It seems that these days investors of China Marine Food Group Ltd (AMEX:CMFO) stock hooked the “small gold-fish, whose eyes shone as brightly as diamonds”.
Moving upwards in a yet unconfirmed uptrend, CMFO shares rose almost 10% since Monday.
But the announced company’s financials attracted even more speculators than fans of fundamentals.
The volume traded these days, exceeding the average for the company, also confirmed investors’ huge interest towards stock.
This Monday, CMFO presented its optimistic financials, which were strongly implying good perspectives for the company on the long run.
In addition to the reported increase in revenues and net income, CMFO managed to raise respect among investors with its assets, exceeding thirteen times its liabilities.
For the six months ended this June, the company noted net income per share of $0.41, while it was $0.30 for the same period last year.
Only from Algae-based beverage products CMFO generated $10,56 million in revenue during the first half of this year. CMFO purchased the beverage company Xianghe at the beginning of the year, entering thus in that promising new business segment. Xianghe is a Fujian based manufacturer of the branded Hi-Power algae-based soft drinks.[BANNER]
CMFO also plans to build cold storage facilities with a capacity of approximately 20,000 tons, to be located near the fishing port. The company intends to finance the nearly $20.0 million in land use rights and construction costs from available funds and expects to run the new facility in the middle of the coming year.
Although the company published its prospectus for the sale of 12,013,568 shares of common stock by certain selling shareholders, which will increase enormously the share supply, at the moment CMFO stock looks like the small gold-fish that can fulfill all investor wishes.
Yesterday, CMFO stock noted its next in row 4.56% price increase, closing at the sacral $5.4999 level. The shares were valued 57% less than their 52-week high.
