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5.00M for AgFeed Industries, Inc. Private Placement AgFeed Industries, Inc. (NasdaqGM: FEED) announced a private placement of 900,000 common shares at $5.23 per share for gross proceeds of $4,707,000 with Vision Opportunity China Fund Ltd, managed by Vision Opportunity Capital Management, LLC on October 13, 2008.
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They said that business is getting better because demand is usually strong before spring festival. We asked them if they are benefiting from higher HOG prices now and they told us of course and to monitor the hog prices and you will have idea on how we are doing and hopefully we see good results in their next earnings report. They could not give any details about sales or profits but they said follow our web site or yahoo announcements because they are eager to release any positive news whenever they can and hopefully they will do so by end of December or maximum before Spring festival. But overall they felt good about the market now.
Regarding shares buyback they said results will be provided in 10K and as well as in their quarterly report. They cannot provide any specifics in order to be in compliance with SEC regulations. Frankly we did not push them for information only to see how they felt about the market.
From the HOG web sites which we follow we are seeing HOG prices rise and they are expected to rise sharply 3 weeks before the spring festival. Our hog breeder friend in Fujian said that usually the business will start to pick up 2 months prior to Spring festival then prices will stabilize about 5-6 weeks before the holiday and then rise again sharply about 3 weeks before the holiday. Which means we can expect prices to rise sharply around beginning of December. Find hereunder today's hog prices from www.chinabreed.com:
Usually the average prices in South Of China are higher than rest of China because the standard of living there is higher and they eat a lot of pork in these areas. But overall we are seeing a much better picture for HOG market.
Do you still want more reasons to buy this stock. If you are short are you still convinced that your behavior is correct? And if you want to sell are you sure you should do so now when stock is selling at PE of 4 and all information points that they will most likely beat expectations next 2 quarters?
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