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Erik Wright  

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  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    The conference call and earnings were spectacular.
    The company answered very good questions and the prospects for the company seem very prosperous. Its actually ridiculously undervalued at the current share price and its nice to see that management thinks the same.

    Some of the highlights:

    -Prices increased from 1300 to 1500, in 2009 to 2010 for specialty chemical products. The company stated prices were even higher in Q4, near 1620, and that Q1 was looking even better.
    -There was a mention by the CFO that Q1 2011 was better than Q4 2010.
    -Current capacities are roughly 95% for specialty chemicals and 20% for bio diesels. Although utilization rates are higher for specialty chemicals they have been shifting production to concentrate on higher margin products which should help boost earnings even more.
    -the company is applying to have tax rate reduced from 25% to 15%.
    -They are capitalizing on their own provinces demand to lower transaction costs such as shipping costs as well as benefit from buyers picking up products directly from the factory which has reduced costs drastically.
    -the company anticipates to acquire a feedstock supplier with cash on hand and current cash flow which should boost margins by an additional 3-5% as well as add to earnings.
    -the company seems to be leaving towards the AMEX and as per my question it appears they do not want to do a reverse split and they believe that the share price will appreciate above 2$ within the next year. In my opinion this portrays the confidence management has in their company and their belief that the share price is undervalued.
    -In the future the company anticipates to expand through building another production plant with warrant money (when price reaches over $2 and after acquiring a feedstock supplier)
    -The company anticipates growing shareholder value through issuing more PR's and updates; attending more conferences to increase visibility of the company in the public's eyes, increasing its earnings and reducing risk by securing a feedstock supplier as well as listing onto a major exchange.
    -The Guidance of 0.36 does not take into account any acquisition, therefore in the event of an acquisition we can expect EPS to be higher.
    Mar 31, 2011. 11:51 AM | Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thank you Thomas,

    I am proud of CCGY's earnings, absolutely amazing results. With the best forward looking plans for the company and very nice projected EPS of 0.36 (This puts forward P/E at 2.777 currently). Also planning to make acquisition of potentially a feedstock supplier to grow and stabilize margins with CASH on hand! I have not seen many china small cap's say they will acquire with strictly cash. I plan to participate in the conference call tomorrow, I wish all CCGY investors or followers the best of luck and it appears it will be a prosperous year for China Clean Energy and hopefully a rewarding road for shareholders as well.
    Here are the highlights:
    Fourth Quarter 2010 Highlights

    * Revenue totaled $18.1 million, up 271% from $4.9 million for the fourth quarter in 2009
    * Gross profit totaled $4.3 million, up 378% from $0.9 million in the fourth quarter of 2009
    * Gross margin increased to 23.7%
    * Operating income was $3.8 million, compared to $0.3 million in the fourth quarter 2009
    * Net income was $ 2.2 million or $0.07 per fully-diluted share, compared to net income of $0.6 million or $0.02 per fully-diluted share in the fourth quarter 2009
    * Adjusted net income (Non-GAAP) was $2.9 million, or 0.09 per fully-diluted share for the fourth quarter of 2010, compared to $0.3 million or $0.01 per fully- diluted share in the comparable period of 2009. A table reconciling adjusted net-income, a non-GAAP measure, to its nearest GAAP measure is available elsewhere in this release.

    Fiscal Year 2010 Highlights

    * Total revenue increased to $59.0 million, up 270% from $15.9 million for the full year 2009
    * Gross profit totaled $12.2 million, up 260% from $2.9 million for the full year 2009
    * Gross margin was 20.7%, up from 18.5% for the full year 2009
    * Operating income was $10.2 million, up from $0.9 million for the full year 2009
    * Net income was $6.4 million, compared to a loss of $0.3 million for the full year 2009
    * Earnings per fully-diluted share were $0.20, compared to a loss of $0.01 in 2009
    * Adjusted net income (Non-GAAP) was $7.8 million, or $0.25 per fully-diluted share
    * Cash and cash equivalents totaled $13.6 million at year end

    Financial Condition

    As of December 31, 2010, China Clean Energy had $13.6 million in cash, approximately $15.1 million in working capital, and $5.3 million of debt. Stockholders' equity at December 31, 2010 stood at $39.3 million, or approximately $1.25 per share.

