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Recession? What recession?? Why should I cry about the stock market when all I do is PICK WINNERS!!??
Today I sold FUQI at 20.16. That's a 16% gain over my purchase price of 17.33 only 20 days ago. That's an annualized return of 297%. Can you do that? you? YOU? YOU!!??
Over the same time period, the S&P 500 actually lost 1.7%. You see, while I was busy planning the Little Tiger Golf Outing, FUQI was making me a lot of money. In the meantime, all of these high paid Madoffian money managers were supposedly at their desks making money for investors...and they lost money! Ba ha ha hee ho! They are horrible. I siss all over those dudes.
Yes...I have 17 consecutive profitable trades of 15% or better. I beat the market every time I go out to play. I am amazing. I am the one, the only $$$MR. MARKET$$$. Bring me your finest meats and cheeses.
Did you make monies on FUQI? You sees? You SEES??? Do you want me to show you my next stock pick? Then you need to do me a big favor.
We lost over 2000 members with some kind of computer glitch that I don't understand...so I want you to email at least two close friends and tell them to sign up for my FREE website.
If you do this..the picks will keep coming. If you don't, I will keep them to myself.
I am HUGE!
www.mrmarketishuge.com
================================================== ======
6/09/2009
FUQI - The I'm Getting Fat Winner!
Once upon a time, there was a running back for the Pittsburgh Steelers named Frenchy Fuqua:
Frenchy was a reliable but unspectacular running back. He was much better know for his “bling”:
Having said that , there was a very spectacular wrestler by the name of Mr. Fuji:
In honor of the late David Carradine, of Kung Fu fame, I started thinking Chinese this week:
So when it came to picking a stock, I figured, why not go with the best of all three?? If you put together Fuqua and Fuji, you get FUQI. FUQI is a Chinese company.
Today I bought stock in Fuqi International at 17.33. I will sell it in 4 to 6 weeks at 19.97. Here’s why I like FUQI.
First of all, look at this chart. Does this look like the chart of a stock that is in the least bothered by recession, economic slowdown, meltdown, trade restrictions or foul aroma coming from day old meats and cheeses?:
No…it doesn’t. It looks like a chart of a stock that is being bought up like no tomorrow. That’s good. But we need to find out why.
Fuqi International, Inc., through its subsidiaries, engages in designing, developing, promoting, and selling precious metal jewelry in the People’s Republic of China. The company offers basic gold jewelry, as well as a range of products, including rings, bracelets, necklaces, earrings, and pendants made from precious metals, such as platinum, gold, palladium, and karat gold. That’s right bitches, it’s all about the bling baby.
The luxury Chinese jewelry manufacturer, saw revenue jump 41% in the first quarter as the jewelry market in China remained hot despite the global economic slump. It has a forward P/E of just 8.8. The PEG ratio is a very low 0.29. Oh we’re just getting started. You see, Fuqi is catering to an enormous appetite for gold among China’s increasingly affluent people. You don’t have to be Frenchy to want the bling. I don’t want bling, but they don’t have bling big enough for my 19” biceps.
China’s market for jewelry and other luxury goods is expanding, due in part to the country’s rapid economic growth. According to the National Bureau of Statistics of China, China’s real gross domestic product, or GDP, grew by 9.0%, 11.4% and 11.1% in 2008, 2007 and 2006, respectively. Economic growth in China has led to greater levels of personal disposable income and increased spending among China’s expanding middle-class consumer base. According to Economist Intelligence Unit (EIU), private consumption has grown at approximately 9% compound annual growth rate, or CAGR, over the last decade.
What’s important to know is that the Chinese don’t think that it is bling. At its recent investors presentation, Fuqi was emphatic in stressing it is not in the luxury-goods business. Dexter Fong, executive vice president of corporate development, explained that owning gold is a basic feature of Chinese culture. It's not a luxury; it's part of a Chinese family's savings. A typical gift for a newborn may be a piece of jewelry with a hollow bit of gold. That would run in the $30-to-$50 range. If you are familiar with China, you’ll know that there are a lot of newborns.
