One World Trader Posted February 21, 2014 Share Posted February 21, 2014 American Lorain Corporation - selling at 87 percent discount to book value. http://www.gurufocus.com/news/247570/american-lorain-corporation--on-sale-for-87-margin-of-safety-to-book-value Link to comment Share on other sites More sharing options...
jouni1 Posted February 21, 2014 Share Posted February 21, 2014 oh a super cheap chinese company. why this one? edit: also, why do they call themselves american? is it just to give potential investors peace of mind? i see "american" doesn't appear on the products shown on the website. "english" on the site probably came through google translator. they listed through a reverse merger, are chinese and look too good to be true. Link to comment Share on other sites More sharing options...
One World Trader Posted February 22, 2014 Author Share Posted February 22, 2014 Hello jouni1, Thank you for the interest. To respond to your comments: oh a super cheap chinese company. why this one? edit: also, why do they call themselves american? is it just to give potential investors peace of mind? i see "american" doesn't appear on the products shown on the website. "english" on the site probably came through google translator. they listed through a reverse merger, are chinese and look too good to be true. This business has recently obtained 51 percent control of the Athena Group, a French in chestnut producer. This business is also selling for a large discount to its tangible book value per share. This company has a growing value to their assets in production. http://abcnews.go.com/GMA/Business/story?id=8041663 Link to comment Share on other sites More sharing options...
bz1516 Posted February 22, 2014 Share Posted February 22, 2014 I think they call it American Lorain because they are cynical and know there are retail investors in the US who won't do the most basic research. Tells me they are looking for the lowest end of the investor scale, the same subset that buy pump and dumps, making it more likely it is a fraud. Anyone who has done business in China knows fraud is part of the mainland Chinese culture. Companies like this are too small for the Carson Blocks of the world to waste their time with. If this thread goes on much longer I'll tell you what I really think. :) Link to comment Share on other sites More sharing options...
constructive Posted February 22, 2014 Share Posted February 22, 2014 According to the latest 10Q they have 33 different outstanding bank loans and notes, ranging from 1.3% to 10.4% interest. Why so many small accounts? They paid $2.44M in interest in Q4 on $76.3M of debt. Annualize that to get 12.8% interest. So why are they wasting money on interest when they supposedly have $36M of cash on the balance sheet? Why are they wasting money on an acquisition when ALN supposedly trades at 2x earnings? Link to comment Share on other sites More sharing options...
One World Trader Posted February 22, 2014 Author Share Posted February 22, 2014 Hello constructive, Thank you for the interest in this post. To respond to the questions: According to the latest 10Q they have 33 different outstanding bank loans and notes, ranging from 1.3% to 10.4% interest. Why so many small accounts? They paid $2.44M in interest in Q4 on $76.3M of debt. Annualize that to get 12.8% interest. So why are they wasting money on interest when they supposedly have $36M of cash on the balance sheet? Why are they wasting money on an acquisition when ALN supposedly trades at 2x earnings? 1,2. The corporation would be best to answer these questions. 3. The large amount of cash-on-hand is used to purchase chestnuts / raw materials for inventory. The acquisition is to control land and production in Europe that is used to grow chestnuts. Link to comment Share on other sites More sharing options...
jouni1 Posted February 22, 2014 Share Posted February 22, 2014 1,2. The corporation would be best to answer these questions. agreed. they probably won't though. this company smells fishy. Link to comment Share on other sites More sharing options...
One World Trader Posted March 4, 2014 Author Share Posted March 4, 2014 The American Lorain Corporation Announces Agreement to Develop Dayunsi Forestry Farm http://finance.yahoo.com/news/american-lorain-corporation-announces-agreement-140000511.html Link to comment Share on other sites More sharing options...
oddballstocks Posted March 4, 2014 Share Posted March 4, 2014 I looked at these guys when they were a net-net, they had fraud or at least questionable business written all over them. I'd advise staying away, the material posted on this thread is already enough to raise an eyebrow. Link to comment Share on other sites More sharing options...
SpecOps Posted March 4, 2014 Share Posted March 4, 2014 I came across this too a couple of years ago. There are too many red flags for me, large cash balance with debts is one of the biggest. Link to comment Share on other sites More sharing options...
One World Trader Posted March 5, 2014 Author Share Posted March 5, 2014 Released today on American Lorain - *DJ (Dow Jones) American Lorain Expects Farm To Yield 500 Metric Tons Of Chestnut Raw Materials In 3 Years Mar 03, 2014 09:01:00 (ET) Link to comment Share on other sites More sharing options...
jouni1 Posted March 6, 2014 Share Posted March 6, 2014 Released today on American Lorain - *DJ (Dow Jones) American Lorain Expects Farm To Yield 500 Metric Tons Of Chestnut Raw Materials In 3 Years Mar 03, 2014 09:01:00 (ET) did you invest in this? long or short? Link to comment Share on other sites More sharing options...
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