Posted by: jaybird249
In reply to: None
Date:2/27/2008 1:36:14 AM
Post #of 64
SUTR DD SUMMARY:
SUTR:NASDAQ ($5.16) is a China steel company that is the most undervalued NASDAQ stock by every measure.
SUTR HIGHLIGHTS:
7 MM float
$1 ANNUALIZED EPS AFTER FEBRUARY EXPANSION. FAIR VALUE AT 15 FORWARD PE = $15
- 37M O/S SHARES
- $48M CASH
- Significant expansion coming on-stream at the end of February will increase revenues up to $700M and net income in excess of $1/share.
- 6 MO 2008 REVENUE $215M
- 6 MO 2008 NET INCOME $13.5M or 36c/SHARE
- Still under the radar because the company just started trading in the Nasdaq exchange in February 2008
- Roth Capital has a current research note stating that they believe the company should be trading at least at a P/E of 14 or twice today's prices. Roth believes that margins, revenue, and net income will increase in upcoming quarters.
From 2/14/2008......Second Fiscal Quarter 2008 Financial Highlights:
-- Total net revenues increased 46.15 % over the second fiscal quarter 2007 to US$114.89 million
-- Net income increased 49.8% over the second fiscal quarter of 2007 to US$6.69 million
-- Fully-diluted earnings per common share for the second fiscal quarter 2008 was US$0.18, compared to US$0.14 for the second fiscal quarter 2007
THE COMPANY ALSO REPORTED THAT A SIGNIFICANT EXPANSION IS COMING ONLINE THIS MONTH.
Vertical Integration Plan Phase II
.." The Company is on track to complete its vertical integration process and expects its zinc & aluminum galvanizing steel production system, which could operate both hot-rolled and cold-rolled coils, with a designed annual manufacturing capacity of 400,000 metric tons to become operational by the end of February 2008..."
OK....so what do we have here??.....An unknown chinese steel maker trading at a PE of less than 7 about to increase revenues by about $310M/year with the new production coming on-stream. The new production will increase net income to about $1.2 - $1.4/share.
You would think that it should be trading above $20 right now right? Well, I think it will once it gets discovered.
This is an amazing ground floor opportunity. Do your DD and you will agree with me.
CPSL, for instance, is a midget compared to SUTR in terms of revenues, net income, and growth potential yet it traded above $12 recently. And even after its recent collapse, CPSL still has a larger market cap than SUTR.
SUTR will most surely become a darling of Wall Street once the word goes around. Liquidity will increase exponentially just like other profitable growing chinese stocks like BIDU, CPSL, and the dozens of solar companies. Looking at the fundamentals there are few that match SUTR's explosive potential because it is virtually unknown, and because the float is only 7M shares.
ABOUT SUTR:
Sutor Technology Group Limited (Nasdaq: SUTR), through its subsidiaries, engages in the manufacture and sale of steel finishing fabrication products in the People's Republic of China.
Its products include high-end hot-dip galvanized steel (HDG Steel) for use in electrical household appliance and construction materials; prepainted galvanized steel for use in construction materials, and parts and casings of electronic household appliances; acid pickled steel, which is used as a raw material for cold-rolled steel strip and HDG Steel, as well as components of automobile and manufacturing equipment; and hard cold-rolled steel strips used to produce HDG of cold-rolled steel.
In addition, the company provides sewage treatment services to the other manufacturing plants and households in Dong Bang. Its customers include manufacturers of electrical household appliances construction steel suppliers; and manufacturers of automobiles, ships, and other large equipments. Sutor Technology Group also exports its products to Europe, the United States, South Africa, south Asia, and southeastern Asia. The company is based in Changshu, the People's Republic of China.
