Replies to post #61411 on China Growth Stocks

[2morrowsGains]

SGZH...A Sleeper of ALL Sleeper's...IT's SIMPLE MATH...

SGZH earned $0.25 per share in FY2010 Q3.
They are projecting $0.41 EPS for Q4 (based on current share count).
THAT IS A 64% QoQ INCREASE.

Here's the CLINCHER...The Xing An mine re-opened in November 2010, meaning the 64% increase in projected Q4 EPS ONLY INCLUDES 2 MONTHS (or less) of production from the Xing An mine. And since the production RAMP-UP will run into May 2011, sales should increase every month for the next 6 months!!
Based on the above info, Q1 2011 EPS could come in 60%+ higher than Q4 2010, and Q2 2011 could come in 40%+ higher than Q1...

Here are my FY2011 EPS projections (based on the current diluted share count of 15.4M & current strength in coal)...

Q1...$0.65+
Q2...$0.91+
Q3...$1.00+++
Q4...$1.00+++

And the above estimates are NOT high IMO. Take a look at what SGZH's EPS was for the first 6 months of 2009 before the Xing An mine was shut down for the overhaul...
http://www.nasdaq.com/aspx/revenueepssummary.aspx?symbol=SGZH&selected=SGZH

Five weeks ago when U.S China Mining Group announced they were re-starting operations in their Xing An mines, SGZH was trading @ $4.84...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56135481
Today SGZH is trading @ $7.39, there is a VERY tight hold on shares, and based on the above estimates, SGZH is trading at a forward PE of approx 2.

More to post later. Until then...

SGZH = STRONG Hold, Wait, and Accumulate (IMO)...