Topic: How To Invest

Pat: What are your thoughts on China Marine Food Group as an investment? Thanks in advance.

Article Excerpt

China Marine Food Group, $3.09, symbol CMFO on Nasdaq (Shares outstanding: 29.0 million; Market cap: $83.4 million; www.china-marine.cn), makes “Mingxiang” brand seafood-based snack foods and “Hi-Power” marine algae-based beverages. The company also distributes fresh and frozen fish. In the latest quarter, the company got 74.5% of its revenue from selling seafood snack foods. These consist of its 29 different Mingxiang-branded seafood jerky snacks, which it sells to customers at over 2,900 stores, including supermarkets and convenience stores. China Marine bought Hi-Power in early 2010. Hi-Power beverages are now sold in 14,000 stores, from chains like Walmart and China-based supermarket Trust-Mart, to convenience stores, bars and restaurants. In the three months ended March 31, 2011, China Marine’s revenue rose 35.7%, to $26.7 million from $19.7 million a year earlier. Earnings rose 43.1%, to $5.6 million from $3.9 million. Earnings per share rose 18.8%, to $0.19 from $0.16, on more shares outstanding. The company holds cash of $35.3 million, or $1.19 a share, and…