YONG - Yongye Biotechnology International, Inc.

[BlackThought]

Yongye International, Inc., together with its subsidiaries, engages in the research and development, manufacturing, and distribution of fulvic acid based liquid and powder nutrient compounds for plant and animal feed used in the agriculture industry in the People’s Republic of China. It sells two lines of product based on its fulvic acid base, including plant nutrition liquid compound and animal nutrition food additive. The company’s plant products add naturally occurring macro and micro nutrients, such as nitrogen, phosphorus, potassium, boron, and zinc; and animal products add natural herbs, which provide antibiotic type properties. It sells its products through corporate direct sales, community-direct sales, and distributor network sales, as well as through a branded store network. As of March 31, 2009, the company operated 2000 branded stores. The company was formerly known as Yongye Biotechnology International, Inc. and changed its name to Yongye International, Inc. as a result of merger with Yongye International, Inc. in June 2009. Yongye International is headquartered in Beijing, the People’s Republic of China.

[BlackThought]

BEIJING, Oct. 22 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc.
(Nasdaq: YONG), ("Yongye or "the Company") a leading manufacturer, developer
and distributor of Shengmingsu brand plant and animal nutrient products in the
People's Republic of China (PRC), today announced that the Company raised its
2009 annual revenue guidance to $94-$95 million from $89-$90 million which
represents a 96%-98% increase over 2008 results. The Company also provided
guidance for 2009 annual pre-tax income from operations of $30-$31 million,
which represents an increase of 119%-126% over 2008 results, and for 2009
annual pre-tax operating income margin of approximately 32%-33%.
"We have experienced stronger than expected revenue generation in our
new,
non-traditional markets in southern and central provinces, and internal
economies of scale which are expected to increase our 2009 pre-tax operating
income margin by approximately 4-5 percentage points over that of 2008,"
commented Mr. Zishen Wu, Chairman and CEO of Yongye International. "We
strongly believe these preliminary results support our geographic expansion
strategy for the coming years and our ability to scale the organization to
meet these demands.

http://www.reuters.com/article/press...09+PRN20091022

[BlackThought]

BEIJING, China, Oct. 2 /PRNewswire-Asia-FirstCall/ -- Yongye International,
Inc. (Nasdaq: YONG), ("Yongye or "the Company") a leading manufacturer,
developer and distributor of Shengmingsu brand plant and animal nutrient
products in the People's Republic of China (PRC), today announced its 2010-
2012 strategic plan.
Following the Company's rapid business expansion in 2008 and thus far in
2009, Yongye expects to achieve at least 50% growth in revenue during each of
the next three years through a strategy focused on geographic expansion into
new markets, increased penetration in existing markets, additional marketing
and brand-building efforts, and expanded production capacity. The Company also
intends to improve its cost structure and gain greater control of its supply
and distribution through vertical integration so as to enhance its profit
margins.
Geographic Expansion
Building on the Company's success with its "branded store" network over
the past two years, during which revenue nearly doubled from $48.1 million in
2008 to an anticipated level of $89-$90 million in 2009, Yongye plans to
rapidly accelerate its expansion into new provinces, particularly those in
southern China, beginning in 2010. The Company expects continued successful
replication of the "branded store" model implemented by its distributors,
which involves adding stores to its network and providing them with technical
product training, sales leadership training, and integrated marketing
campaigns.
In conjunction with its new market expansion strategy, Yongye also expects
to see continued increases in the number of branded stores in existing markets
and market penetration for Shengmingsu.
Marketing and Advertising
Yongye will continue to invest significantly in its highly effective
channel development activities to support its planned geographic expansion.
The Company will strengthen and expand the brand recognition of Shengmingsu
through advertising on top-tier national and local media outlets, such as
CCTV, that serve rural farmers and agriculture product store owners and
distributors. Integrated advertising and promotion campaigns at the national,
provincial and village level will ensure that rural farmers receive the
Company's branding message that Shengmingsu reliably increases crop yields'
quantity and quality.
Production Capacity
Yongye plans to increase its production capacity to ensure that the
Company has sufficient capacity for sustainable long-term growth. Currently,
Yongye has annual production capacity of 10,000 tons of Shengmingsu branded
nutrient products. The Company's current highly automated and cost effective
facility operates at almost full capacity to meet peak season demand and
inventory requirements. Yongye will announce detailed expansion plans by the
end of fourth quarter of 2009.
Vertical Business Integration
Yongye intends to increase its profitability through upstream and
downstream business integration. Yongye plans to acquire a lignite coal mine
in order to directly secure the raw materials that drive the largest
percentage of its cost of sales. This acquisition will enable Yongye to
tightly integrate the production of its humic acid with its fulvic acid
extraction processes. The Company expects to reduce costs and ensure control
over the quality of the humic acid produced once the acquisition is fully
integrated. This is expected to enable Yongye to significantly increase its
gross margin.
In addition, Yongye plans to acquire the Shengmingsu distribution channel
from certain distributors that have strong, established branded store
networks. This initiative would enable Yongye to establish more direct control
over sales to end customers, improve its profit margin, and decrease the risk
of high customer concentration. Management anticipates that this acquisition
will only have a minor impact on Yongye's working capital requirements, since
the Company currently issues 3-6 month credit terms to its mature
distributors.
Following its increased investment in research and development, Yongye
also plans to launch new products and extensions of existing products, which
would substantially increase the value of the distribution channel and deliver
new revenue opportunities.
"Over the past two years, we have seen dramatic growth in Yongye's
business and brand recognition for Shengmingsu. We believe our comprehensive
development strategy for the next three years will enable us to achieve
stronger profit margins while growing revenue at least 50% annually,"
commented Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye
International, Inc. "By integrating our business vertically, upgrading our
production capacity, and leveraging our branded store model with our unique
sales and marketing strategies, we aim to expand our geographic footprint in
new markets and our penetration in existing markets. We look forward to
successfully executing our development strategy and creating long-term value
for our shareholders."

