sino grandness - undervalued stock

Does anyone know of a video that shows how loquat juice is produced on a mass scale? I found an interesting video on orange juice. Presumably, loquat juice would be more or less done the same way.

SGX has given in-principle approval for placement to Thai towkays.

infopub.sgx.com/FileOpen/Sino_Grandness_...cement&FileID=327545

But Sino G's price has dropped below 40 cents. Will the towkays nego for a better placement price?

Leeta wrote a strongly persuasive piece in Valuebuddies.com:

1. if SinoG is fake, then Mr Huang is a very skillful conman. Too skillful that he is even able to con old hand Mr Mahagitsiri who is in the business for donkey years..and not only that, he must have cast some strong spells to get them lock up shares for 10yrs. The lo quat juice spell must be very potent that even Mr Mahagitsiri made up his mind to invest after a sip.

With the placement (approx. $40M if offer price is 50cts), SinoG now would have an enlarged shares of 670M and they have to fork out $10M dividend every year as required. $10M a year for $40M one time - not a good business deal. So whats the catch - Could there be a JV in the making? Expansion to Thailand or SEA or even business network ..Nestle comes to mind..???!!! Is Huang looking for further growth/expansion through this partnership?

2. Ok, lets say they manage to fake it in China because whole China is fake. But to take this to another level - Hong Kong, I dont think they can succeed if they are fake. I dont see how they can get past Wellcome HK which is controlled by Dairy farm and Hinsang, a listed company in HK , their appointed distributor. Dont these guys do checks as well? By the way Wellcome have stores also in China, they would have gotten information on the products and the sales figures.

3. The ipo process... - I bet that the IPO Mgr has read the shortseller report and would have done triple checks. Dont you think he or she is stupid? He/She would have resigned by now if there are any fraudulent figures. More info on the IPO here.. www.nextinsight.net/index.php?option=com...cle&id=9355&Itemid=1

EGM on 30 Dec will most likely see the placement receiving approval of shareholders. As agreed with the Thai towkays, Sino Grandness will implement a dividend policy of paying at least 10% of its earnings.

Relying on FY2014 estimates of EPS + assumptions of growth in 2015 + enlarged share base ......> I figure that the dividend would be roughly 2.3 SGD cents a share. The yield would then be 5-6% considering a share price of 38 cents.

Pretty decent yield and it would attract more investors. Time will tell if 38 cent share price today is a steal.

The supply of loquats is key to Garden Fresh's business. As the loquat beverage by Garden Fresh has become more popular, surely there is upward pricing pressure on the fruits.



Demand for the fruits is also coming from new players such as China Minzhong. Is there any public info on the market price of loquats?

* A Singaporean investor, on a visit to HK last week, has sent us pix of Garden Fresh beverages in HK stores.

* Only recently was a HK listco, Hin Sang, appointed by Sino Grandness as the distributor of Garden Fresh products in HK, targeting Wellcome and 7-Eleven.




Garden Fresh's loquat drink and hawthorn drink positioned next to Minute Maid.
@ Wellcome store in Concord Square shopping centre in Tsuen Wan, HK.



Seen at a Wellcome store in Citywalk, one of the largest shopping centres in Tsuen Wan, Hong Kong.
Price: HK9.50 (~S$1.50) for a 500 ml bottle.