Just quick summary to bring this to your attention; more detail will hopefully follow.

This stock floated yesterday at 10p and has since doubled. It has, needless to say, suddenly become very popular on another BB.

The company is profitable already and trading on an estimated (by yours truly) forward PE for the current year of 9 at SP 20p. EDIT: Hoodless Brennan estimate EPS for Full Year 2006 will be 2.18p - see article (link below).

Free float is 11.4% of the 81.2 million shares in issue - most are held by the directors.







Extremely useful Investegate article LINK


Extremely useful Hoodless Brennan analysis LINK


PDYOR, etc.

I've been having in depth discussions at work with a few PI's and they are also into this one. Apparently some of the more experienced traders on ADVFN are talking of 3 per share. Question is, how soon may we see this, probably at least after EU agreeing trading, and entry into the US. Another cause for concern is the length of time of tie ins for the board, any selling by them will increase the number of shares in free float causeing a dilution effect on the SP. As previously posted this is currently under most peoples radars, but not for long. Soon we shall see the hot money coming in. This will be followed by institutions as the market cap rises, this in turn will create plenty of trading opportunities as they like to buy in cheaply. I will almost definately top up my holdings on Monday, but feel that there will be a bigger queue than usual. This will move up again next week, but how quickly?

don't ever say i don't listen or pay attention!!
in a dire market yesterday (monday likely to be no better), trade in SAIH was 1.6m shares against a 3 month average of only 148k.
sight unseen the conclusion would be that sp totally tanked, whereas it actually rose 7p (25/30% if you wish).
what is not obvious to me, but someone who perhaps uses L2 may have a clearer view, is where all these shares (a) came from and (b) where they went.
for example, one sometimes sees hedge funds and similar swapping their holdings between their own funds - i.e. an internal move.
i also don't have a calc to hand (may work it out later), but what % of the total free float does 1.6m shares represent?

http://www.growthcompany.co.uk/recommendations/257689/taihua.thtml


Taihua - SPECULATIVE BUY

Companies: TAIH

27/07/2007

China-based Taihua, a producer of clinical-grade anti-cancer compounds, plans to inflate its sales and margins by entering the European market.

The group, where co-Viagra inventor Dr Mike Wyllie is a director, has been producing anti-cancer agents paclitaxel and homoharringtonine for over a decade. Management claims the difference between Taihua and competitors is the high purity of its production 91.7% meaning little or no further refinement is required before clinical use.

These agents are both derived from yew trees, bought from local farmers, and a single tree is needed to gain enough ingredients for one dose. In 2005, Taihua bought land to grow its own seedlings and has 60,000 young trees ready to harvest in 2009, this will present even more competitive advantages.

Paclitaxel has passed all necessary regulatory hurdles around the world, but for Taihua to supply to pharma companies in the 1.25bn European market it will need to garner its own EU approval. Further on, it will go through the same process for homoharringtonine, which has anti-leukaemia properties, and even further on an own-brand injection is planned.

A second leg to the business is its traditional Chinese medicines division, which concentrates solely on the domestic Chinese market, and as yet provides only a small portion of sales.

Brought to AIM last December by WH Ireland, the cash-generative business grew pre-tax profits by 74% in 2006 to almost 2m on the equivalent of 3.4m turnover. Sales, currently focused on China, Russia and South America, will soar if EU approval for paclitaxel is granted.

The shares have already rocketed from their 10p issue price and look like providing an interesting speculative ride.

Oliver Haill

Market cap: 23.35m
PE Forecast: n/a
Share price: 28.75p

oilyrag..


directors are tied in until December before they can at offload any at all..
if you read the AGM notes, they were questioned on the low wages they take from company... they said they have options on shares, and have a 3 year plan of huge growth of the investments in their own company and moving products into EU and USA..

I guess taking no wages leaves extra profit in the accounts which adds to the growth etc etc...

but is there any real incentive for them not to offload market-affecting slabs come December?

the price rise .. and the the likes of the article above.. are not factoring the move into USA .. it wasnt mentioned in Results.. or at float.. but has been mentioned at AGM... plenty more potential

maybe.. maybe not..

I guess they might want a BMW for Xmas? ;) .. but Im damn sure if they have a 3 year plan to become a major player in Europe and eventually USA.. they wont be doing a Gordon Brown and selling at the bottom lol

wrong question but got the info

US is much much tougher too

madoctor..

courtesy of JTCod on advfn..

take a look at BIP

http://www.bioxelpharma.com/docs/RA2006/BioxelPharma-2006-Annual-Report.pdf

not a Chinese co. , but have recently been given EU go ahead with no problem at all even though the purity of BIPs product is 96% against TAIH's which is 99.7%.. bodes well for TAIHs EU application..

Also note a question to the board from the AGM notes posted earlier on this thread..

Q.Chinese companies have bad reputations in terms of Drugs, what do you see yourself as

A.We are a WESTERN PHARMA COMPANY based in the PRC BUT operating to WESTERN STANDARDS at all levels. Very improtant to realise we are accountable and transparent in everything we do. And report to western standards, not PRC standards.

infact read JT's notes.. was a good read just after results...

http://www.advfn.com/cmn/fbb/thread.php3?id=13384181&from=285

bip calling their products drugs so i take it they have been tested

report writing so small on acrobat i can hardly read it!

very interesting reading but suggests to me taih have no intellectual property and the hope is that taih can produce cheaper than others or am i wrong?

thanks for taking the trouble to reply

i know i am a numbskull, but going back to the Q i raised on post 115, i reckon there are barely 10m shares for free trade .... that being so, it would seem that something like 16% of these were traded on friday! ....... surely an awful lot must have been internal fund x-trades, perhaps to massage their performance figures - i.e.seemingly to realise profits

Cynic you are right to question what appears to be yet another ramp of AIM floated Chinese companies.

i didn't actually say that, but i do love the following extract from post 123 ...... "We are a WESTERN PHARMA COMPANY based in the PRC BUT operating to WESTERN STANDARDS at all levels." ...... politely put, very much politician's speak!

I dont think its a ramp, they genuinely had a huge growth in the last results which the market had not priced in since the float.. until any of the speculative news like Europe etc come firm then I wouldnt expect us to break high 30s... high 30s is fair value for the shares available..

maddoctor.. you can zoom in on acrobat you know!

dynamix , thanks for that info , rarely use it but will not have to sqint next time

always good to see the derampers on board so early, watch the bitterness, they've either not bought or sold too early - usually took their 150 profit and now can't stand to see others make lots of money. The ones who have never actually held the stock are, in my eyes the real sad cretins. If only they spent their time researching stocks instead of jumping on b.boards of winning stocks trying to trick people into thinking they are concerned!! How sad are these individuals?? What do they get out of life?? They're not short, the stock cannot be shorted. I remember a certain poster on SOLA at 125p saying it was all too good to be true. Parasites.

do hope that is not aimed at me, for if so, totally unwarranted .... anyone is perfectly entitled to their view and opinion, whether or not it falls in line with that of the sheep .... as for "research", imo it is often highly over-rated, always depending on what one means by the word; the only thing of interest is whether or not the share is likely to rise or fall, the view expressed hopefully being backed with some kind of logic .... btw, i suspect one could quite easily short this stock, for it only requires a holder who is prepared to lend it.