China Growth Stocks

[Brennus]

Have been out of SGTI for a while but recently dusted off my SGTI stuff for two reasons:

1.) They're dirt cheap. They could easily earn 35 cents annually in a normalized economic environment...even at very depressed operating levels.

2.) Global sugar prices have soared...meaning alternative sweetners will be major beneficiaries. You can't make corn based sweetners without starch. Starch is one of SGTI's two major product lines.

Although starch is a lower margin product, SGTI can turn their starch inventory much faster than their glucose inventory. So on a cash basis a strong starch market can really make things happen for SGTI.

So as glucose capacity utilization creeps up to the high 70% range, starch production & sales should serve as a powerful stop gap.