| > > AMI Research Initiates Coverage of Jade Art Group ()
Posted by tradeinstock on 2008-06-27 02:29:47 ( Scores: 0.00 )
Long-term Distribution Rights to One of Largest Jade Mines in China Represent Strong Barriers to Entry
KEY LARGO, Fla., June 17 /PRNewswire-FirstCall/ -- AMI Research, a division of Hawk Associates, announced today that it has initiated research coverage of Jade Art Group, Inc. (OTC Bulletin Board: JADA - News) with an accumulate recommendation and a $7.49 price target. This 30-page report by AMI analyst, Saurav Chakraborty, can be accessed from the AMI Research website, http://www.amistockreports.com
Jade Art Group is a Chinese company engaged in the wholesaling and distribution of raw jade, currently used in high-end jewelry and sculptures with potential future applications in markets ranging from construction material to furniture. In January 2008, the company secured the distribution rights to the SheTai jade mine in Inner Mongolia for a tenure of 50 years. According to a recent survey by the Inner Mongolia Geological Institution, the mine has proven and probable reserves of 6.1 million tons, which at recent prices would value the mine's reserves at approximately $16 billion USD.
Jade Art Group reported first quarter revenue of $10.7 million. Shipments of raw jade during the quarter reached approximately 3,385 metric tons, with an average sales price equivalent to approximately $3,150 per metric ton. Net income from continuing operations for the first quarter was $6.0 million, or $0.03 per diluted share. To date in 2008, Jade Art Group has entered into six sales contracts for SheTai jade, representing a total value of approximately $42 million.