China Growth Stocks

[southacresdave]

CNAM...VIKING86...$40M in revenue is approx 90-100K metric tons of scrap processed so it definitely is more than 1 month of operation (even if they were running 100%, which there is no way they are). I'm thinking that management is being smart (hopefully) and seriously "under promising" so they can "over deliver".

The big thing is we don't want it to carry into December (for then it will effect 1rst Q numbers--as that is when delivery would take place). 1rst Q numbers need to be as solid as possible so people can get a strong look at what all of 2011 will bring.

Pluses about 1rst Q 2011---iron ore demand should be decent as many of the mills that have been shut down now (and into 4th Q) should be buying. The recycling should be running at 85%+ per month. Also in early March is the Rodman & Rothman conference in Shanghai. It was the day before they presented there in March 2010 that CNAM released the info on the steel contract they had signed (obviously the timing was planned). The combo of the two is what shot the stock over $10. Anyone attending the conference can easily drive 50 miles to CNAM's plant afterward.