Message #2 From:
QualityStocks Date: February 27, 2008 12:56:49 PM
China Health Resource Inc. (CHRI.OB) Weekly Recap 2/22/2008
China Health Resource Inc. (CHRI.OB) Weekly Recap 2/22/2008
China Health Resources Inc. (CHRI.OB) Sees Single Herb Focus as a Sure Way to Success Wednesday, February 20th, 2008
When one goes to Vitamin Stores these days, they see literally hundreds of different Herbal Medicines with 100s of different ingredients. This is all very confusing for the customer as they try to understand each ingredient. Successful herbal supplements marketed around a single Herb include Aspirin, Digitalis, Quinine and Ayurvedic. This Branding helps the customer recognize the drug under its Branded name, eliminating the difficulties of promoting traditional medicine as many are quite complex. It also makes the promotion much easier as the company focuses on only one Herb.
Ayurvedic is an example of Single Herb Branding. It is so successful that it now represents a $1 billion dollar market in India alone. One company that produces Ayurvedic in India generates $45 million in yearly revenue. DAR, a traditional Chinese medicine that China Health Resources Inc. focuses on, is growing in popularity exponentially. Consumer awareness of the dug and its abilities also continues to grow. They have decided to focus solely on DAR, as part of a focused marketing campaign much like the one used by Indian companies for Ayurvedic.
It is easy to see the benefits of single herb focus in complex traditional medicine. Not only is the company able to target scarce marketing dollars in one direction, it can also strive to integrate at every level of the Drugs creation from the fields to the research facilities. They have done this and stand as a prime example of a Single Herb company. Marketing Herbs around a single product has many successful examples and they intend to make DAR the next successful one.
Why China Health Resources Inc. (CHRI.OB) is Currently Undervalued Wednesday, February 20th, 2008
Last year was a rough year for this Herbal Medicine Company focused on DAR, a traditional Chinese medicine known to cure many ailments, as they reported a loss of .01 cents per share. This however was a rough year for most agricultural firms within China as the year saw tremendous flooding that destroyed many crops. The market is still pricing this past information into this stock when this year has been quite good for the company.
They recently received the coveted Chinese equivalent to FDA approval, “GAP”. This is huge for the company and almost instantaneously adds franchise value to the firm as they can now export the product almost anywhere in the world. GAP is the same agriculture standard used by the EU. They also added a Research Scientist with over 40 years of experience giving them a tremendous competitive advantage over other firms in the DAR industry. This year the company has also grown operations with acquisitions and strategic partnerships, all of which one would think increases the shareholder value. However, the market seems to be failing at pricing this into the value of the company as it trades close to its 52 weeks lows.
A wise investor would see this as a tremendous value play as its Market Cap today is about $8 million. DAR is in its very early stages of growth, it has tremendous upside potential; in fact, one company alone competing in the Ayurvedic industry, an Herbal Medicine grown in India, generates sales of $45 million yearly. It is quite possible that DAR will become the next Ayurvedic. Because of the GAP approval, investors can be assured that they are not in the business of smoke and mirrors and that DAR from this company is the real deal produced at the highest standards. The market is not seeing this gem, making it a diamond in the rough for Investors looking for a value with huge upside potential.
China Health Resources Inc. and its subsidiaries focus on developing and commercializing Dahurian Angelica Root. They are located in the Suining, Sichuan province of China where 70% of China’s DAR output comes from. The company intends to build a total value chain at every step of the DAR Industry, from production to research. The company currently has 11,000-mu DAR field and has built a GAP research basement of 2,000 mu. They also have a number of research agreements with Chinese universities and professors providing a strong platform for R&D.
China Health Resource Inc. (CHRI.OB) Sees Surge in Trading Activity in Light of Recent Business Activity Tuesday, February 19th, 2008
This China based Agriculture Company recently announced the addition of a Chinese Herbal Medicine expert. Jia Minru a Medicinal expert joined the company’s team and brings over 40 years of experience to the company. He is a professor at the Chinese Medicine University. Mr. Minru is responsible for a number of advanced studies Chuan DARGAP. His addition will almost certainly give Suining Chuan a competitive advantage in the commercialization and scientific advancement of Dahurian Angelica Root and other medicinal herbs.
Shortly after the announcement, the trading volume surged above 1 million. The Volume average is around 300K, so this is a significant increase in trading activity. The 50-day moving average also began trending upwards toward the 100-day moving average indicating a possible trend reversal for the stock. When looked at in a Point and Figure Chart, a Three-box reversal pattern is showing. On a Candle chart volume is far stronger on upwards movement and weak on downward movements. All of these are excellent technical indications of a price reversal for China Health Resources.
China Health Resources Inc. and its subsidiaries are focused on developing and commercializing Dahurian Angelica Root. They are located in the Suining, Sichuan province of China where 70% of China’s DAR output comes from. The company intends to build a total value chain at every step of the DAR Industry, from production to research. The company currently has 11,000-mu DAR field and has built a GAP research basement of 2,000 mu, planting field of 11,000 mu. They also have a number of research agreements with Chinese universities and professors providing a strong platform for R&D.
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