Can Stevia Cash-in BIG as a Healthier Alternative to Sugar? STEV, IPSU, GLGL, SUWN & TATE : Blog

Can Stevia Cash-in BIG as a Healthier Alternative to Sugar? STEV, IPSU, GLGL, SUWN & TATE : Blog.

If you are looking for more exposure to agricultural commodities, sugar and sweetener stocks Imperial Sugar Company (NASDAQ: IPSU)GLG Life Tech (NASDAQ: GLGL),Sunwin International Neutraceuticals (OTC: SUWN)Tate & Lyle PLC (LON: TATE;TATYY) and Stevia Corp. (OTC: STEV) could all help to sweeten up your portfolio with profits. For starters, the huge clamor for corn, soybeans, wheat and just about every agricultural crop in general has been a huge boon to the agricultural industry. In fact, the Wall Street Journal has recently reported that the US Department of Agriculture is projecting total cash receipts, or income for agriculture will jump 9% this year to a record $341 billion. However, its also important to remember that not all agricultural commodities or crops, especially when it comes to sweeteners, are the same or have the same potential to deliver huge growth and profits as consumers are becoming more health conscious.

For example: USA Today pointed out last year that there is a heated debate going on over the health risks associated with consuming too much sugar, high-fructose corn syrup (HFCS) and other similar types of sweeteners. On one side of the debate are groups representing the sugar and high-fructose corn syrup (HFCS) industries who say their products are natural and do not cause weight gain or other health problems while on the other side of the debate are health and public interest groups who argue that these products come with health risks and need to be regulated more.

Whichever side comes out a winner in this debate over sweeteners will have major repercussions for the food and beverage industry and agricultural producers alike as Americans eat and drink an average of 22.2 teaspoons (or 355 calories) of sugar a day.

What is Stevia?

One lesser known agricultural crop that is an alternative to sugar and high-fructose corn syrup (HFCS) is Stevia. In case you are not familiar with Stevia, its actually 240 species of plants that are native to South America, Central America and Mexico (plus several species can be found in Arizona, New Mexico and Texas) that has long been used as a folk medicine by natives of these regions.

What makes Stevia attractive for farmers and food processors seeking a sweetener is the fact that its extract has up to 300 times the sweetness of sugar. Moreover, Stevia has also attracted attention due to higher demand for low-carbohydrate and low-sugar food alternatives. Since Stevia has a negligible effect on blood glucose, it also makes a great natural sweetener for those who are on carbohydrate-controlled diets.

Today, Japan consumes more Stevia than any other country in the world and accounts for 40% of the Stevia market. In fact, the Japanese have been using stevia for table use, food products and soft drinks (including in Coca-Cola).

Otherwise and in 2008, the US Food and Drug Administration approved Stevia extract Reb-A for use in the USA and in less than a year, Stevia’s US sales surpassed sales figures for saccharine and aspartame. Today, Stevia can be found in over 6,000 products ranging from beverages to foods to medicines and its increasingly heading towards mass commoditization like sugar and high fructose corn syrup (HFCS). Sales of Stevia sweetened products also topped $2 billion in 2011.

On the production side, China is now the largest producer of Stevia in the world followed by other Asian or South American countries. The Stevia plant itself is a perennial but its growing cycle can vary greatly depending on the type of Stevia and the growing location plus the plant is also sensitive to frost. Hence and in China, its common to only have one or two Stevia harvests but closer to the equator, its possible to harvest Stevia year round.

Who Produces Sugar, Stevia and Other Sweeteners?

For investors looking to sweeten their portfolio with Stevia along with sugar or other types of sweeteners, the following companies trade publicly:

