Thoughts on NutryFarm (fka Lottvision)

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9 years 6 months ago - 6 years 4 months ago #21364 by josephyeo
Thoughts on Lottvision (Vested)

The company was listed on 28 Dec 2002 at 23 cts per share.
After a few years of losses it was put under SGX Watchlist
on the 3rd June 2011. It turnaround in 2013 w a profit of close to S$1 mil. It was then taken off the Watchlist on 10 Oct 2013. The company remained profitable the following year with a smaller profit of S$0.22 mil.

The turnaround was mainly attributed to their taking a
majority stake in Nutryfarm (Chengdu) Biomedicine Limited.
It had subsequently closed all loss making companies withinthe group n Nutryfarm is now their main focus.

Below are some reasons why I am interested n vested in the
company:

1. it's a turnaround company with improving top n bottom
line.

2. the 2nd quarter result for year 2015 has been very
encouraging w a profit of S$0.55 mil. and a revenue of S$6.4 mil against 1st quarter profit of S$11k n revenue of S$3.6 mil.

The low profit for 1st quarter was attributed to expenses
of S$0.55 mil incurred in engaging Mrs Hai Qing, a famous
Chinese movie star as it's Brand ambassador and S$0.30 mil
for advertising. If we take away these expenses the 1st
quarter result was actually quite good.

3. current price of 1.0 cts is far below the 52 weeks high of 3.0 cts per share.

4. current price is almost 50% below the placement price of 1.9 cts. The company placed out 10,526,316 shares at 1.9 cts on 17 June 2014 (date of listing).

5. current price is 50% below the price paid by the current CEO, Paul Gao Xiangnong. He took up 169,000,000 shares at 2.0cts per share on 22 April 2014.

6. current price of 1.0 cts is near the historical 52 weeks low of 0.8 cts. And also in the last 5 years.

One principle in investing is :
"If you buy a share at it's bottom, you cannot lose money."
(Caveat .. Unless the company go bankrupt or there are
ïrregularities)

7. absolute low price of 1.0 cts per share.

At the moment the company is not under valued but if it is
able to maintain n improve on current revenue n profit trend it may be an under valued stock in the future,

Summary on why I am vested:
It's a turnaround company w improving top n bottom line.
Current price is almost half the placement price and also half of what the CEO paid for. I also like it's absolute low price. The fact that it's trading at it's historical low may mean that the risk is low barring any unforseen irregularities.

Note: Above is just to share my thoughts. Ideas put forth
may or may not be right. Do read up the financials should you wish to consider putting your money on this stock. Further, it may take a few quarters of results to confirm that the company is on the right track .. so patient is required.
Last edit: 6 years 4 months ago by min1xyz. Reason: change of company name
The following user(s) said Thank You: Rich

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9 years 6 months ago #21401 by josephyeo
Replied by josephyeo on topic Thoughts on Lottvision
2,323,000 shares traded at 1.0 cts and 193,000 traded at 0.9 cts.

o

josephyeo wrote: Thoughts on Lottvision (Vested)

The company was listed on 28 Dec 2002 at 23 cts per share.
After a few years of losses it was put under SGX Watchlist
on the 3rd June 2011. It turnaround in 2013 w a profit of close to S$1 mil. It was then taken off the Watchlist on 10 Oct 2013. The company remained profitable the following year with a smaller profit of S$0.22 mil.

The turnaround was mainly attributed to their taking a
majority stake in Nutryfarm (Chengdu) Biomedicine Limited.
It had subsequently closed all loss making companies withinthe group n Nutryfarm is now their main focus.

Below are some reasons why I am interested n vested in the
company:

1. it's a turnaround company with improving top n bottom
line.

2. the 2nd quarter result for year 2015 has been very
encouraging w a profit of S$0.55 mil. and a revenue of S$6.4 mil against 1st quarter profit of S$11k n revenue of S$3.6 mil.

The low profit for 1st quarter was attributed to expenses
of S$0.55 mil incurred in engaging Mrs Hai Qing, a famous
Chinese movie star as it's Brand ambassador and S$0.30 mil
for advertising. If we take away these expenses the 1st
quarter result was actually quite good.

3. current price of 1.0 cts is far below the 52 weeks high of 3.0 cts per share.

4. current price is almost 50% below the placement price of 1.9 cts. The company placed out 10,526,316 shares at 1.9 cts on 17 June 2014 (date of listing).

5. current price is 50% below the price paid by the current CEO, Paul Gao Xiangnong. He took up 169,000,000 shares at 2.0cts per share on 22 April 2014.

6. current price of 1.0 cts is near the historical 52 weeks low of 0.8 cts. And also in the last 5 years.

One principle in investing is :
"If you buy a share at it's bottom, you cannot lose money."
(Caveat .. Unless the company go bankrupt or there are
ïrregularities)

7. absolute low price of 1.0 cts per share.

At the moment the company is not under valued but if it is
able to maintain n improve on current revenue n profit trend it may be an under valued stock in the future,

Summary on why I am vested:
It's a turnaround company w improving top n bottom line.
Current price is almost half the placement price and also half of what the CEO paid for. I also like it's absolute low price. The fact that it's trading at it's historical low may mean that the risk is low barring any unforseen irregularities.

