U.S. China Mining Group Inc fka SGZH

[v80alue]

SGZH - DD

As shown in 10k. Production and brokerage volumes are VERY seasonal.

TonGong has NO production in both 2007 and 2008. Sales volumes are from brokerage.

Xing An were under maitenance to broaden passage so NO production in Q2 and Q3 of 2009. Not sure Q4's production will be significant. Judging from significant lower number from 2008 vs 2007, I am not sure. Brokeraged volumes are also lower from 2007 to 2008 to 2009.

Not saying they are not going to show any sale volumes.
brokeraged volume normally lower the profit margin, hence net income, eps etc.

Their year over year growth are still respectable. However the prospect of a blowout Q4 like CHGY did is not very high. Q4 result may even disappoint some.

Sentiment: Don't buy. Wait for dip after 10k release, however late.