U.S. China Mining Group Inc fka SGZH

[son_of_Mr_Greengenes]

i agree, this will go down for sure, but it looks like normalized earnings are around 1.80 -2.00 a share. thats about 5x earnings at $10.. with some growth, we should be OK, but not this week

[beenhadmoney]

Is this one worth holding on to or is this the start of a downward spiral?? I dont want to sell and dont need the money right now, but i dont want to lose all of my money! My guess is to just maybe wait this one out.patience might pay off!

[son_of_Mr_Greengenes]

Do not forget that the Xing An property is only in operation from October to May.
There is alot of seasonality to their production

[bUrRpPPP!]

I guess July is the best time to be shutting down boilers.....who needs to be boiling anything in July anyway!

[bradford86]

The decrease in sales volume was mainly due to the temporary closing of a major power plant customer for one month in July for overhauling and maintenance of its boilers.

Cost of sales as a percentage of sales decreased

looks good going forward to me.

[bUrRpPPP!]

SGZH 10-Q http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6608344

[Traderfan]

Ha, great stuff. So 3 guys from the ECSC board took out all of the CHIO's at 1.05 afterhours. You, Cliff and me.

[bUrRpPPP!]

LMAO!.....btw I took out the rest of the 1.05 on chio and i'm sitting on the bid @ 1.07 for the last 1400......what the heck!

[Traderfan]

Oh c'mon.....you know I had a heart attack just now. I was looking for 1 minute at that number and all kinds of thoughts were going through my mind. LOL

[bUrRpPPP!]

OMG Earnings $8.25 per share........
Just kidding! weeeeeee!

[bUrRpPPP!]

On fire today last $10.60!

[bUrRpPPP!]

Added today 10.15 ....eom

[atco1982]

Too bad we must wait for restatment -

At these prices they have a forward PE of 3 and are ready to uplist. After that, the PE wont be 3 any more. It will be $20 in a month.

[bUrRpPPP!]

Real strong today! 10.78 buyers!

[bUrRpPPP!]

Here's a re-post of older news in regards to them uplisting.

Songzai International Strengthens Corporate Governance With Appointments of New Independent Directors, Establishment of Board Committees and Adoption of Code of Ethics




The Board of Directors of Songzai International Holding Group, Inc. (OTC.BB: SGZH) ("Songzai International," the "Company"), a coal producer in the People's Republic of China ("PRC"), today announced a series of measures adopted to strengthen the Company's corporate governance in compliance with the listing requirements of a senior U.S. exchange.


First, the Board appointed 3 independent directors, Mr. Elan Yaish, Mr. Yanlin Qu and Mr. Shengchun Liu, effective February 27, 2009.

Mr. Yaish is the President of ERS Associates, Ltd. since January 2006, providing business and financial advisory services to publicly traded and privately held companies. From August 2002 to November 2005, Mr. Yaish was the Vice President of Finance and Assistant Secretary of Manchester Technologies, Inc. From February 2000 to July 2002, Mr. Yaish was the Assistant Vice President of Finance at Comverse Technology, Inc. From June 1996 to February 2000, Mr. Yaish was the Vice President of Finance and Controller of Trans-Resources, Inc. Mr. Yaish was a senior accountant at Deloitte & Touche LLP from September 1992 to May 1996. Mr. Yaish graduated from The Yeshiva University, Sy Syms School of Business, with a B.S. in accounting in 1992. Mr. Yaish is a licensed CPA in New York and a member of the AICPA and NYSSCPA.

Mr. Yanlin Qu is the Deputy Director General of the Coalfield Geological Bureau of Heilongjiang Province, a position that he has held since November 1999. Mr. Qu is a 1977 graduate of Heilongjiang School of Mining with a master's degree in mining sciences.

Mr. Shengchun Liu is the President of both the Heilongjiang Province Railway Association and the Harbin Railway Commission Science & Technology Association, positions he has held since December 2002. From June 1977 to December 2002, Mr. Liu was the Director of the Heilongjiang Province Economic Commission. Mr. Liu is a graduate of Jilin University with a B.S. degree in automotive sciences.