Note: Above is just to share my thoughts. Ideas put forth
may or may not be right. Do read up the financials should you wish to consider putting your money on this stock. Further, it may take a few quarters of results to confirm that the company is on the right track .. so patient is required.

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9 years 6 months ago - 9 years 6 months ago #21405 by josephyeo
Replied by josephyeo on topic Thoughts on Lottvision
More on Lottvision:

1. company is now more focus.

with the disposals of loss making subsidiaries,
management will now have more time to focus on their new core business.

2. better allocation of resources.

company is now in a better position to allocate more resources such as manpower, finance etc to the new business.

3. change in strategy produced positive results.

the recent engagement of Mrs Hai Qing as brand ambassador at a cost of HK$1.8 mil and expenses on media advertising of HK$1.8 mil seem to have produce positive results.
2nd Quarter revenue has jumped from HK$21,511,000 to HK$38,013.000 and profit has jumped from HK$69,000. to HK$3,342,000 against the 1st quarter … a jump of 77% and 4700% respectively.

If the company can maintain this growth trend it would be good for long term investors .. probably a multi bagger. But if the story line change to negative, then it is best to review your position.

Above are just food for thoughts. Do trade carefully.
Good luck to all!


josephyeo wrote: Thoughts on Lottvision (Vested)

The company was listed on 28 Dec 2002 at 23 cts per share.
After a few years of losses it was put under SGX Watchlist
on the 3rd June 2011. It turnaround in 2013 w a profit of close to S$1 mil. It was then taken off the Watchlist on 10 Oct 2013. The company remained profitable the following year with a smaller profit of S$0.22 mil.

The turnaround was mainly attributed to their taking a
majority stake in Nutryfarm (Chengdu) Biomedicine Limited.
It had subsequently closed all loss making companies withinthe group n Nutryfarm is now their main focus.

Below are some reasons why I am interested n vested in the
company:

1. it's a turnaround company with improving top n bottom
line.

2. the 2nd quarter result for year 2015 has been very
encouraging w a profit of S$0.55 mil. and a revenue of S$6.4 mil against 1st quarter profit of S$11k n revenue of S$3.6 mil.

The low profit for 1st quarter was attributed to expenses
of S$0.55 mil incurred in engaging Mrs Hai Qing, a famous
Chinese movie star as it's Brand ambassador and S$0.30 mil
for advertising. If we take away these expenses the 1st
quarter result was actually quite good.

3. current price of 1.0 cts is far below the 52 weeks high of 3.0 cts per share.

4. current price is almost 50% below the placement price of 1.9 cts. The company placed out 10,526,316 shares at 1.9 cts on 17 June 2014 (date of listing).

5. current price is 50% below the price paid by the current CEO, Paul Gao Xiangnong. He took up 169,000,000 shares at 2.0cts per share on 22 April 2014.

6. current price of 1.0 cts is near the historical 52 weeks low of 0.8 cts. And also in the last 5 years.

One principle in investing is :
"If you buy a share at it's bottom, you cannot lose money."
(Caveat .. Unless the company go bankrupt or there are
ïrregularities)

7. absolute low price of 1.0 cts per share.

At the moment the company is not under valued but if it is
able to maintain n improve on current revenue n profit trend it may be an under valued stock in the future,

Summary on why I am vested:
It's a turnaround company w improving top n bottom line.
Current price is almost half the placement price and also half of what the CEO paid for. I also like it's absolute low price. The fact that it's trading at it's historical low may mean that the risk is low barring any unforseen irregularities.

Note: Above is just to share my thoughts. Ideas put forth
may or may not be right. Do read up the financials should you wish to consider putting your money on this stock. Further, it may take a few quarters of results to confirm that the company is on the right track .. so patient is required.

Last edit: 9 years 6 months ago by josephyeo. Reason: paragraphing

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9 years 6 months ago #21413 by josephyeo
Replied by josephyeo on topic Thoughts on Lottvision
Share w you a quote from Lottvision's management in it's second quarter management's comment :

"In current year, NFC holds 7 new licenses of
nutrition and healthy food and expects to launch all new products within calendar year 2014."
---- end ----

Successful launch of the 7 new products implies higher revenue for second half of this financial year. And much more so for next financial year as it enjoy the sales of one full year.

Just for sharing n hope the news products will bear fruits.

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9 years 6 months ago #21436 by josephyeo
Replied by josephyeo on topic Thoughts on Lottvision
FYI ... big selldown today. Not sure why. Could be market sntiments, forced sales, somebody getting out of the market or insiders or ???

Total of 6.9 mil @ 0.8; 14.4 mil @ 0.9; 11.5 mil @ 1.0 and 1.9 mil @ 1.1 cts. Total of 34.6 mil shares traded.

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9 years 6 months ago #21446 by sykn
Replied by sykn on topic Thoughts on Lottvision
Joseph, I guess the answer to your last question is in the announcement that just came out about placement and consolidation of shares. May I know your views of this move from the perspective of us retail investors? Thank you.

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