Sino Clean Energy Inc fka SCEIQ

[YankeMike]

SCEI.....
3 China Stocks Poised To Double In The Next 12 Months
January 2, 2012 | includes: GRO, SCEI, VALV

I believe these three China stocks, Sino Clean Energy (SCEI), Shengkai Innovations, Inc. (VALV) and Agria Corporation (GRO), could double in the next 12 months. They are all trading substantially below book value or below cash balance. Seasonality factors should favor Sino Clean Energy in the coming months. I think all these three stocks should start trading closer to their fair value at the beginning of 2012 when the tax loss selling is done.

Sino Clean Energy is the third largest producer of coal-water slurry fuel by sales in China, a cleaner alternative to burning coal aggregate in heating, industrial and power generation for residential and industrial applications. The company has seven production lines located in Shaanxi, Liaoning, and Guangdong provinces. The ongoing winter heating season in China should help revenues in the near future. Most of Sino Clean Energy's revenue has come from heating customers in the past.

Sino Clean Energy has also announced that its major customer, Shenyang Haizhong Heating, has completed pipeline modifications and is expected to resume operations in October as scheduled. This customer has accounted for 30% of Sino Clean Energy's revenue in past quarters.

Sino Clean Energy has a large cash position of $2.49 per share. Company's management has fiscal year 2011 revenue guidance of between $101.5 million and $110.7. The company expects Non-GAAP adjusted earnings to be in the range of $23.02 million to $24.80 million and full year adjusted earnings per share of between $0.98 and $1.06.

There is one analyst covering Sino Clean Energy. Crystal Equity Research has updated their Sino Clean Energy report on November 28th. They have a speculative buy rating with a $2.75 price target. Sino Clean Energy's share price ended year 2011 at $1.00. There is more than 100% upside potential for the company's share price if it was to trade just at the cash at hand value.


http://seekingalpha.com/article/316966-3-china-stocks-poised-to-double-in-the-next-12-months?source=yahoo