http://www.reuters.com/article/press...09+PRN20091002

[BlackThought]

[BlackThought]

awful day for the market, especially the china stocks.. at this rate it might retrace all the way down to $7.00.

[BlackThought]

some interesting read:

http://seekingalpha.com/article/1698...g-up?source=hp

http://news.yahoo.com/s/afp/20091030...20091030022239

http://www.bloomberg.com/apps/news?p...d=a3SrVZ28OzG8

http://www.thestreet.com/story/10619...the-globe.html

"Asian economies from China to India will grow faster than expected through next year thanks to aggressive government stimulus spending and a pickup in global trade, the International Monetary Fund said, raising its forecast for the region. "

"The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." - Warren Buffett

[BlackThought]

Goldman Sees 30% Gain for Chinese Stocks Through 2010

Oct. 29 (Bloomberg) -- China stocks remain “a bright spot” and are set to rise by 30 percent through 2010 as the nation’s domestic demand increases, even though concerns over policy tightening will spur volatility, Goldman Sachs Group Inc. said.

Banks, insurers, internet businesses, health-care services and equipment providers will benefit most from the rising spending power of Chinese, Goldman Sachs said in a research note today.

“High volatility is likely along the way, mainly stemming from tug-of-war between robust fundamentals and lingering concerns over policy tightening in China,” Thomas Deng and Kinger Lau, analysts at Goldman Sachs, wrote.

Economic growth in China accelerated to 8.9 percent last quarter, the fastest pace in a year, fueled by government stimulus spending and record bank lending. That’s fueling speculation that inflation concern will prompt policy makers to tighten policy in the coming quarters.

China’s banking regulator said yesterday it plans to tighten rules on personal loans to prevent them from being used for speculation. Advances exceeding 300,000 yuan ($43,935) will be given directly to the borrower’s counterparty, rather than the borrower, according to a draft rule.

“A property market bubble cannot be ruled out” if monetary policy remains “too accommodative for too long,” Deng and Lau wrote in their report. Current property market valuations aren’t “overly-stretched,” they said.

