Stock Guru Profile DRGG
Equity Stock Analysis Report on Dragon International
A look at the Equity Stock Analysis Report on DRGG
Stock Guru continues its review of DRGG’s letter of intent to acquire Hainan Jinguang Pharmaceutical Company, Limited (”Jinguang”), a distributor and manufacturer of Chinese herb medicines. Jinguang’s focus is traditional Chinese Li medicine, one of the major traditional Chinese medicinal herbs. Jinguang has developed its own research and development center under GLP standards, a planting farm under GAP standards, manufacturing facilities under GMP standards, and a dedicated salesforce under GSP standards.
It is important to understand that while traditionally herbal remedies have not been protected by intellectual property laws this may be changing. Developing countries are trying to curb the illegal appropriation of traditional knowledge. Countries and indigenous communities are saying that we need new rights so that they can now have a legal protection of their traditional knowledge.
Francis Gurry, deputy director-general of the World Intellectual Property Organization, says traditional culture, folklore and medicines have enriched humanity but, finding an international solution to protecting traditional knowledge is very complex. An international binding legal agreement is necessary and important. Pharmaceutical companies make billions of dollars from top-selling drugs. But, the communities that harbor the traditional knowledge and genetic resources from which these drugs are made, reap few benefits.
The World Intellectual Property Organization, which oversees patents, trademarks and copyrights, has been working for the past five years to reach an agreement that would help spread the wealth from products stemming from traditional resources.
The World Intellectual Property Organization supports the position that it is in the interest of those that use traditional knowledge to eventually strike a deal. You may link here to their most recent publication on this issue: Traditional Knowledge, Genetic Resources and Traditional Cultural Expressions/Folklore
Pharmaceutical companies invest billions of dollars in research. They do not want to find themselves in a situation of legal uncertainty when they have a successful result. This alone, it says, is reason enough for them to reach an accord that will provide them with the legal framework they need and, at the same time, will recompense the holders of traditional knowledge.
The Amazon jungle, the forests in Africa and Asia contain many hidden treasures. Their plants, trees, and herbs provide the basis for most of the world’s disease-fighting drugs and many of its cosmetic and beautifying remedies. The anti-cancer drug Taxol and the anti-malaria drug extracted from the Chinese herbal plant, Artemisin offer hope to many.
Over the past two years, Jinguang has invested more than $4 million in building farming and manufacturing facilities, including 110 acres of land and GMP manufacturing facilities. It is expected that Jinguang will generate approximately $15 million in annual sales in 2007, which is projected to grow to approximately $29 million in annual revenues in 2008. While terms of the agreement were not disclosed, Dragon International will begin due diligence on Jinguang.
DRGG generated $1.227 million in operating income, a 620% increase compared to $175,000 in fiscal 2005. Excluding stock-based compensation and non-cash charges related to Dragon’s July 2005 debt financing and its conversion into equity this past fiscal year, EPS would have been $0.02 per share. The Company ended the fiscal year with stockholder equity of $8.246 million, approximately $0.14 per share, a record level for the Company. For more information about DRGG financial performance, review the DRGG 10K filing with the United States Securities and Exchange Commission.
It is for all these reasons that Equity Stock Analysis has placed a sixty cent target on DRGG. Be sure to read the report: Equity Stock Analysis Report on DRGG
Source: DRGG
Contact:
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
SOURCE: Dragon International Group Corp.
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.
SafeHarborand 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.
StockGuru.com is owned and operated by Pentony Enterprises LLC, 9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (214) 458-4258. Web: StockGuru.com. Email: Publisher@stockguru.com .