The Board also established an audit committee, a compensation committee and a nominating committee. Mr. Yaish, Mr. Qu and Mr. Liu were named to the audit committee, with Mr. Yaish as the committee chairman. Mr. Qu and Mr. Liu were also named to the compensation and nominating committees, with Mr. Qu as chairman of the nominating committee and Mr. Liu as chairman of the compensation committee.

"We are pleased to welcome Mr. Yaish, Mr. Qu and Mr. Liu to our board of directors. Their solid backgrounds and depth of knowledge and experience will help make significant contributions to our company and ensure we meet the high standard of corporate governance necessary to be listed on a senior U.S. exchange," said Mr. Hongwen Li, Chairman and Chief Executive Officer of Songzai International.

The Board also adopted a Code of Business Conduct and Ethics applicable to all employees, officers and directors of the Company, in order to promote ethical conduct and compliance with compliance with laws and regulations, to provide guidance with respect to the handling of ethical issues, to implement mechanisms to report unethical conduct, to foster a culture of honesty and accountability, to deter wrongdoing, and to ensure fair and accurate financial reporting.

About Songzai International Holding Group Inc.

Songzai is a coal producer and reseller based in China. The Company distributes coal to both industrial customers, such as power plants and cement factories, and to individual consumers for home heating.

[tothe]

SGZH chart.. natural retrace action after a stunning run-up with an average of 1.7% of the float traded daily for two weeks. With all the recent buying in the regestered sector I figure support between 9.50 & 10.00. The CMF(60) & (20) shows the inertia of the money is staying put. CMF(5) shows traders moving in & out. ChiOsc shows MM's dumping sandbagged inventory (normal for low volume) probably held over since the sell-off week of September 21. Anyone notice how low the $250K dollar volume is compaired to the P/E and EPS?
Technicals 80/100/100%
http://quotes.barchart.com/texpert.asp?sym=sgzh
Note the P/E and EPS caculated here..assume forward?.
http://www.profitspi.com/stock-quote/sgzh.aspx
FMR chart shows 1 year moneyflow of $6,000,000 and non-dilutive OBV only shows 5% holders trading the stock on certain occasions.
http://eresearch.fidelity.com/eresearch/goto/evaluate/chart/chartAdvanced.jhtml?destination=%2Feresearch%2Fgoto%2Fevaluate%2Fchart%2FchartAdvanced.jhtml&symbols=sgzh

[Traderfan]

I wonder when they will eventually bring on the restatement because the stock probably won't run a lot further without the restatement behind us. So bring it on guys together with applying to the Nasdaq. Then this one is a monster.

[bUrRpPPP!]

$10.80 close what a money maker this one has been!

[Traderfan]

Nice day again. Looking forward to the next few weeks. We really need some good news from the company so we can really fly.

[bUrRpPPP!]

$10.00 going to fall..$50,000 buys going thru....

[Drexion2004]

Agreed, this one is one of my favorites. Just so cheap right now.


-Fernando

[GorillaGorilla]

Oh sorry, short term price predictions are out of my area of competetence.

rich

[Traderfan]

Absolutely I agree. I'm in this since 7 and if there is no surprise on the negative side regarding the restatement this one is going a lot higher because one thing is for sure, they did this restatement out of one single reason and that is uplisting in my opinion.

Since the restatements are supposed to be about depreciation and amortization it has no effect on cash flow and we should be fine. If we uplist we are a 20 dollar stock at least. IMO

[beenhadmoney]

Yeah but i sold it @ $7.00...im waiting on a dip to get back in...what price should i add to SGZH. i got in @ $7.40

[GorillaGorilla]

The only risk I can see the restatement of accounts......

Either
1) Wait for restatement... see if OK and buy more with complete confidence.
2) Buy anyway... no-one can make a case for amortization being a significant change to EPS.

It's 8% of my portfolio... I'm a happy holder... and if I had some money today.. it would be one of the ones I would strongly consider adding to. It looks like from your messages you've already discovered PUDA

rich

[beenhadmoney]

wonder if i should add more????

[bUrRpPPP!]

Cheapest $30.00 stock out there if you ask me....

