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China New Borun Corporation (BORN) Skyrockets, Alerting NYSE

  +Follow October 15, 2013 10:31AM
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The Chinese distiller China New Borun Corporation (BORN) saw its shares spike On Oct 14 as US corn exports to China continue to increase substantially. The rise was so precipitous, however, that it caused the New York Stock Exchange to contact the company over the "unsual activity."

Some rise in share price was expected. A few days prior, a private Chinese trading firm bought 420,000 tons of corn for delivery next year to take advantage of cheap prices, leading to speculation the corn processing industry in China will ramp up considerably as the country eases restrictions on corn importation.

The increased corn supply is great news for China New Borun. The company produces lower grade edible corn alcohol that is used to make cleaning solvents, crude corn oil, and the popular alcoholic drink baijiu. China New Borun currently has two manufacturing facilities, one in Shangdong province and another in Heilongjiang province that are jointly capable of producing 160,000 tons of corn-based edible alcohol per annum.

China has been loosening its restrictions on corn importation all year to cover supply shortages, as the country has already used up their domestic supply. The Financial Times reported in September that corn imports into the country were expected to increase from 3 million tons in the 2012-13 crop year to 7 million tons in 2013-14. The price drop in corn was fortuitous for the country, and they are currently taking advantage by amping up importation even more.

China New Borun had been down this year on less than stellar earnings. However, the increased importation of corn into China will almost certainly lower the company’s bottom line. The price of corn in China has been dropping steadily, from 2,346 yuan in July, to 2,272 yuan on Oct. 16, or $363.50 US a ton (around $9.10 a bushel.) Corn is currently $4.40 a bushel in the US.

While the Chinese government strives to maintain “self-sufficiency” with their crops and avoid excessive importation it has become clear the private traders have other ideas, and companies like China New Borun reap the benefits of the sudden influx of cheap US crops that will substantially lower costs going forward.

However, the sudden jump may have more to go on than just favorable crop conditions. Following the spike in price the NYSE contacted China New Borun, as is standard when a company’s shares elevate so suddenly. China New Borun, citing company practices, declined to comment on the unusual activity.

China New Borun is up 46.72 percent to hit $2.01 a share.   