  • Imperial Sugar Company (NASDAQ: IPSU). A processor and marketer of refined sugar and other sweeteners in the North American Free Trade Agreement (NAFTA) region, the Imperial Sugar Company had missed its last quarterly earnings estimate because it could not pass on raw material increases to its customers. In fact, Imperial Sugar Company’s stock then lost three-fourth’s of its value – despite the fact that it should otherwise be considered a safe and defensive food stock. On Friday, Imperial Sugar Company rose 6.32% to $7.07 (IPSU has a 52 week trading range of $5.75 to $25.68 a share).
  • GLG Life Tech (NASDAQ: GLGL). A Chinese integrated producer of Stevia extract, GLG Life Tech had issued a press release in early October that discussed operational obstacles that have negatively impacted the company’s business. A few days later, a short seller issued a detailed blog post outlining on-the-ground due diligence that concluded that the stock will not be staging a rebound. Nevertheless, GLG Life Tech and other Chinese Stevia producers face a bigger problem: When it comes to sweeteners, the Chinese do not care about calorie content as much as Americans do. However and on Friday, GLG Life Tech rose 7.69% to $1.96 (GLGL has a 52 week trading range of $1.34 to $12.45 a share).
  • Sunwin International Neutraceuticals (OTC: SUWN). Another Chinese company that is involved in selling Stevia based products as well as herbs used in traditional Chinese medicines is Sunwin International Neutraceuticals. However and while Sunwin International Neutraceuticals has not faced the same types of allegations as GLG Life Tech, its still a Chinese stock and would face the same problems with Chinese consumers as GLGL. On Friday, Sunwin International Neutraceuticals rose 9.18% to $0.345 (SUWN has a 52 week trading range of $0.21 to $0.40 a share).
  • Tate & Lyle PLC (LON: TATETATYY). With its headquarters on Sugar Quay Lower Thames Street, Tate & Lyle PLC has two operating divisions: Speciality Food Ingredients (SFI) and Bulk Ingredients (BI). In 2010, Tate & Lyle PLC sold its iconic sugar business to American Sugar Refining but the company kept Splenda – its sucralose zero-calorie sweetener. On Friday and on the London Stock Exchange, Tate & Lyle PLC loss 0.67% to £644.65 (TATE has a 52 week trading range of £608 to £683 a share), putting it out of reach of most investors but on the OTC, TATYY rose 5.35% to $41.35 (TATYY has a 52 week trading range of $31.16 to $43.25 a share).

What is Stevia Corp. (OTC: STEV)?

Stevia Corp. is a Farm Management company focused on Stevia agronomics that ranges from Stevia plant breeding to agricultural practices to post harvest techniques. Stevia Corp’s headquarters is in the USA while its R&D operations are in the USA, Singapore, Vietnam and Indonesia. Stevia Corp’s farm operations are located in Vietnam and Indonesia while farming operations in the USA are still in the planning stages.

Stevia Corp is the only company that delivers a full spectrum of agricultural consulting and related solutions for Stevia growers. Specifically, Stevia Corp. invests heavily in R&D and IP acquisition as well as manages its own propagation, nursery and plantations plus the company provides services to contract Stevia growers and other industry growers.

For now, Stevia Corp. has a supply contract in place with PureCircle, the Stevia industry’s leading refiner, to purchase Stevia at a fixed price. This contract greatly enhances Stevia Corp’s ability to plan for the long-term.

Moreover and once Stevia Corp. is able to produce enough Stevia to support an extraction facility, it may begin negotiations with PureCircle or another major refiner to form a joint venture to build and operate an extraction facility near where Stevia is grown. Stevia Corp. is also considering private labeling its own Stevia products in order to build up its own brand.

On Friday, Stevia Corp. rose 3.09% to $1 and has a 52 week trading range of $0.01 to $1.60 a share.

The Bottom Line About Stevia Corp.

Of course, there is always a risk that scientists will find some type of health risk associated with Stevia. Nevertheless and with Americans eating and drinking an average of 22.2 teaspoons of sugar a day, sugar and sweetener stocks Stevia Corp. (OTC: STEV), Imperial Sugar Company (NASDAQ: IPSU), GLG Life Tech (NASDAQ: GLGL), Sunwin International Neutraceuticals (OTC: SUWN) and Tate & Lyle PLC (LON: TATE; TATYY) will probably never run out of customers for their products.

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China Stocks Cheapest ‘I’ve Ever Seen’: Index Pioneer

Chinese stocks are extremely undervalued and U.S. investors should heavily increase their exposure to benefit from the emerging market’s long-term growth, says Burton Malkiel, author of the financial classic “A Random Walk Down Wall Street.”

The economist was referring to a slide showing several valuation metrics—from the price-to-earnings and price-to-book ratio—for the AlphaShares family of China indexes he created.“These are the most attractive multiples I’ve ever seen,” said Malkiel, 79, who pioneered the indexing investment philosophy, at a speech Wednesday for Guggenheim Funds at the New York Stock Exchange.

Malkiel helped forward the efficient market hypothesis—that prices of stocks immediately reflect all public information—with his 1974 classic now in its 10th edition. The professor of economics at Princeton argues that this hypothesis means investors are better off buying and holding a large basket of stocks through indexing, rather than relying on active fund management. He turned his sights to China about eight years ago.

As one would expect, Malkiel made clear that he wasn’t making a market timing call to buy China immediately, but rather saying that investors will be forced to increase their exposure to the world’s most populous nation over time as its economy transitions to more domestically focused and its currency begins to rival the dollar.

