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GTSF IC Stock Presentation - Fuqi International

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					Fuqi International Inc.




     By: Collin Rose and Trippe Buis
                Business Summary
   Stock Symbol is (FUQI) and is traded on NASDAQ
   Sector = Consumer Goods (as classified by Yahoo! Finance)
   Industry = Recreational Goods, Other (as classified by Yahoo! Finance)
   Was originally established in 2001 as Shenzhen Fuqi Jewelry Co., Ltd
    in China
   Was incorporated in the United States in September 2004 in Arizona
   Experienced a reverse merger in November 2006 and officially became
    the parent company of Fuqi International Holdings Company, Ltd.
    (British Virgin Islands)
   Fuqi International Inc. was officially incorporated in its present form on
    December 8th, 2006 in Delaware.
   As it stands currently Fuqi International Inc. is recognized as the parent
    company of its two wholly-owned subsidiaries:
            Fuqi International Holdings Company, Ltd. (British Virgin
             Islands)
            Shenzhen Fuqi Jewelry Company, Ltd. (China)
             Business Description
 Their business consists of designing, developing, promoting, and selling
  precious metal jewelry
 Their range of jewelry includes jewelry made from gold, platinum, Karat
  gold, diamonds, and other precious gems.
 Their design database has over 30,000 different products
 They sell their products directly to consumers and also to other
  retailers, wholesalers, and distributors.
 As of December 2008, Fuqi International Inc. had 69 jewelry retail
  counters and stores in China
 Their distribution network allows them to reach almost every province in
  China
 The company also has a custom-order sector to its business
                       Recent News
•   Schaeffer’s Research – 1/11/2010
     – Stocks Advancing Amid Heavy Short Interest - The PMI Group Inc,
       AmeriCredit Corp, United States Steel Corp, Fuqi International Inc,
       Garmin Ltd
•   Fox Business – 1/8/2010
     – Fuqi to Exclusively Commercialize, Manufacture, Distribute and Market
       Popular Chinese Animated Cartoon Jewelry Product
•   PR Newswire – 1/6/2010
     – Fuqi International Announces Participation in January Investor
       Conferences
•   Schaeffer's Research – 12/28/2009
     – Stocks Showing Unusually Heavy Volume - Golar LNG Ltd, Hoku
       Scientific Inc, SanDisk Corp, Fuqi International Inc, Universal Display
       Corp
       Macroeconomic Overview (in China)
News
• China in 2009 released a $586B stimulus package
• China saw its year over year economic growth rate rebound to 8.90% in Q3
  of 2009
• China saw its exports increase for the first time in over a year in December
• China just raised its interest rates on Thursday (the first time since August)
  in an attempt to prevent too much liquidity
• China has also seen its money spent on imports rocket as the demand for
  commodities such as crude oil has increased as of late
What it all means
• China is clearly undergoing a lot of economic growth and is clearly leading
  the worldwide recovery
• As with any country that undergoes a lot of growth China is looking to curb
  inflation and has shown that willingness by raising its interest rates
• Due to the falling dollar (and the falling Yuan consequently) it looks like the
  Yuan will eventually have to be appreciated to prevent consumer and
  company consumption from dropping
Competitive Analysis
Fundamental Analysis
Annual Income Statement
Quarterly Income Statement
Annual Balance Sheet
Quarterly Balance Sheet
Annual Cash Flow
Quarterly Cash Flow
1-Year Charts
Long-Term Charts
                         Scenarios
Best-Case
• China continues to see sustained economic growth and recovery
• Fuqi International Inc. uses its accumulated financing to expand its
  business further
• This expansion leads to Fuqi International Inc. further increasing its
  share within the Chinese jewelry industry
Worst-Case
• China’s economy overheats, inflation takes hold, prices rise, and
  domestic consumption takes a large hit
• Fuqi International Inc. fails to effectively use its built up financing
  and sees itself lose some of its share in the Chinese jewelry industry
                   Recommendation
•   Buy!!!
•   Seeing where the price sits now (19.18), the stock would seem to be at a
    very good value position for investing in
•   Fuqi International Inc. has strong financials, has ratios that compare
    favorably with other similar companies, and has seen growth in a bad
    economy over the last few years
•   Fuqi International Inc. also has the advantage of being in China where the
    recovery seems to be stronger than domestically within the US.
•   The one thing to keep in mind though is that Fuqi International Inc.’s annual
    and Q4 earnings will be out soon and it may be worth waiting to examine
    them to break down the company even further

				
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posted:10/11/2011
language:English
pages:17