Replies to post #42120 on China Growth Stocks

[GorillaGorilla]

SGZH $50 M of revenues from 1.2M tonnes.. so $42 a tonne - so low quality thermal or they are expecting coal prices to fall off cliff.

Based on our research and information provided, we expect that beginning operation in the third quarter of 2010 will deliver meaningful revenues from the mine this year and upwards of $50 million in revenues during its first full year of operation in 2011.

rich

[Drexion2004]

SGZH: Agreed. If, as they say, the new mine gives 50M revenues in 2011...At the current margins they have, that means almost 20M net income. Take 30% off that for the minority-interest and your down to 14M.

100/14 = 7x. Bleh.

Not the *worst* acquisition i've ever seen, but certainly not that good when you compare it to the terms with which PUDA/LLEN have made acquisitions.

-Fernando