Hong Kong’s Hang Seng China Enterprises Index will reach 16,800, and China’s CSI 300 Index will climb to 4,300 by the end of 2010, Goldman Sachs said. The forecasts are 31 percent higher than yesterday’s close of 12,831.18 for the H-share index of Hong Kong-traded mainland Chinese companies, and 29 percent above CSI 300’s close of 3,329.33 yesterday.

Hong Kong-listed China Construction Bank Corp., Shanghai- traded Ping An Insurance (Group) Co., U.S.-traded WuXi Pharmatech Cayman Inc. and Sina Corp. are among Goldman Sachs’ top 10 Chinese stock picks, according to the research note.

Companies that will sell shares in Shanghai for the first time next year, including China Mobile Ltd., Cnooc Ltd. and China Resources Enterprise Ltd., are likely to perform well in Hong Kong ahead of their mainland listings, the analysts said.

Chinese brokers will be the first to benefit from $40 billion of new shares to be listed in the Shanghai market, according to the report.

Chinese stocks will rise in the first quarter of 2010 as the nation’s policy makers reiterate their pro-growth bias when they convene at the Central Economic Working Conference in December, and the National People’s Congress in March, the analysts wrote. Better-than-estimated fiscal 2009 and first- quarter 2010 earnings will also drive shares higher, they said.

The H-share index may subsequently overshoot the brokerage’s target and climb to 20,000 in the second quarter, whereas the CSI 300 will advance to 5,300, according to the report. The Chinese government may start raising interest rates and tighten the financial environment later in the quarter as inflation pressure emerges, prompting investors to take profit, according to the research note.

Selling pressure will continue in the third quarter of 2010, Goldman Sachs said, estimating downside support levels for the H-share index at 11,800, and for the CSI 300 at 2,900, according to the research note. Valuations will then become “attractive,” providing an entry point for investors and thus stabilizing the market, the analysts said.

The equity market is set to gradually recover in the fourth quarter as liquidity remain “very bullish,” leading Chinese stocks to “a strong finish” in 2010, the analysts said.

http://www.bloomberg.com/apps/news?p...d=aYpdMXFMvYG8

Wooohoo!

[bmwe30mstyle]

this is what happens to value vs time when traders step into stocks that do well

[BlackThought]

Originally Posted by bmwe30mstyle

this is what happens to value vs time when traders step into stocks that do well

yep. it's been recently uplisted and has really strong fundamentals. i've decided to combine fundamentals along with technicals for my recent picks, that way i can be assured the stock is on a strong uptrend with strong support from investors. no more penny stocks for me.

[BlackThought]

Chinese companies can capitalize on new multinational investments

Policy changes

In response to the global financial crisis, the Chinese government unveiled a $586 billion stimulus package on Nov 9, 2008, to revitalize the country's slowing economy.

The money will be spent over the next two years to finance programs in 10 major areas such as low-income housing, rural infrastructure, water, electricity, transportation, environmental protection, technological innovation and rebuilding from several natural disasters.

The Chinese government has also adjusted policies to attract foreign investment. For example, the central government relaxed and decentralized the regulations on foreign investment in recent months.

Local governments are now authorized to approve foreign investment projects worth up to $100 million without seeking ministry-level approval.

This relaxation and decentralization in authority applies to business startups, acquisitions of domestic firms and the expansion of existing operations of foreign-owned companies.

In addition, the government has lowered the export quota for foreign-invested enterprises (FIEs) so that FIEs can supply the domestic markets rather than meet the export quota of their outputs.

Another change in government policies is to make the central and western regions more attractive to foreign investors.

To attract foreign investment, local governments in the central and western areas have come up with various preferential measures such as tax breaks, low-interest loans and cheap rent on industrial-purpose land.

Foreign investors are encouraged to invest in agriculture, environmental protection, infrastructure and industrial upgrades.

With tax breaks, they can also invest in occupational training, the operation of holiday destinations and even passenger transportation by bus or train. Foreign investors can start businesses either on their own or via joint ventures with Chinese partners.

http://www.chinadaily.com.cn/bw/2009...nt_8879593.htm