In many countries, China and India among them, gold jewelry isn’t just an adornment, it’s a way to accumulate wealth and pass it along to future generations. Long experience has taught many people that necklaces around your neck and bracelets on your wrists are more portable and more reliable than volatile currencies and fragile banks. So, as personal income rises, so does the amount of money heading into gold jewelry. As wealth surges in China, there's also been a spike in luxury spending. For example, the country's jewelry industry was $14 billion in 2005 and is expected to be the largest – in the world – in about two years.
Sales in 2008 were up 153% from 2007, and earnings continue to rise.
Fuqi International has grown from a $15 million a year business in 2002 to sales of $399 million in 2008. And in some ways, the layoffs and hard times in China have only reinforced the need for tangible commodities that can be used when a rainy day arrives.
The EPS growth the past four quarters have been fantastic with the stock showing 133%, 225%, 60%, and 244% sequential growth. Sales have been even stronger growing 62%, 19%, 20%, 15%, 9%, 90%, 122%, and 177% the past eight quarters.
This current growth, along with the 2008 and 2009 earnings estimates for 122% and 36% growth, is very bullish for the long term. That is why there are already 8 mutual funds involved in this stock despite its young age. The 0% debt helps a lot also. Better yet, however, is the 24% ROE, 41% yoy EPS growth rate.
Insiders still own 54% of the shares outstanding, proving that management is going to ride this stock for a while so that they can profit from the amazing growth that this high quality gold, platinum, karat gold, diamond, and other precious stone jewelry in China.
The company has an extensive set of luxury products, which count more than 20,000. What's more, Fuqi has a vertically integration operation, which includes development, sales, marketing, order fulfillment and delivery. Fuqi runs everything–management, marketing, design, sales and manufacturing–from one 53,000-square-foot building, bringing out 300 new designs a month and selling through its 30 provincial distributors and 700 direct sales agents. No doubt, it's a high margin business. In fact, Fuqi marks up its products by over 40% on average.
They continuously innovate and change our designs based upon consumer trends in China. By continuously creating new designs and rapidly bringing them to market, they are able to differentiate themselves from competitors and strengthen their brand identity. They intend to open new retail locations by leasing unoccupied space, acquiring existing leases from third parties and/or acquiring the existing jewelry operations of third parties that occupy retail space. They continue to invest in their brand and their marketing ability in order to increase demand for their products. During the past several years, they have carried out a brand development strategy based on product quality and design excellence. This all means new growth.
On May 15th, FUQI posted its first quarter 2009 Financial results. Revenues for the first quarter of 2009 increased 41.0% to $109.4 million from $77.6 million in the first quarter of 2008. Gross profit in the first quarter of 2009 increased 105% to $18.1 million from $8.8 million for the same period in the prior year. Gross profit margin for the first quarter of 2009 increased 510 basis points to 16.5% compared to 11.4% in the same period in the prior year. The improvement in gross margin was primarily due to an increase of product segments, benefit from gradually rising precious metal prices and a stable increase in sales of Fuqi's and Temix's retail outlets. The Company continues to prudently grow its retail business to capitalize on higher retail margins, which has occurred in the first quarter of 2009. Income from operations for the first quarter increased 83% to $12.6 million from $6.9 million in the first quarter of 2008. I forgot to mention that FUQI has no long term debt. It was all paid down with the big cash flow from ops.
Net Income for the first quarter of 2009 increased 52% to $9.7 million, or $0.45 per diluted share, compared to $6.4 million, or $0.31 per diluted share in the same period of the prior year.
For the second quarter, the Company anticipates total revenue between approximately $89.5 - $93.5 million which includes wholesale and retail revenues. Net income in the second quarter is expected to be in the range of $5.9 - $6.9 million, or $0.27 - $0.32 per diluted share, based on a weighted average share count of 21.5 million shares.
For the full year 2009, the Company currently expects full-year revenue of approximately $442.0 - $465.0 million. These estimates include both wholesale and retail revenues and exclude the impact from any potential acquisitions. The Company also anticipates net income of approximately $32.0 - $35.0 million, or diluted EPS of $1.49 - $1.63, based on a weighted average share count of 21.7 million shares.
