Today, DEYU looks ready to continue the up move, this time supported by news and promotions.
The news came up this morning to announce that the company will begin offering a new product line under the DEYU brand name featuring a variety of noodle products, thus entering a new product sector.
The announcement sounds optimistic enough to encourage traders, however, there is another factor to pump up DEYU even more. Namely, promotions.
The campaign was held early this morning and cost $5,000 so far. What is more interesting, though, is that the promotion involved no third party, meaning that DEYU itself has paid the campaign.
Deyu Agriculture Corp. is a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in Shanxi Province of the People's Republic of China. During the past month, there's been high trading activity with the company's shares of common stock in connection with some agreements. Nevertheless, the management was satisfied with its financial condition.[BANNER]
The team states they believe that their current levels of cash, cash flows from operations, and bank, related party and unrelated party borrowings will be sufficient to meet their anticipated cash needs for at least the next 12 months. However, DEYU may need additional cash resources in the future if they experience changed business conditions or other developments.
Additionally, the company may also need additional cash resources if they find and wish to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. Thus, DEYU may seek to issue debt or equity securities or obtain a credit facility.
The only problem here is that any future issuance of equity securities could cause dilution to DEYU shareholders and could increase their debt service obligations.