Saturday, June 23, 2007

Migao (MGO-T)

I will continue yesterday's theme of investment opportunities in the Chinese agricultural sector, by bringing to your attention, Migao (MGO-T), which is another key holding in my portfolio.

Migao produces two specialty potash-based fertilizers (potassium nitrate and potassium sulphate) for the Chinese agricultural market. According to their web site, "There is very little naturally occurring potash in China. Of the three principal fertilizer nutrients (nitrogen, phosphate, and potash), potash is the least readily available in the country. Migao's patent-pending technology allows the Company to offer a consistent and reliable supply of high quality potash-based fertilizers which are ideal for high-value crops such as fruits and vegetables, tobacco, and cotton."

In the second quarter, the company achieved earnings of $3.3 million ($0.10 per basic share), and like Hanfeng, Migao is focused on increasing their production capabilities to meet the demand.

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