Q1 2009 results for AgFEED ($FEED)

• Earnings per share of $0.08 compared to $0.03 for the first quarter of 2008.
• Net Income of $3.02 million compared to $0.91 million for the comparable 2008 period.
• Revenue of $33.43 million, up from $12.15 million in the first quarter of 2008.
• Gross Profit of $5.80 million.

We are pleased with the results of operations for the first quarter of 2009 in spite of tough market conditions. Our year to year margins suffered due to external inventory hangover, a mild macro decline in the economy and the higher cost of corn and soy which forced our production costs to rise. The recent H1N1 flu had some effect on our businesses but the Chinese government has taken aggressive measures to curtail this problem in China. Hog prices will continue at low levels until late summer and I believe prices will begin to climb by September as the Chinese economy accelerates.” – Dr. Songyan Li (AgFeed Chairman)

• The Chinese $586 billion stimulus plan will have positive effects on the economy and the consumer as urbanization and the swift growth of the Chinese middle class, strongly position AgFeed for the expanding Chinese consumer pork market.

Technicals

So far charts look great, upside breakthrough above $3.21 has been confirmed through high volume on April 13, 2009.  Up trend line is still affirmed and trending nicely above it.  150 moving average is flattening out and is aiming upwards followed by an intersection by a 10, 20 and 50 day moving average.

Source: PR Newswire