Right now, a typical institution holds just a 1.7 percent exposure to China, according to Malkiel, based on an average 10 percent exposure to emerging markets and China’s 17 percent chunk of the emerging markets pie.

Their overall exposure “should be at least 9 percent to better match China’s contribution to global GDP,” said Malkiel. “And that’s conservative. It really should be 12 percent.”

The economist, who is also chief investment officer at indexing firm AlphaShares, said the best way to capitalize on his China investment thesis is through Renminbi bonds or Chinese equities.

China’s stocks exploded higher this week after the government signaled there may be an end to monetary tightening. A European bailout plan on the table also soothed fears of slowing exports.

“These buildings may not be standing in five or 10 years,” said Jim Chanos, president of Kynikos Associates, in September. “You’re talking about an economic system where profits are not maximized for the largest economic actors. You’re talking about a history of horrible lending. You’re talking about a system in which the export-driven model hasn’t been changed by Western demand.”To be sure, not everyone is as enthusiastic as Malkiel. Detractors point to a build out in infrastructure to the center and West of the country that is taking place before a migration in the population. Not to mention rampant corruption and accounting practices.

But Malkiel, who remarked, “Chanos is just talking his book” at the speech, believes China is fostering faster growth by building the infrastructure ahead of the population migration and business growth. Behind his bullish thesis is the belief that domestic consumption will one day account for as much as 50 percent of the country’s GDP.

Sticking to his broad exposure roots, Malkiel has developed several indexes at AlphaShares that hold many more stocks than other Chinese indexes, which tend to be heavily weighted toward a few companies in the energy and finance sector.

Guggenheim, which sponsored his talk, offers exchange-traded funds that track the Malkiel indexes.

They include the Guggenheim China All-Cap [YAO  24.3699    -0.1701  (-0.69%)   ]China Small Cap [HAO  22.42    0.08  (+0.36%)   ] and the China Technology[CQQQ  24.69    -0.289  (-1.16%)   ].

What’s more, the firm has ETFs that give the regular investor direct exposure to Chinese bonds via the Yuan Bond [RMB  24.86  —  UNCH    ] and a direct hit on Malkiel’s currency appreciation thesis through the Chinese Renminbi Trust[FXCH  79.15  —  UNCH    ].

“Some people think the Yuan [CNY=X  6.357    -0.002  (-0.03%)   ] is as much as 20 percent undervalued,” said Jeff Kilburg, a trader with Treasury Curve who attended the speech. “If Malkiel is right and China continues to allow it to appreciate at least 5 percent a year, that will attract more and more investors. And the country’s bond market is in its infancy right now.”

Given the U.S. budget deficit and growing debt load, Malkiel believes that China’s currency could eventual rival the dollar. They desperately want the benefits that the U.S. has with being the world’s reserve currency and being able to print your way out of most problems.

“They dislike that immensely,” said Malkiel. “They call it ‘the exorbitant privilege.’”

By: John Melloy
Executive Producer, Fast Money & Strategy Session

John Melloy is the Executive Producer of Fast Money. Before joining CNBC, he was an editor for Bloomberg News, overseeing the U.S. Stock Market coverage team. Click here to see his full bio.

Visit Our Website at http://www.cdii.net

Visit Us on Facebook at http://www.facebook.com/CDII.ChinaDirectIndustriesInc

Current Market Price for Mg min 99.8%


FOB China Port* Week 10/17/2011 to 10/23/2011 $3130 per ton
Ex Works Shanxi** Week 10/17/2011 to 10/23/2011 RMB 17,300 per ton

*FOB China Port – Based on ex-work basis, plus inland freight, misc port expenses,

and 10% export tariff.
**Ex Works Shanxi – Includes 17% VAT

 

 

Disclaimer: Amounts reflect the average weekly pricing obtained from third party sources and do not reflect IMG’s actual sales prices which may vary.


CDII Symbol

CDII

China Direct Industries, Inc.

China Direct Industries Completes Initial Rollout of UFIDA NC Enterprise Resource Planning (ERP) System

DEERFIELD BEACH, FL–(10/18/11) – China Direct Industries, Inc. (“China Direct Industries”) (NASDAQ:CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that it successfully completed implementation of its new UFIDA NC Enterprise Resource Planning (ERP) financial account software system at Shanxi Gu County Golden Magnesium Co., Ltd. (“Golden Magnesium”), its wholly owned subsidiary.

