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2morrowsGains

12/02/10 10:35 AM

#61347 RE: bUrRpPPP! #61295

SGZH...Sleeper of all sleeper's! Estimating approx $0.41 EPS for Q4...
http://finance.yahoo.com/news/US-China-Mining-Group-prnews-372119771.html?x=0&.v=1
That will crush lasts year's $0.06 and it will also beat 2008's Q4...
http://www.nasdaq.com/aspx/revenueepssummary.aspx?symbol=SGZH&selected=SGZH
Leads me to believe Q1 & Q2 of next year will come in stronger than 2009 which totaled $1.39 EPS in the first half of the year. And SGZH won't even be at full production until May!
Cash & equiv = $40M which jumped almost $8M QoQ. Cash flow from operations was over $10M in Q3. I'm expecting SGZH's cash position to REALLY jump over the next few quarters. (Should be OVER $50M by end of this year). They basically have no receivables and their total liabilities are only $12.5M.

BTW, last night China announced a freeze on coal prices (supplied to power firms) through 2011...
http://news.alibaba.com/article/detail/energy/100421662-1-china-orders-freeze-term-coal.html
If anything, this will make SGZH stick out even more as we head into 2011 due to the fact that their earnings will be making a huge jump due to their increase in production.

SGZH is DEFINITELY a stock for the watch list!! Just my opinion though.

From yesterday's PR...

- "The Company expects to be at the full production of 600,000 tons when all upgrades have been completed, in May of 2011."

- "Upon completion of these programs and modifications, the Xing An mine will be able to maintain coal processing operations year-round and will increase coal production from 600,000 metric tons per year to 900,000 metric tons per year pending approval from local Government in 2012."

- "We are also expanding our efforts to pursue other mining properties and short term production opportunities which could be revenue contributors for us in the 2011 fiscal year."
http://finance.yahoo.com/news/US-China-Mining-Group-prnews-372119771.html?x=0&.v=1