[GorillaGorilla]

Hmmm P/E 4.4 ...looks like it's going to be earning more this year... Uplisting possible, GS predicting significantly higher coal prices.... Assuming 22% growth... target price north of $30. A sell would be dependent on your timeline horizons and what you would want to buy instead, but it better be good I think this is has got some legs in it....

rich

[beenhadmoney]

I was thinking about selling this one today...do you think that would be a smart move? I got in @ $7.40

[bUrRpPPP!]

$$$$9.50.......weeeeee!

[Traderfan]

I have no idea and furthermore I don't know when these guys want to report the changes made in the filings. I'm filing shaky until they do with my holdings here.

[presence]

How long would it take for SGZH to redo their report/restate earnings and apply for relisting? Would they even have to re-apply? It'd suck if it took another 6 months or so. I'd appreciate anybody's input on this matter.

[BiotechValues]

Some good stats on global coal demand

Note the big ramp in demand by China from now thru 2030...and a lot of the demand will be for thermal coal, and not just metallurgical coal.

http://www.eia.doe.gov/oiaf/ieo/coal.html

[viking86]

SGZH stock price seems to be manipulated to me. Seems like somebody wants to keep a lid on it in the $7-7.5 range for months. Last Wed, the day before the news about reports to be restated, volume shot up to 200k+ from a daily average of a few thousands and price spiked to $9. Also the Fail-to-deliver # are very high for a stock with such a small float (about5m shares).

Are MM's trying to hold back and accumulate shares b/c they anticipate the price to move much higher soon? Anybody has a theory on this?

[GorillaGorilla]

Ah, didn't see that before I posted Could be even better...

rich

[GorillaGorilla]

Hi Bradford, to clarify...

I'm trying to clarify as it's like following someone good at maths when they miss out a line of working and your left scraching head

Amortization of the mining rights you are getting from the cash flow? So, it's 2009 figure in the cash flow is $818,028?

Am I right in saying that the amortization is put as an expense in the cost of goods sold? So, we don't know the exact mistake they have made but it's in the region of, worse case scenario, a multiple of 2, say, of $818,028?

The net income you have taken from the 3 months ending June 30th 2009? 12,430,720.

Assuming you got it this way the amortization, in the cash flow, $818,028, was for the *six* months ending 2009, yep? Does that change anything?

So, assuming I'm right, using your method and my pessimism, you'd probably want to be talking about $400,000 expense and taking a pessimistic, bad case scenario, with a multiple of 2 of this. So $800,000 or around 6% (800,000 / 12,430,720) of net margins in play with a reasonable chance it could be better 3%?

Question... If I'm right about it affecting cost of goods sold why don't we use the revenues? Or is the net income a short cut way of working out it's not significant?

muchos cheers...

rich

[bradford86]

SGZH - TF

I'm saying that based on my limited understanding of what appears to be going on by reading as much as i can in little time and then extrapolating to make educated guesses...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=41858033

i can say that at this point in time, it doesn't make me re-evaluate my earnings forecasts going forward.

i'm glad they are playing by the rules.

i think this is just real nit-picky stuff.. nothing major..

but i reserve the right to be wrong. only time will tell.

[Traderfan]

So Glen what you are saying is that we are talking about a 10% difference in earnings only? Unfortunately I don't have enough background in accounting to really get a grasp on it.

I do however think that you have some guys handy who do know how to evaluate this so this is good news apparently.

[bUrRpPPP!]

Looks like a triple hit tomorrow......over sea's markets are all already red....fridays are known for profit taking....and we got hit with an ugly 8k filled with uncertainty...a stocks biggest enemy. Looks like we have a buying op coming.....

[viking86]

anybody thinks yesterday's spike in volume and today's bad news is just coincidence ? not me.

[TrekRider]

If I wasn't already knee deep in this stock I suppose I'd call tomorrow a buying opportunity. All I can say now is "Bring It On."

[pnnymn]

usually accounting issues = major dump. Doesnt matter how much it is downplayed. Friday will be a red day.

[beenhadmoney]

Nice work! I got in @ $7.40 on monday and am wondering if i should just wait this one out...I feel like this could at least double.

