China Sun Group Hi-Tech Co. (CSGH)

[IPO$]

Here is the company's response to my questions:

Coz the raw material cost is lower, so the margin for the new product is high. Best,

>???: <[e-mail]>
>??: question
>??:Mon, 21 Dec 2009 11:17:09 -0500
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Can someone help me understand the near term upside to this stock? I own a small position and have been trying to justify my purchase. I’m a fan of the lithium plays, especially on the raw material side, so I like their core business. However, I’m not seeing the growth potential.

In looking at the latest 10Q, they had a falloff in revenues and income that appears to have been due to a reconfiguration of their production lines - the addition of lithium iron phosphate capability. Does anyone know if the margins/demand on lithium iron phosphate are greater than cobaltosic oxide?

Given that they haven’t increased capacity, but rather have re-allocated it, where is the near term growth? I’m also assuming that their prior operations were at capacity, but have no real knowledge on the subject.

Also, does anyone have any info regarding the status of their mine in the Congo? Obviously, if they reduce their raw material costs, their margins will improve. All the info I’ve found talks about their efforts, but I haven’t found anything that really talks about the present status.