and volume is quite strong, reflecting investor interest.

I bought some too, thinking that the founder and Sam Goi may take it private given its small market cap and strong growth potential.

Key takeaways from meeting with YAMADA GREEN RESOURCES:
www.nextinsight.net/index.php/story-arch...ith-yamada-resources

YAMADA GREEN RESOURCES: Logging permit would save considerable cash outlay:
www.nextinsight.net/index.php/story-arch...iderable-cash-outlay

It takes about 3 years to plant and grow the eucalyptus trees and harvest in 4th year from this article:
Opportunity in MYANMAR for savvy investors:
www.nextinsight.net/index.php/story-arch...calyptus-plantations

Yamada owns a total of 5,100 mu (1 mu equals approximately 667 sq m) of cultivation plots for growing Shiitake mushroom in Fujian.
Yamada owns a total of 51,193 mu (1 mu equals approximately 667 sq m) of eucalyptus plantation.
The cultivation and harvesting season is from (September - October) to (March - April).
The eucalyptus trees that have been cut down can re-generate themselves naturally for about 3 cycles.
Recent loging license (Valid till 21-Apr-2013) allows them to cut eucalyptus trees with reached maturity at five years of age from 5,534 mu of eucalyptus plantation which can make more than half of the total synthetic logs (60 Million) used in FY2014.

Quarter Results Trend: Results are significantly better for December and March than for June and September.
Stock Price: Support: 0.22, resistance: 0.255 and 0.26. historical high: 0.41, historical low: 0.11
Paid Dividend (0.043 rmb) once only for FY2010.
Sam Goi bought 2.1 million shares at 0.225 on 13-Mar-2013 under his own name.

My Opinion:
If there is no bad weather, Yamada profit for FY2014 (Dec-2013 and Mar-2014) will increase as they only need to spend lesser money to pay for synthetic logs. Expecting Mar-2013 quarter result lower as compared to Mar-2012.
If a longer period logging license can be granted with flexibility to harvest from its 51,000 mu rather than just 5,534 mu then it will be postive for Yamada if they had a good plan for cutting of the eucalyptus trees so as to have 100% of the total synthetic logs needed for each FY while taking into consideration of the 3 cycles, age of trees and number of trees need for each FY.
As of now, the logging license will help FY2014 Earnings but it remains questionable if Yamada can get the logging license every year and be able to cover 100% of the total synthetic logs needed for each FY.
They can grow the processed food business if they can save cash from the synthetic logs.

Questions:
Why didnt Yamada request for a bigger mu to cover 100% of the total synthetic logs needed for FY2014 through the current logging license? Are the rest of the trees not ready for harvest?
What is the age and cycle of the eucalyptus trees growing on the 51,000 mu of eucalyptus plantation?
Does Yamada has a good plan for cutting of the eucalyptus trees so as to have 100% of the total synthetic logs needed for each FY while taking into consideration of the 3 cycles, age of trees and number of trees need for each FY?
How much time is required for the eucalyptus trees to re-generate itself naturally after being cut? Any difference in time between each cycle with the trees getting older?
Does Yamada has a good plan to grow its processed food business so as to have much constant revenue and profit throughout the quarters?
How is Yamada going to battle bad weather as bad weather will affect its output of mushrooms?
After 3 cycles, is Yamada replanting the eucalyptus trees or are they buying new eucalyptus plantations?

Viviene , I am more interested in how the syndicates play this stock as basically nothing has changed in this company. Am not vested as present share price is still much higher than Goi’s average purchase price. I think many retail investors who speculate on Pennies / S-Chips lost money as SGX daily volumes have now dropped to about 2.5 billion shares , a far cry from the 10 billion frenzy earlier this yr. As SGX seems to be stuck at 3300, who knows when the frenzy will come back or if this counter will be played up again? Anyway, good luck.

Just noticed that 7.93 million shares done today and the stock price is firmer at 26 cents. The 3Q net profit was down sharply, however. Must be the Sam Goi effect. What could he do to help the business?

I am highly positive about Yamada which I think FY2013 is probably the worst for its mushroom biz. And, I am interested in its processed food biz which I think there is huge potential, just like the garden fresh of SinoGradness. Under the processed food, it has been growing 6 brands: 7th elements, 7th Manor, Konjac, Lazy Bone Kitchen, Wang Cheng Food and Food Area. Now that Yamada has more cash and potential cost saving from mushroom biz due to using own log, it could channel more resources to these brands and grow them more rapidly. If I am not wrong, these brands are already sold in major china cities. hopefully Sam Goi and his son could give some help. Good luck.