SDTH nice report
27,170,790 gross revs and $8,893,278 comprehensive net income and .14eps
This compares to Q2
22,680,529 gross revs and $7,048,245 comprehensive net income and .11eps
They report good increases in the nano particulated calcium carbonate. They have ramped up capacity from 30metric tonnes per year in 2005 to 90tonnes in 2006 and 130metric tonnes in 2007. They plan to increase another 60 metric tonnes by 12/31/07. This is very positive because this is their proprietary product line where gross margins are much better than their commodity chemical businesses. They also noted that their costs per pound go down as they increase capacity. This has allowed them to take market share by lowering the sales price while maintaining their gross margins.
.14X 4= .56 vs $7.50 forward p/e of 13 vs 18 previously.
They did remind us that the next qtr and 1/2 are weak for chemicals(read fertilizer) so I would guess that next qtr sales increases over Q3 would be modest or nonexistent. They still should have YOY increases. The profits might hold up because of the increased capacity for their Nano Particulated Calcium Carbonate. This is their highest margin product and should have increased sales in Q4.
Bobwins
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