So what does all of this mean when it comes to share price? First of all, FUQI management is so generous to provide us with these earnings estimates. Want to know how good these estimates are? In June 2008, upside surprise was 25%. In September 2008, upside surprise was 19%. In December 2008, upside surprise was 40%. In March 2009, upside surprise was 32%. Get the picture? Fool me once, shame on you. Fool me twice, shame on me. What’s fool me 4 times??
So the ANAL-ysts are still hanging their hats on the high end of FUQI’s 2009 estimate by calling for earnings of $1.64 in 2009. Remember, we are talking about a long term growth forecast of 31%. This stock is on a momentum mission! So what do you think is going to happen to the stock price when earnings really come in at $2.22 per share? Even at the ANAL-ysts number and today’s PE, the stock price punches in at ($1.64 x 12 = $19.6
. That’s almost at my sales target. If you take the $$$MR. MARKET$$$ earnings prediction of $2.22 (and have I EVER been wrong?) that works out to ($2.22 x 12 = $26.64 ) as a share price. That’s right bitches…bring the bling.
Now a long time ago when I was in grad school at Wharton. That’s right…did I mention $$$MR. MARKET$$$ went to Wharton? I had this great, and brilliant, roommate named Ted Kuh. Well my friend Lance came to visit me and took a massive dump in the toilet in my dorm room. This subsequent flush flooded our bathroom and spilled over into Ted’s room. Ted said, “Hey man, what’s going on?” To which Lance responded…”Ernie help, the toilet overflowed and its going into Ted Chong’s room.” So much for the culturally evolved. Anyway, the reason I mention this anecdote is that the CEO of FUQI is actually named Yu Kwai Chong.
Mr. Chong bragged, ''We remain optimistic about the future growth of Fuqi, as evidenced by our increase in guidance. Our acquisition of Temix is complete and we are anticipating smooth execution of our integration plans. We are well on track to meet our goals for the year of opening or acquiring 60-80 retail counters and 8 to 10 stores. We have been evaluating the marketplace and are excited about the opportunities we see ahead of us, and in fact have already identified other possible locations. Our aggressive growth strategy combined with our strong capital position will allow us to quickly ramp up our retail business, while meeting the demand in our wholesale markets as well. We will continue to manage our balance sheet to be prepared to capitalize on opportunities we see in the marketplace.''
Mr. Chong concluded, ''As a result of the momentum we have built this year in our wholesale business, combined with our growing potential in the retail business, we are very encouraged about our future potential. Our ability to eport strong growth in our second quarter - our seasonally mildest quarter -- while the growth in the Chinese economy slowed a bit and we faced some negative impact from the earthquake is a testament to our ability to grow this business even in relatively challenging quarters. We are excited about the future of our wholesale and retail businesses and look forward to continuing on this growth trajectory to optimize value for our shareholders by making Fuqi the leading wholesale and retail company in our market.''
"We are excited to continue posting strong financial results in the first quarter of 2009, and are pleased to be one of the leaders in the growing luxury jewelry market in China, which has been somewhat resistant to the effects of the economic downturn. Despite the health of the global economy, we have put in place a structure that has allowed us to continue growing at respectable rates. We are now beginning to see signs of stability in the Chinese economy, which we believe will bode even better for our future results. We are focusing our efforts to drive the continued growth of our retail business and we believe the traditionally larger margins will have an increasingly significant impact on our profitability as our retail business continues to grow. We will continue to serve our wholesale customers optimally, by maintaining the right amount of inventory and varieties of design on hand at all time to fulfill our customer demand," commented Mr. Yu Kwai Chong, CEO and Chairman of Fuqi International.
Mr. Chong continued, "Our keen financial management has allowed us to post this impressive growth, and enabled us to begin to distinguish ourselves from the competition. We plan to continue to conservatively manage our balance sheet so that we are always ready to capitalize upon profitable opportunities in the marketplace."
Okay…bling it out. Let me know what you think about this stock and this write up. If it works out for you, please remember the Little Tigers!
