Replies to post #90 on China Armco Metals Inc. (CNAM)

[GorillaGorilla]

Yeah, I've not touched the margins of the core business to get the estimate.

Might have a look how they did in previous years... 2007 & 2008 say... from what we've seen of 2009 it largly dependent on the odd contract with a higher margin. But perhaps volumes have been higher in previous years?

13.2M rev. from 4Q09 to be recognized in Q1

There is? I didn't know that...

EPS 1.3 is looking doable assuming margins - if there is any additional ramping up then that's just gravey.

Lets hope these Texas procesessors don't start dotting up around China is an overcapacity kinda way... but I guess that's the good thing about the business - they are skilled at dealing with scrap metal already and this is just a value added service.

rich