Has Ah Mah given the orders to mop up Yamada shares? The stock has cheonged 2 cents to hit 25.5 cents. It's the vol that is eye-popping at 64 million as I eat roti-prata with (Yamada?) mushroom sauce
42 milion shares were transacted off market --- sold by Sam Goi to Yellow pages at 27.5c apiece in accordance with an earlier agreement.
The number of Yamada shares transacted in the open market was around 22 million.
Sam Goi is the winner. Because Yamada Green is a S-chip, he wanted a much larger amt of safety margin. Yamada gave in and offer him 12 cents (for 82.2 mil shares). Then Sam Goi felt unsecure. He managed to "CONvinve" (Con + Vince) Global Yellow to buy over some of his stake.
By doing so, Sam Goi has realized his part of gain and Global Yellow Page becomes the "last sucker" in the musical chair...
Very ingenuous or disingeneous move by Sam Goi (depending on how u might want to see it). Afterall, he is a "S-chip" himself too from Mainland China..
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The most recent results showed that profit margin is being badly eroded since Yamada is just a price taker. There are many other Shitake growers in China. U can simply do a Google Serach..
Lower GP and GP margin mainly due to: (1) the lower yield resulted from unfavorable weather condition in the cultivation sites during October to December 2012. (2) the rising raw material cost of synthetic logs whereas the average selling price of edible fungi did not increase in tandem. Cost of synthetic logs had been on rising trend since year 2008 at a pace of approximately 10% year on year, whereas the average unit selling price of fresh shiitake mushroom are largely market driven.
The business is challenging -- price taker, not price setter, for its products.
For its raw materials it cannot help but pay higher and higher prices every yr.
The gross profit margin for our self-cultivation business segment decreased from
approximately 39.9% in FY2012 to approximately 18.2% in FY2013 which was
mainly due to the rising raw material cost of synthetic logs whereas the average
selling price of edible fungi remained the same as last year.
