Stock Guru Profile DRGG
Dragon International, Inc. filed a 10Q on October 13, 2006.� The 10Q reflects a company that is well integrated from manufacturing to advanced product design and sales. It is important to understand the company and the environment in which it operates.
A brief examination of the macro economic picture of China follows. We decided to release this on a Sunday to give you time to absorb a longer post. The bottom line is Dragon International finds itself squarely positioned in an industry that China has deemed crucial to its growth and there are benefits associated with that industry for Dragon International.
The paper and pulp industry in China is a focus of macroeconomic development. China has micro-managed its macro picture. This is because it wants strong locally owned businesses that are fundamental to its progress. Pulp and paper has been targeted as one of these businesses. In China not only the central government offers benefits to specific industries but local governments do as well. DRGG is located in a friendly business region which offers financial incentives to their business.
China saw its global prestige and trade volume soar after it joined the WTO in 2001. The entrepreneurial spirit and capitalist acumen of Chinese businessmen has already become a well respected force in global business. To secure its country’s membership China lowered tariffs, removed barriers to foreign retailers and banks, strengthened the judicial system and cracked down on corruption. China has a one year market plan and a five year market plan for their economy which balances market principles with developing strong and locally owned businesses.
There are strong indications that China is working according to market principles. Price reform is essentially completed, leaving only a few strategic goods in the control of state agencies.
Moody’s has raised its outlook on China’s A2 long-term foreign currency credit rating to positive, from stable. The revision was attributed to China’s bulging foreign exchange reserves which, at an estimated US$941.1bn, are more than three times the size of its foreign debt, along with significant export earnings that have caused the balance of payments surplus to surge. The move, which came despite concerns over the extent of China’s non-performing loans, could potentially help Chinese banks to raise funds more easily.
Today, the private sector contributes to approximately two thirds of China’s GDP; foreign invested enterprises contribute about one third to China’s gross industrial output. Products valued at about one third of China’s GDP are sold on the global markets and stand the test of global competition.
There is a comprehensive set of five-year and single-year plans covering all strategically important aspects of the Chinese economy of which pulp and paper are deemed to be strategically important. The latest Five-Year Plan covers the period 2006-2010. These plans are much more flexible than the directives issued in former periods. They have a significant impact on the top management of China’s leading enterprises. Based on the premise that market forces should be the dominant coordination mechanism for day-to-day business interaction, the central government understands itself as the strategic mastermind of national economic development.
Dragon International by being a Chinese owned company is the beneficiary of the macro economic plan and will continue to benefit from its position just south of Shanghai as it expands its business into India.
DRGG – Dragon International Group Corp.
Bldg 14, Suite A09
29 Dongdu Road
International Trading Center
Ningbo, 315000 China
Website: http://www.drgg.net
Phone: 86-574-56169308
Fax: 86-0574-56169378
Contact:
Andrew Brown
ROI Group Associates, Inc.
Tel: 212-495-0202
Email: abrown@roiny.com
SOURCE: Dragon International Group Corp. and National Development and Reform Commission (NDRC), which has evolved from the former State Planning Commission, and the State Council’s Development Research Center
About Dragon International Group Corp. Dragon International Group Corp. (OTCBB: DRGG) is one of China’s leading manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world’s largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
Safe Harbor and Forward Looking Statement: Certain statements set forth in this article constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements, including the Company’s ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company’s business and financial results is included in the Company’s filings, available via the United States Securities and Exchange Commission at http://www.sec.gov/.
Disclosure: Pentony Enterprises LLC was compensated $22,500 from non-controlling third party ROI Group Associates for profile coverage. Pentony Enterprises LLC is not a registered investment advisers or broker/dealers. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
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