I am HUGE!
$$$MR. MARKET$$$
__________________
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
Today I sold FUQI at 20.16. That's a 16% gain over my purchase price of 17.33 only 20 days ago. That's an annualized return of 297%. Can you do that? you? YOU? YOU!!??
Over the same time period, the S&P 500 actually lost 1.7%. You see, while I was busy planning the Little Tiger Golf Outing, FUQI was making me a lot of money. In the meantime, all of these high paid Madoffian money managers were supposedly at their desks making money for investors...and they lost money! Ba ha ha hee ho! They are horrible. I siss all over those dudes.
Yes...I have 17 consecutive profitable trades of 15% or better. I beat the market every time I go out to play. I am amazing. I am the one, the only $$$MR. MARKET$$$. Bring me your finest meats and cheeses.
Did you make monies on FUQI? You sees? You SEES??? Do you want me to show you my next stock pick? Then you need to do me a big favor.
We lost over 2000 members with some kind of computer glitch that I don't understand...so I want you to email at least two close friends and tell them to sign up for my FREE website.
If you do this..the picks will keep coming. If you don't, I will keep them to myself.
I am HUGE!
www.mrmarketishuge.com
================================================== ======
6/09/2009
FUQI - The I'm Getting Fat Winner! Once upon a time, there was a running back for the Pittsburgh Steelers named Frenchy Fuqua:
Frenchy was a reliable but unspectacular running back. He was much better know for his “bling”:
Having said that , there was a very spectacular wrestler by the name of Mr. Fuji:
In honor of the late David Carradine, of Kung Fu fame, I started thinking Chinese this week:
So when it came to picking a stock, I figured, why not go with the best of all three?? If you put together Fuqua and Fuji, you get FUQI. FUQI is a Chinese company.
Today I bought stock in Fuqi International at 17.33. I will sell it in 4 to 6 weeks at 19.97. Here’s why I like FUQI.
First of all, look at this chart. Does this look like the chart of a stock that is in the least bothered by recession, economic slowdown, meltdown, trade restrictions or foul aroma coming from day old meats and cheeses?:
No…it doesn’t. It looks like a chart of a stock that is being bought up like no tomorrow. That’s good. But we need to find out why.
Fuqi International, Inc., through its subsidiaries, engages in designing, developing, promoting, and selling precious metal jewelry in the People’s Republic of China. The company offers basic gold jewelry, as well as a range of products, including rings, bracelets, necklaces, earrings, and pendants made from precious metals, such as platinum, gold, palladium, and karat gold. That’s right bitches, it’s all about the bling baby.
The luxury Chinese jewelry manufacturer, saw revenue jump 41% in the first quarter as the jewelry market in China remained hot despite the global economic slump. It has a forward P/E of just 8.8. The PEG ratio is a very low 0.29. Oh we’re just getting started. You see, Fuqi is catering to an enormous appetite for gold among China’s increasingly affluent people. You don’t have to be Frenchy to want the bling. I don’t want bling, but they don’t have bling big enough for my 19” biceps.
China’s market for jewelry and other luxury goods is expanding, due in part to the country’s rapid economic growth. According to the National Bureau of Statistics of China, China’s real gross domestic product, or GDP, grew by 9.0%, 11.4% and 11.1% in 2008, 2007 and 2006, respectively. Economic growth in China has led to greater levels of personal disposable income and increased spending among China’s expanding middle-class consumer base. According to Economist Intelligence Unit (EIU), private consumption has grown at approximately 9% compound annual growth rate, or CAGR, over the last decade.
What’s important to know is that the Chinese don’t think that it is bling. At its recent investors presentation, Fuqi was emphatic in stressing it is not in the luxury-goods business. Dexter Fong, executive vice president of corporate development, explained that owning gold is a basic feature of Chinese culture. It's not a luxury; it's part of a Chinese family's savings. A typical gift for a newborn may be a piece of jewelry with a hollow bit of gold. That would run in the $30-to-$50 range. If you are familiar with China, you’ll know that there are a lot of newborns.
