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High Cost of Chinese Food Fueling CAGC Profits


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With 1.3 billion people (almost five times the population of the United States) and an economy that grew by 11.4 percent in 2007 — the highest rate in 13 years — it is little wonder why so many have looked at the People’s Republic of China (PRC) as an investor’s paradise.

China Agritech Inc. (OTCBB: CAGC), a Chinese company that began trading in the United States as the result of a reverse merger with China Tailong Holdings in February of 2005, only bolsters the argument it would seem.

According to the Company’s web site, CAGC is “one of the leading developers, manufacturers, and distributors of liquid organic compound fertilizer” in the PRC. And, given that China is the biggest consumer of fertilizer in the world (based on statistics compiled by the International Fertilizer Industry Association), that makes China Agritech a fertilizing force to be reckoned with.

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About CAGC

China Agritech is engaged in the development, manufacture and distribution of organic liquid compound fertilizers and related products in the People’s Republic of China. The company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The company sells it products to farmers located in twenty provinces of China including: Hainan, Anhui, Hubei, Jiangsu, Jiangxi, Guangxi, Liaoning, Shanxi Heilongjiang, Hebei, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan, Chongqing and Guizhou. Volume Leaders are Cisco Systems (Nasdaq: CSCO), Juniper Networks (Nasdaq: JNPR), MGI Pharma (Nasdaq: MOGN), Genesis Microchip (Nasdaq: GNSS), Celgene (Nasdaq: CELG), Nvidia Corp (Nasdaq: NVDA), Intel Corp (Nasdaq: INTC), Microsoft (Nasdaq: MSFT), Comcast (Nasdaq: CMCSA), Apple (Nasdaq: AAPL), Yahoo Inc. (Nasdaq: YHOO), Applied Materials (Nasdaq: AMAT) and Level Three Communications (Nasdaq: LVLT).


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