China Growth Stocks

[chrich12]

CELM: Derek

With respect to question (1), Dexter called that the reference capacity for 2011. They've been adding since mid-year, so my assumption is that it is all available for 2011. Dexter did note though, that it's only a reference number. Actual capacity is also a function of the size and mixture of motors they produce. He said they focus more on revenues than capacity. He wasn't forthcoming with a revenue target.

I don't have an answer for question 2. It's just an assumption on my part at this point.

In re-reading my email exchanges with Dexter, he also mentions that they have some acquisition targets. That was basically his response when I asked about the most recent S-3 given that they seemed to have adequate cash flow from operations.

Happy New Year