In many countries, China and India among them, gold jewelry isn’t just an adornment, it’s a way to accumulate wealth and pass it along to future generations. Long experience has taught many people that necklaces around your neck and bracelets on your wrists are more portable and more reliable than volatile currencies and fragile banks. So, as personal income rises, so does the amount of money heading into gold jewelry. As wealth surges in China, there's also been a spike in luxury spending. For example, the country's jewelry industry was $14 billion in 2005 and is expected to be the largest – in the world – in about two years.
Sales in 2008 were up 153% from 2007, and earnings continue to rise.
Fuqi International has grown from a $15 million a year business in 2002 to sales of $399 million in 2008. And in some ways, the layoffs and hard times in China have only reinforced the need for tangible commodities that can be used when a rainy day arrives.
The EPS growth the past four quarters have been fantastic with the stock showing 133%, 225%, 60%, and 244% sequential growth. Sales have been even stronger growing 62%, 19%, 20%, 15%, 9%, 90%, 122%, and 177% the past eight quarters.
This current growth, along with the 2008 and 2009 earnings estimates for 122% and 36% growth, is very bullish for the long term. That is why there are already 8 mutual funds involved in this stock despite its young age. The 0% debt helps a lot also. Better yet, however, is the 24% ROE, 41% yoy EPS growth rate.
Insiders still own 54% of the shares outstanding, proving that management is going to ride this stock for a while so that they can profit from the amazing growth that this high quality gold, platinum, karat gold, diamond, and other precious stone jewelry in China.
The company has an extensive set of luxury products, which count more than 20,000. What's more, Fuqi has a vertically integration operation, which includes development, sales, marketing, order fulfillment and delivery. Fuqi runs everything–management, marketing, design, sales and manufacturing–from one 53,000-square-foot building, bringing out 300 new designs a month and selling through its 30 provincial distributors and 700 direct sales agents. No doubt, it's a high margin business. In fact, Fuqi marks up its products by over 40% on average.
They continuously innovate and change our designs based upon consumer trends in China. By continuously creating new designs and rapidly bringing them to market, they are able to differentiate themselves from competitors and strengthen their brand identity. They intend to open new retail locations by leasing unoccupied space, acquiring existing leases from third parties and/or acquiring the existing jewelry operations of third parties that occupy retail space. They continue to invest in their brand and their marketing ability in order to increase demand for their products. During the past several years, they have carried out a brand development strategy based on product quality and design excellence. This all means new growth.
On May 15th, FUQI posted its first quarter 2009 Financial results. Revenues for the first quarter of 2009 increased 41.0% to $109.4 million from $77.6 million in the first quarter of 2008. Gross profit in the first quarter of 2009 increased 105% to $18.1 million from $8.8 million for the same period in the prior year. Gross profit margin for the first quarter of 2009 increased 510 basis points to 16.5% compared to 11.4% in the same period in the prior year. The improvement in gross margin was primarily due to an increase of product segments, benefit from gradually rising precious metal prices and a stable increase in sales of Fuqi's and Temix's retail outlets. The Company continues to prudently grow its retail business to capitalize on higher retail margins, which has occurred in the first quarter of 2009. Income from operations for the first quarter increased 83% to $12.6 million from $6.9 million in the first quarter of 2008. I forgot to mention that FUQI has no long term debt. It was all paid down with the big cash flow from ops.
Net Income for the first quarter of 2009 increased 52% to $9.7 million, or $0.45 per diluted share, compared to $6.4 million, or $0.31 per diluted share in the same period of the prior year.
For the second quarter, the Company anticipates total revenue between approximately $89.5 - $93.5 million which includes wholesale and retail revenues. Net income in the second quarter is expected to be in the range of $5.9 - $6.9 million, or $0.27 - $0.32 per diluted share, based on a weighted average share count of 21.5 million shares.
For the full year 2009, the Company currently expects full-year revenue of approximately $442.0 - $465.0 million. These estimates include both wholesale and retail revenues and exclude the impact from any potential acquisitions. The Company also anticipates net income of approximately $32.0 - $35.0 million, or diluted EPS of $1.49 - $1.63, based on a weighted average share count of 21.7 million shares.
