Topic: How To Invest

Pat: With fertilizer in the news, what do you think about this stock – China Green Agriculture? Thanks.

Article Excerpt

China Green Agriculture Inc., $8.63, symbol CGA on New York (Shares outstanding: 26.8 million; Market cap: $231.7 million), sells organic fertilizers to clients in China’s expanding agricultural industry. The company believes its fertilizers are just as effective as regular fertilizers, but better for the environment. China Green also sells other agricultural products. The company has two segments: 1) The Jinong division researches, develops, produces and distributes humic acid-based compound fertilizers. Humic acid comes from naturally occurring humus matter in soil. China Green gets over 88% of its revenue from the Jinong division. 2) The Jintai division develops, produces and distributes agricultural products, such as fruits, vegetables, flowers and coloured seedlings. This division accounts for 12% of China Green’s revenue. In the fiscal year ended June 30, 2010, China Green’s revenue jumped 48.0%, to $52.1 million from $35.2 million in the prior year. The Jinong division’s sales climbed 58.6%, to $45.8 million from $28.9 million. That’s because the company raised its production capacity. The Jintai…