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AMERICAN DAIRY, Inc. (NY:ADY)

24.34 +0.05 (0.21%)
AMERICAN DAIRY, Inc. (NY:ADY) Delayed :
Previous Close $24.29    52 Week High $44.00 
Open $24.20    52 Week Low $9.13 
Day High $24.91    P/E 8.48 
Day Low $24.15    EPS $2.87 
Volume 284,405       
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Comments on recent ADY articles

albert
on Jul 14, 2009
at 08:10 AM
ADY ADY comes up short on estimates because when the PRC government placed new labeling requirements in place during the Q2 the distributors cancelled their orders until they were sure the product they were getting was in compliance with the new regulations. ADY lost about $50M in orders. The distributors elected to supply product to its retailers with its inventory rather then continue to accept product from ADY. My guess this was something that effected all dairy companies. This problem I have been told has been correc6ed by ADY since it was a labeling requirement. The distributors of ADY will have to replenish trheir stock during Q3 and that is why the guidance continues to reflect about $200M for the seconf half of the year which is in line with projected estimates. Although they will be short for the year by the $50M it is not because of a loss of share in the market or that there is less demand for the product. The new requirement of PRC has been addressed and IMO the market over reacted to the news rather than look at the reason for the shortfall.
Article: American Dairy (ADY) Guides Q2, FY09 Sales Well Below the Street

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