So what does all of this mean when it comes to share price? First of all, FUQI management is so generous to provide us with these earnings estimates. Want to know how good these estimates are? In June 2008, upside surprise was 25%. In September 2008, upside surprise was 19%. In December 2008, upside surprise was 40%. In March 2009, upside surprise was 32%. Get the picture? Fool me once, shame on you. Fool me twice, shame on me. What’s fool me 4 times??
So the ANAL-ysts are still hanging their hats on the high end of FUQI’s 2009 estimate by calling for earnings of $1.64 in 2009. Remember, we are talking about a long term growth forecast of 31%. This stock is on a momentum mission! So what do you think is going to happen to the stock price when earnings really come in at $2.22 per share? Even at the ANAL-ysts number and today’s PE, the stock price punches in at ($1.64 x 12 = $19.6
. That’s almost at my sales target. If you take the $$$MR. MARKET$$$ earnings prediction of $2.22 (and have I EVER been wrong?) that works out to ($2.22 x 12 = $26.64 ) as a share price. That’s right bitches…bring the bling.Now a long time ago when I was in grad school at Wharton. That’s right…did I mention $$$MR. MARKET$$$ went to Wharton? I had this great, and brilliant, roommate named Ted Kuh. Well my friend Lance came to visit me and took a massive dump in the toilet in my dorm room. This subsequent flush flooded our bathroom and spilled over into Ted’s room. Ted said, “Hey man, what’s going on?” To which Lance responded…”Ernie help, the toilet overflowed and its going into Ted Chong’s room.” So much for the culturally evolved. Anyway, the reason I mention this anecdote is that the CEO of FUQI is actually named Yu Kwai Chong.
Mr. Chong bragged, ''We remain optimistic about the future growth of Fuqi, as evidenced by our increase in guidance. Our acquisition of Temix is complete and we are anticipating smooth execution of our integration plans. We are well on track to meet our goals for the year of opening or acquiring 60-80 retail counters and 8 to 10 stores. We have been evaluating the marketplace and are excited about the opportunities we see ahead of us, and in fact have already identified other possible locations. Our aggressive growth strategy combined with our strong capital position will allow us to quickly ramp up our retail business, while meeting the demand in our wholesale markets as well. We will continue to manage our balance sheet to be prepared to capitalize on opportunities we see in the marketplace.''
Mr. Chong concluded, ''As a result of the momentum we have built this year in our wholesale business, combined with our growing potential in the retail business, we are very encouraged about our future potential. Our ability to eport strong growth in our second quarter - our seasonally mildest quarter -- while the growth in the Chinese economy slowed a bit and we faced some negative impact from the earthquake is a testament to our ability to grow this business even in relatively challenging quarters. We are excited about the future of our wholesale and retail businesses and look forward to continuing on this growth trajectory to optimize value for our shareholders by making Fuqi the leading wholesale and retail company in our market.''
"We are excited to continue posting strong financial results in the first quarter of 2009, and are pleased to be one of the leaders in the growing luxury jewelry market in China, which has been somewhat resistant to the effects of the economic downturn. Despite the health of the global economy, we have put in place a structure that has allowed us to continue growing at respectable rates. We are now beginning to see signs of stability in the Chinese economy, which we believe will bode even better for our future results. We are focusing our efforts to drive the continued growth of our retail business and we believe the traditionally larger margins will have an increasingly significant impact on our profitability as our retail business continues to grow. We will continue to serve our wholesale customers optimally, by maintaining the right amount of inventory and varieties of design on hand at all time to fulfill our customer demand," commented Mr. Yu Kwai Chong, CEO and Chairman of Fuqi International.
Mr. Chong continued, "Our keen financial management has allowed us to post this impressive growth, and enabled us to begin to distinguish ourselves from the competition. We plan to continue to conservatively manage our balance sheet so that we are always ready to capitalize upon profitable opportunities in the marketplace."
Okay…bling it out. Let me know what you think about this stock and this write up. If it works out for you, please remember the Little Tigers!
I am HUGE!
$$$MR. MARKET$$$
__________________
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
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