[pnnymn]

never mind

[bradford86]

SGZH - Global Speculation - It's Homework Time

The accounting issues relate to (i) the amortization of mining rights based on salable reserves determined under Industry Guide 7, (ii) the amortization of asset retirement obligation based on salable reserves determined under Industry Guide 7 and (iii) the accounting for the reverse acquisition in April 2008 of Heilongjiang Xing An Group Hong Yuan Coal Mining Co., Ltd. and Heilongjiang Xing An Group Sheng Yu Ming Co., Ltd.

Amortization of the related asset is recorded on a straight line basis over the estimated useful lives of the fixed amount of coal we are entitled to extract.

Depreciation and amortization
818,028 804,783

NET INCOME
12,430,720 $ 6,041,801

wow. we are talking 10% of net income here. who cares.

http://sec.gov/divisions/corpfin/guidance/coalmineletter.htm

http://sec.gov/about/forms/industryguides.pdf

Description of Property by Issuers Engaged or to Be Engaged in Significant Mining Operations
Guide 7.
(a) Definitions. The following definitions apply to registrants engaged or to be engaged in significant mining operations:
(1) Reserve. That part of a mineral deposit which could be economically and legally extracted or produced at the time of the
reserve determination.
Note: Reserves are customarily stated in terms of “ore” when dealing with metalliferous minerals; when other materials such
as coal, oil, shale, tar, sands, limestone, etc. are involved, an appropriate term such as “recoverable coal” may be substituted.
(2) Proven (Measured) Reserves. Reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches,
workings or drill holes; grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection,
sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and
mineral content of reserves are well-established.
(3) Probable (Indicated) Reserves. Reserves for which quantity and grade and/or quality are computed form information similar to
that used for proven (measure) reserves, but the sites for inspection, sampling, and measurement are farther apart or are
otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high
enough to assume continuity between points of observation.
(4) (i) Exploration State — includes all issuers engaged in the search for mineral deposits (reserves) which are not in either the
development or production stage.
(ii) Development Stage — includes all issuers engaged in the preparation of an established commercially minable deposit
(reserves) for its extraction which are not in the production stage.
(iii) Production Stage — includes all issuers engaged in the exploitation of a mineral deposit (reserve).
Instruction to paragraph (a)
Mining companies in the exploration stage should not refer to themselves as development stage companies in the financial
statements, even though such companies should comply with FASB Statement No. 7, if applicable.
(b) Mining Operation Disclosure. Furnish the following information as to each of the mines, plants and other significant properties
owned or operated, or presently intended to be owned or operated, by the registrant:
(1) The location and means of access to the property.
(2) A brief description of the tile, claim, lease or option under which the registrant and its subsidiaries have or will have the right
to hold or operate the property, indicating any conditions which the registrant must meet in order to obtain or retain the
property. If held by leases or options, the expiration dates of such leases or options should be stated. Appropriate maps may be
used to portray the locations of significant properties;
(3) A brief history of previous operations, including the names of previous operators, insofar as known;
(4) (i) A brief description of the present condition of the property, the work completed by the registrant on the property, the
registrant’s proposed program of exploration and development, and the current state of exploration and/or development
of the property. Mines should be identified as either open-pit or underground. If the property is without known reserves
and the proposed program is exploratory in nature, a statement to that effect shall be made;
(ii) The age, details as to modernization and physical condition of the plant and equipment, including subsurface improvements
and equipment. Further, the total cost for each property and its associated plant and equipment should be stated.
The source of power utilized with respect to each property should also be disclosed.
(5) A brief description of the rock formations and mineralization of existing or potential economic significance on the property,
including the identity of the principal metallic or other constituents insofar as known. If proven (measured) or probable
35 of 37
(indicated) reserves have been established, state (i) the estimated tonnages and grades (or quality, where appropriate) of such
classes of reserves, and (ii) the name of the person making the estimates and the nature of his relationship to the registrant.
Instructions to paragraph (b)(5):
