Good 2008 article RE" CPSL advances & growth projections then.... Stock was at exact same level then as it is today and as I have believed, is extremely undervalued and oversold and even overlooked from the frenzy of 2009 markets as a whole in the last 1-2 years.... It's time is overdue for greater growth and as the Deutsche Bank upgrade now to 10.00 near term indicates, this is destined for much higher share price.
CPSL:
China Precision Steel Inc. (NASDAQ:CPSL) makes specialty steel products for use in other industries. CPSL essentially takes pre-made blocks of steel and turns this "raw" steel into precisely measured steel pieces that serve as components in automobiles, microelectronics, and other manufactured goods. CPSL's products are also used in plane friction discs, appliances, food packaging materials, saw blades, and textile needles.
Though it has no direct domestic competitors as of mid-2008, CPSL does compete with larger foreign exporters to China, which account for 85-90% of the premium steel industry in China. However, due to technological and geographical advantages, CPSL offers its products at a 10% discount to international prices, and with shorter delivery times. CPSL is also actively searching for new business in foreign countries. Although most of CPSL’s sales are made in China, it began exporting its cold-rolled steel products to Nigeria, Thailand, Indonesia and the Philippines in fiscal 2007. The company plans to continue its international expansion and establish itself in the global thin sheet metal manufacturing industry.
In response to increasing demand for its steel products, China Precision has built a second mill and plans to build a third in 2008. CPSL, with its second mill, is the only company in the world that can manufacture 1400mm wide ultra-thin high carbon steel, which was introduced in 2007 and accounted for 27% of that year's sales. The third mill will manufacture 1700mm wide cold rolled steel products, adding 150,000 tons of capacity. China Precision has used stock sales (dilutions) to fund these expansions, which has diluted existing shareholder value. China Precision has funded its acquisitions in this way for a reason, however; the cost of borrowing in China has increased as the government tightens credit by increasing interest rates, which explains CPSL's choice of stock sales to fund its expansion.
AI