    Business Outlook

    "The macroeconomic environment in China remains positive, and we are excited with the opportunities to continue to deliver positive results in the quarters ahead. We expect our revenue and operating income in 2011 to be approximately $75 million and $14 million, respectively, as we benefit from our increased capacity as well as improving sales mix. We would also expect to see adjusted earnings reach $0.36 per fully-diluted share in 2011," stated Mr. Tai-ming Ou, China Clean Energy's Chairman and CEO.

    "As we look to the future, we hope to leverage our strengthening balance sheet and improving free cash-flow position to acquire upstream feedstock suppliers in the second half or 2011, with the goal to expanding our gross margins and securing feedstock supply. We believe that pursuing a partially or fully integrated upstream strategy will reduce the volatility of our operating results and maximize shareholder value in the long-run. We are currently actively searching for acquisition candidates, and we expect to be able to finance an eventual transaction with cash on hand as well as cash-flow from operations," concluded Mr. Ou.
    Mar 30, 2011. 11:30 PM | Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Just released preliminary guidance, looks very good to me, would suggest around 0.36-0.40 EPS for 2011. They are also suggesting better margins, always a plus for investors.
    Mar 14, 2011. 11:08 AM | Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    For those interested CCGY just announced Preliminary Results, it seems they may exceed my estimates:
    Mar 8, 2011. 11:02 AM | Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thank you for your interest Curious Investor,
    I personally have been in contact with the CFO trough email, he responds usually pretty quickly and gives quite elaborate and personal responses. As I have dealt with other China stocks and have emailed other executives from companies, he has surprised me as one of the most shareholder friendly executives. The problem with many other Chinese companies is most executives don't speak English but Mr. Chen their CFO seems to have very good English. The company also seems to encourage that they are shareholder friendly and that if any shareholder would want to visit their facilities they are welcome to do so. Although some things could be improved such as the Investment relations of the firm and PR announcements to shareholders, my personal impression of management is quite positive.

    As seen in the article the demand for these "clean products" are in high demand for many reasons including:
    The Chinese government increasing its commitment to promote renewable energy, motor vehicle growth in china, the spotlight on renewable or green chemical products as well as many more.

    As for uses;
    Biodiesel can be blended at any level with petrodiesel or used in its pure form for consumption in diesel car engines and farming vehicles.

    A list of their products include:
    * Monomer Acid
    * Stearic
    * Dimer Acid
    * Printing Inks
    * Dimer-Based Polyamide Hot Melt Adhesives
    * Low Molecular Weight Liquor Polyamide Resin
    * High Performance Polyamide Hot-melt Adhesive
    * Alcohol-Soluble Polyamide Resins
    * Benzene-Soluble Polyamide Resins
    * Biodiesel & Bio Heating Fuel

    All have quite diverse uses throughout the chemical industry. If you would like more information about CCGY as well as the application of some of these Chemical products you can refer to their slideshow:
    p.10 outlines the uses of certain products

    Hope that helps,

    Mar 2, 2011. 01:54 AM | 1 Like Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Retire Fund I have read your article and it was very well researched and will consider Talison as an investment. Although some may disagree with the growth of biofuels, CCGY has shifted away from biofuels to be more diversified which is why its main products represent specialty chemicals that have higher margins, large demand and large international customers. The article describes some background about the industry but was more to depict the evident value residing in the company itself as well as potential catalysts.

    As for Wind4me, seems to be quite an uninformed comment. It is a dollar stock, but how do you think many of the great companies you know today started off? Much higher returns can be achieved by doing some good due diligence and investing in quality small cap stocks. Although CCGY probably won't become a huge company in terms of market cap it does have some good growth prospects and will be uplisting to either the NASDAQ or AMEX. Its new facilities will help boost earnings which should help propel the stock higher.
    Mar 1, 2011. 10:46 PM | 1 Like Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thanks for the informative comment Thomas,

    for those who want more information about China Clean Energy their website is: www.chinacleanenergyin.../

    The IHUB board:

    The OTC Market
    Feb 28, 2011. 04:07 PM | 1 Like Like |Link to Comment
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