1. It should be stated whether the reserve estimate is of in-place material or of recoverable material. Any inplace estimate
should be qualified to show the anticipated losses resulting from mining methods and beneficiation or preparation.
2. The summation of proven (measured) and probable (indicated) ore reserves is acceptable if the difference in degree of
assurance between the two classes of reserves cannot be readily defined.
3. Estimates other than proved (measured) or probable (indicated) reserves, and any estimated values of such reserves shall
not be disclosed unless such information is required to be disclosed by foreign or state law; provided, however, that where
such estimates previously have been provided to a person (or any of its affiliates) that is offering to acquire, merge, or
consolidate with, the registrant or otherwise to acquire the registrant’s securities, such estimates may be included.
(6) If technical terms relating to geology, mining or related matters whose definition cannot readily be found in conventional
dictionaries (as opposed to technical dictionaries or glossaries) are used, an appropriate glossary should be included in this
report.
(7) Detailed geographic maps and reports, feasibility studies and other highly technical data should not be included in the report
but should be, to the degree appropriate and necessary for the Commission’s understanding of the registrant’s presentation of
business and property matters, furnished as supplemental information.
(c) Supplemental Information.
(1) If an estimate of proven (measured) or probable (indicated) reserves is set forth in the report, furnish:
(i) maps drawn to scale showing any mine workings and the outlines of the reserve blocks involved together with the
pertinent sample-assay thereon.
(ii) all pertinent drill data and related maps.
(iii) the calculations whereby the basic sample-assay or drill data were translated into the estimates made the grade and
tonnage of reserves in each block and in the complete reserve estimate.
Instructions to paragraph (c)(1):
Maps and drawings submitted to the staff should include:
(a) A legend or explanation showing, by means of pattern or symbol, every pattern or symbol used on the map or
drawing; the use of the symbols used by the U.S. Geological Survey is encouraged;
(b) A graphical bar scale should be included; additional representations of scale such as “one inch equals one mile” may
be utilized provided the original scale of the map has not been altered;
(c) A north arrow on the maps;
(d) An index map showing where the property is situated in relationship to the state or province, etc., in which it was
located;
(e) A title of the map or drawing and the date on which it was drawn;
(f) In the even interpretive data is submitted in conjunction with any map, the identity of the geologist or engineer that
prepared such data; and
(g) Any drawing should be simple enough or of sufficiently large scale to clearly show all features on the drawing.
(2) Furnish a complete copy of every material engineering, geological or metallurgical report concerning the registrant’s property,
including governmental reports, which are known and available to the registrant. Every such report should include the name of
its author and the date of its preparation, if known to the registrant.
36 of 37
Instruction to paragraph (c)(2)
Any of the above-required reports as to which the staff has access need not be submitted. In this regard, issuers should consult
with the staff prior to filing the report. Any reports not submitted should be identified in a list furnished to the staff. This list
should also identify any known governmental reports concerning the registrant’s property.
(3) Furnish copies of all documents such as title documents, operating permits and easements needed to support representations
made in the report.

VERDICT: Not Sure. I'm satisficing here... and going to say that the additional research time it would take to figure out the new amortization schedule would be wasted. odds are they are going to use some accelerated amortization or not let them amortize it. Either way, I think it won't make much of a difference.

[bUrRpPPP!]

Rumour has it Warren Buffet wants in China coal and is buying up the float...hostile takeover......

just kidding! WEEEEEE!

[GorillaGorilla]

Well, people make trading decisions and valuations decisions. I don't have any trading instincts - I will bow to better experience than me.

From a valuation perspective it did $1.73 in earnings in 2008. Ignore the coal price increases ( which are significant ), ignore any potential for increased volumes, 2009 earnings, or usage of cash, and based on 2008 estimates at P/E of 10 is $17.

I don't see why anyone would want to sell until the double digits of their choice.

You can easily make the case for $30. Does anyone know why 2008 Q1 was 85 cents and the rest of the year was 30 to 40 cents?

rich

[beenhadmoney]

haha of course not before uplisting,but why such a big spike today? Im also in puda and llfh...

[bUrRpPPP!]

LMAO!

[beenhadmoney]

When would be a good time to sell?? now??