This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chinese Firm Fishes for Higher Valuation

Stocks in this article: HQS CMFO BX

NEW YORK ( TheStreet) -- The only thing fishy about HQ Sustainable Maritime (HQS) is the high-quality tilapia and marine bio products that the company produces from its low-cost, vertically integrated operations in China.

Established in 1999, HQS' aquatic farming and processing operations in Hainan Province are in southern China's designated green province, where only environmentally friendly, agri-food related industry and tourism are permitted.

In August 2004, the company acquired Jiahua Marine, which develops, produces and sells marine bio and health care products such as shark cartilage capsules and liver oil products.

Packaged tilapia products are marketed at the retail and wholesale level in the U.S. and Europe under the name Tiloveya and "Lillian's Healthy Gourmet" from the company's headquarters in Seattle.

With world ocean catch of fresh fish on the decline, aquaculture (farm-raised fish) is set to take an increasing share of world fish production. According to the USDA, by 2020, 50% of the U.S. seafood supply will come from aquaculture. In addition to being a healthy and flavorful white fish, tilapia has many favorable characteristics that will insure its continued aquaculture production growth.

Tilapia is disease-resistant, reproduces easily, eats a wide variety of feeds and tolerates a variety of water quality conditions. To illustrate tilapia's growing consumption, from 2000 to 2007, per-capita consumption in the U.S. grew from 0.4 pounds to 1.2 pounds, according to the American Tilapia Association. This places the fish fifth in per capita consumption behind only shrimp, tuna, salmon and pollock.

HQS' financial performance reflects both the growing demand for its products and successful implementation of the company's growth strategy by the management team. From 2005 through the last 12 months ended Sept. 30, 2009, sales grew from $27.6 million to $70.5 million and are expected to grow to approximately $100 million by 2010.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs