Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


China New Borun Corporation (BORN) Skyrockets, Alerting NYSE

  +Follow October 15, 2013 10:31AM
Tickers Mentioned:

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.

Signup for our daily newsletter and get our best articles emailed right to you!

Results for BORN
Vizimi Stocks
24 Oct 14 20:09:48
Friday 10/24 #NYSE News: $BORN volume down 90+% for the first time since July 2013 #stocks
24 Oct 14 09:53:07
BORN 1.7411 Stock Charts $BORN China New Borun Corp. ADS (NYSE) Last Updated: 10/24/2014 11:53:08 BORN Stock C http://t.co/ORhdQE90aA
Stock Relay
23 Oct 14 07:38:15
wininstocks2014: Stock Charts: BORN 1.73 Stock Charts $BORN China New Borun http://t.co/d8d4RpkYeN
Stock Moo
23 Oct 14 06:55:11
$born: China New Borun to Report Third Quarter 2014 Financial Results http://t.co/sLmgaeRyuW
Stock Moo
23 Oct 14 05:55:18
$born: China New Borun to Report Third Quarter 2014 Financial Results http://t.co/eCu8jbgHr7
BV Consumer Goods
23 Oct 14 05:08:52
$BORN China New Borun to Report Third Quarter 2014 Financial Results.. http://t.co/3EUsslt3ph
23 Oct 14 05:05:18
China New Borun : to Report Third Quarter 2014 Financial Results http://t.co/M0xR7zQkjk $BORN
23 Oct 14 05:04:27
$BORN - China New Borun to Report Third Quarter 2014 Financial Results http://t.co/GeZivo50TR
Stocks News&Markets
23 Oct 14 05:04:10
$BORN - China New Borun to Report Third Quarter 2014 Financial Results http://t.co/qAF8oe4JEg
23 Oct 14 05:03:28
$BORN - China New Borun to Report Third Quarter 2014 Financial Results http://t.co/GLdHcy3SCO
Franky Riyandi Rivan
16 Oct 14 19:26:37
Berita Korporasi 17 Oktober 2014: $BORN $TINS $KAEF $SSIA $NRCA $KAEF $ACES $WSKT $BDMN $BJTM http://t.co/zj1W32NhdA
  +Follow October 15, 2013 10:31AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.