Naz News, Gappers and FLE's

[mcmike]

SDTH double?

"One more Chinese name that could jump 100% or even more is Shengdatech (SDTH). Shengdatech makes nano-precipitated calcium carbonate, or NPCC, which has special physical and chemical properties that helps to increase strength in products such as tires, polyvinyl chloride, paints, paper, rubber, latex, plastics polyethylene and polypropylene products. The company also sells coal-based chemical products such as fertilizers and pesticides to plants and farmers.

Demand for NPCC is growing at double-digit rates, and the company controls 10% of the market share. In June, the company invested $56 million to build a new NPCC production facility that will have a capacity of 120,000 metric tons. Shengdatech plans to expand its total annual production of NPCC to 310,000 metric tons by the end of 2009. This is sharply up from April's capacity of 190,000 metric ton.

Recently, the company acquired a Chinese nitrogenous fertilizer company. Management said that if current market demand doesn't change, it sees the new company going fully operational by next year and yielding annual sales of around three times of the company's current chemical business. These are the type of acquisitions shareholders should get excited about.

The company has $18 million in cash on the books and zero debt. The stock trades at a forward P/E ratio of 11 and generates an EBITDA of $34.87 million. Around 14% of the 33-million-share float is sold short. I believe the bears are again leaning on the wrong Chinese stock at the wrong time. Look to buy this stock on any dip. "

http://www.stockpickr.com/problog/856/