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for BORN
4-traders.com
23 Jan 15 22:24:11
#China New Borun : Highlights Annual General Meeting http://t.co/poWEOgsYwt $BORN
Stocks News&Markets
23 Jan 15 15:46:41
Tim made $10,102 on $BORN -Check it out! http://t.co/xgUKTjSTx0 Learn #howtotrade http://t.co/axK8SMSgo9 $ANFI $WATT $ZAZA $CACH $VII
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23 Jan 15 15:19:15
$GOOG Stock Forum Updated Friday, January 23, 2015 5:59:24 PM $AAPL $BORN $UNG $TNA http://t.co/YY3U2HDwKm
IH News Desk
23 Jan 15 15:19:13
$BORN Filings Updated Friday, January 23, 2015 6:09:54 PM $SSO $XIV $UVXY $ARWR http://t.co/887RRHvtBd
IH News Desk
23 Jan 15 14:17:48
$BORN News Updated Friday, January 23, 2015 5:09:55 PM $GE $CNET $AG $CMG http://t.co/EG0JsH4Aqe
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23 Jan 15 14:17:41
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23 Jan 15 12:37:39
$TWTR News Updated Friday, January 23, 2015 3:06:25 PM $UWM $RAD $BORN $ERF http://t.co/3Bvr2D7BFQ
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$FNMA Stock Forum Updated Friday, January 23, 2015 3:09:55 PM $AG $BORN $EBAY $QCOM http://t.co/g8ASQt1Hf6
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23 Jan 15 10:13:47
$IWM Reviews Updated Friday, January 23, 2015 1:02:55 PM $BORN $IEF $T $UNG http://t.co/SAsgtjyhv5
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$BORN Stock Price Updated Friday, January 23, 2015 1:02:55 PM $DUST $VXX $VTI $EGO http://t.co/QgLIchsoiS
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23 Jan 15 10:13:39
$PBR Filings Updated Friday, January 23, 2015 1:02:55 PM $UGAZ $VXX $CY $BORN http://t.co/wrcEjMLpgJ
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23 Jan 15 10:05:48
$C Percent Change Updated Friday, January 23, 2015 12:59:24 PM $VTI $GE $BORN $DDD http://t.co/U2svQnNody
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23 Jan 15 06:01:10
$ARWR Recent News Updated Friday, January 23, 2015 07:59:26 AM $BORN $PBR $UNH $UVXY http://t.co/fUSCc19fwA
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23 Jan 15 04:59:04
RT @PolgarStocks: $UCO Last Price Updated Friday, January 23, 2015 06:06:27 AM $XHB $BORN $FXI $TSLA http://t.co/JKMnx6XK00
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23 Jan 15 04:08:10
$BORN Reviews Updated Friday, January 23, 2015 07:02:57 AM $BORN $GILD $YIPI $XLB http://t.co/3ZvRROYWm4
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23 Jan 15 03:25:42
$UCO Last Price Updated Friday, January 23, 2015 06:06:27 AM $XHB $BORN $FXI $TSLA http://t.co/JKMnx6XK00
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23 Jan 15 02:58:36
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23 Jan 15 02:25:06
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22 Jan 15 22:53:10
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22 Jan 15 22:52:35
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22 Jan 15 17:56:15
$EBAY Investor Opinions Updated Thursday, January 22, 2015 8:02:55 PM $INTC $SUNE $EWG $BORN http://t.co/83yReJPOll
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22 Jan 15 17:37:47
$BRIZF Current Price Click Here: http://t.co/qEgr1LX0ME Also See: $DSTR $ANSU $BORN $EEKAF ~
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22 Jan 15 08:48:33
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22 Jan 15 07:47:16
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22 Jan 15 07:39:29
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22 Jan 15 07:39:28
$AGG News Updated Thursday, January 22, 2015 10:11:26 AM $BORN $FXC $SVXY $TLT http://t.co/jO8q6GnXw6
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22 Jan 15 05:37:39
$KMB Financials Updated Thursday, January 22, 2015 07:59:27 AM $XLU $F $HAL $BORN http://t.co/HBWMTL53Ah
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22 Jan 15 01:57:46
$BORN Stock Forum Updated Thursday, January 22, 2015 04:07:26 AM $VXX $ECIG $XLF $IYT http://t.co/PDbMknpn50
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21 Jan 15 23:27:37
$TLT Short Sales Updated Thursday, January 22, 2015 02:11:30 AM $IEI $LUV $BORN $V http://t.co/uHMiDdwgzA
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21 Jan 15 23:27:33
$BORN Company Info Updated Thursday, January 22, 2015 01:59:21 AM $CAT $SVXY $F $HL http://t.co/fNpWYVB42r
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21 Jan 15 20:25:42
$BIDU News Updated Wednesday, January 21, 2015 11:11:19 PM $SMN $BORN $UNH $CLF http://t.co/THaZ4ob7G9
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21 Jan 15 18:49:46
$QLTS Investor Opinions Updated Wednesday, January 21, 2015 9:07:22 PM $IBB $SWKS $BORN $WLT http://t.co/WRe9b7I2Uk
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21 Jan 15 18:24:11
$KMB Percent Change Updated Wednesday, January 21, 2015 8:59:22 PM $BORN $GILD $VWO $KMI http://t.co/ytwv3ct1K7
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21 Jan 15 17:33:41
$UVXY Reviews Updated Wednesday, January 21, 2015 8:03:20 PM $AA $BORN $MCD $CSX http://t.co/0lqGsFZ22f
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21 Jan 15 17:21:43
$IWC Last Price Updated Wednesday, January 21, 2015 7:59:22 PM $BORN $NFLX $KMB $NEM http://t.co/EmFUL5L5BR
PolgarStocks
21 Jan 15 16:48:17
$DIA News Updated Wednesday, January 21, 2015 7:07:26 PM $XLU $KMB $FFR $BORN http://t.co/i6luGMdRYB
Stocks News&Markets
21 Jan 15 06:46:01
Tim made $10,102 on $BORN -Check it out! http://t.co/xgUKTjSTx0 Learn #howtotrade http://t.co/axK8SMSgo9 $ANFI $WATT $ZAZA $CACH $VII
4-traders.com
20 Jan 15 23:23:25
#China New Borun : Updates on Annual General Meeting http://t.co/XAgAtFY01l $BORN
Small Cap Strategist
20 Jan 15 15:48:17
Most searched small-cap stocks, Tues Jan 20th - $OAS $OIBR $CXDC $VA $TTWO $NWBO $SMCI $BORN - More: http://t.co/1znvSP0l3X - #smallcap
Analyze
20 Jan 15 09:01:51
I like $ABIO $BIOC $BORN $BPZ $DRYS $EROC $EYES $HSOL $ISR $MEET $NQ $RSH $VJET $WAVX $XGTI $XXII for the bottom spot reversal points, LONG
umbi1111
20 Jan 15 07:55:59
@MONEYEMPIRE i wait $born and love $redf
ProVesting
20 Jan 15 06:16:04
$BORN $STNR: Underperforming Companies for the Week: China New Borun Corp ...: http://t.co/9ZP3o1csUL
				
				
  +Follow October 15, 2013 10:31AM
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