 

The NC ERP system is a comprehensive financial accounting software suite provided by UFIDA Software Co. Ltd., the largest enterprise resource management solution provider inChina. Once fully implemented, this web based ERP system will enable management to better manage its magnesium operations through a real-time centralized financial data management system.  The NC ERP system enables multi-currency financial data capability as well as multilingual user interfaces and reports functionality making it the ideal financial management tool for China Direct Industries as it builds its operations in theUnited States,China, andLatin America.

 

Management expects to continue the implementation of the system with its other magnesium subsidiaries in the coming months. Full implementation of the ERP system will help management improve corporate forecasting, overall accounting practices, and financial transparency as China Direct Industries grows its operations in the coming years.

 

Commenting on the successful ERP implementation at Golden Magnesium, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated “The system-wide rollout of this ERP system is critical for us as we move to complete our magnesium consolidation plan and successful implementation at Golden Magnesium is a significant milestone in this important process.  The NC ERP system will provide for greater financial transparency and  enable management to rapidly respond to changing business conditions to maximize overall financial performance throughout our organization. ”

 

 

About China Direct Industries, Inc

China Direct Industries, Inc. (NASDAQ:CDII), is a U.S. based company that sources, produces and distributes industrial commodities in China and the Americas and provides business and financial consulting services. Headquartered in Deerfield Beach, Florida with corporate offices in Shanghai, China Direct Industries’ unique infrastructure provides a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit http://www.cdii.net.

 

DISCLOSURE NOTICE:

 

In connection with the safe harbour provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations concerning our ability to complete implementation of the NC ERP software in our Magnesium segment and our ability to operate and maintain this system.

 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Report on Form 10-K for the fiscal year ended September 30, 2010.

 

Contact Information:

 

ChinaDirect Industries, Inc.

Richard Galterio or Lillian Wong

Investor Relations

Phone: 1-877-China-57

Email: richard.galterio@cdii.net

lillian.wong@cdii.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

China Direct Industries to Present at the Sixth Annual Singular Research “Best of the Uncovereds” Conference October 26, 2011

DEERFIELD BEACH, Fla., Oct. 17, 2011 /PRNewswire/ — China Direct Industries, Inc. (“China Direct Industries”) (NASDAQ:CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that it will be presenting at the Singular Research sixth Annual “Best of The Uncovereds” Conference on Wednesday, October 26th at the Luxe Sunset Boulevard Hotel in Los Angeles.

Mr. Richard Galterio, Vice President of China Direct Industries, is scheduled to present at 11:30am ET (8:30am PT).  The Company will also provide a live webcast of this presentation at http://www.singularresearch.com.

During the remainder of the day, Mr. Galterio will meet with investors during a series of one-on-one breakout meetings at the conference. For more information on the conference or to schedule a one-on-one meeting, please contact Singular Research.

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ:CDII – News), is a U.S. based company that sources, produces and distributes industrial commodities in China and the Americas and provides business and financial consulting services. Headquartered in Deerfield Beach, Florida with corporate offices in Shanghai, China Direct Industries’ unique infrastructure provides a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visithttp://www.cdii.net.

About Singular Research/ http://www.singular-research.com/index.htm

Singular Research aims to be the most trusted supplier of independent, trusted, single-source research on small-to-micro cap companies to the small-to-medium sized Hedge Fund manager. We will provide quarterly updates for 20 to 50 companies and make recommendations. How do we strive to achieve our Mission/Goal: Find under or overvalued securities: Our goal is to provide initiation reports and quarterly updates for approximately 40 micro to small cap companies. In most cases, our analysts research companies that are not covered by any other firms.

 

  • We provide Honest Advice: Our Independent analysts have no financial interest in the stocks we cover. Analysts are compensated based on the accuracy of their research calls not through trading commissions or potential deal flow.
  • Cumulative Track Record: Since inception in August 2004 Singular Research is up 151.53% throughDecember 2010, compared to the S&P 500 at 13.90%

 

 

Contact Information:

China Direct Industries, Inc.
Richard Galterio or Lillian Wong
Investor Relations
Phone: 1-877-China-57
Email: richard.galterio@cdii.net
lillian.wong@cdii.net

Current Market Price for Mg min 99.8% | Week of 9/30/2011

Current Market Price for Mg min 99.8%

FOB China Port* Week 10/3/2011 to 10/9/2011 $3180 per ton
Ex Works Shanxi** Week 10/3/2011 to 10/9/2011 RMB 17,700 per ton

*FOB China Port – Based on ex-work basis, plus inland freight, misc port expenses,

and 10% export tariff.
**Ex Works Shanxi – Includes 17% VAT

Disclaimer: Amounts reflect the average weekly pricing obtained from third party sources and do not reflect IMG’s actual sales prices which may vary.