This company is growing tremendously, but no one follows this stock. Take a look at some of the numbers first and then I will discuss a few other points of interest:

So what happened? I think a few things. One, the stock has only a 2 million share float so it can move dramatically. Also, I believe momentum investors bid the stock up and then moved on to other opportunities when technical support was broken. Then, the company announced earnings which were $1.02 per share for fiscal 2007 versus fiscal 2006 net income from continuing operations of $0.19 per share as revenue increased 60.7% to a record $46.8 million. That seems tremendous, so why did the stock sell off?

Sales for the three months ended June 30, 2007 approximated $88,740,000 up from sales of $75,455,000 for the three months ended June 30, 2006. Net income for the three months ended June 30, 2007 was up over 55% at $10,178,000 or $1.02 per share versus $6,557,000 or $0.67 per share for the three months ended June 30, 2006. Based on the Company’s comments in the press release it seems as if these results should be expected to continue.

The outlook for earnings from operations continues to be strong with orders on hand increasing significantly during the first half of the year from the already unprecedented record levels at the end of 2006.

In addition to what Cameron wrote, I have been researching ShengdaTech (SDTH) for the last week and find the future to be very exciting. Here are the reasons why:

They company had $39 million in cash and no debt as of March 31, 2007.

The Company announced blow out earnings last week, but only one side of the growth story of this company is even showing up in the financial results to date. SYNL reported first quarter results that produced an eye-popping 405% increase in net earnings to $3,525,000, or $.56 per share, on a 23% sales increase to $44,398,000. This increase was due to the metals business, where sales increased 37% in the first quarter of 2007 from the same quarter a year earlier and operating income surged 402% to $5,620,000. Also, the company generated a lot of cash in the quarter totaling over $6,000,000. Let’s first look at the metals side of the business.

The metal business has transformed into an energy piping play where it sells into growing energy markets including LNG (liquid natural gas), ethanol, petroleum, biofuel, power generation (including nuclear), waste water and electric utility industries. By moving towards these end markets SYNL has increased margins as it produces much more specialized products. The company has continued to invest in its production capabilities and capacity with additions completed in 2006 and expected in 2007 which should lead to continued growth.

Haynes International, Inc. is a leading developer, manufacturer, marketer and distributor of technologically advanced, high-performance alloys, primarily for use in the aerospace, land-based gas turbine and chemical processing industries. The Company’s customers include General Electric Co. (GE); Pratt & Whitney; Rolls Royce plc (RYCEY); The Boeing Co. (BA); SNECMA; E.I. DuPont de Nemours & Co.; The Dow Chemical Co. (DOW); Siemens Westinghouse (sI); Solar Turbines, Inc.; British Petroleum p.l.c.; Celanese AG (CZLNF); and Eli Lilly and Co (LLY).

HAYN is in the same space as huge winners over the last year Titanium Metals Corporation (TIE), RTI International Metals (RTI) and Allegheny Technologies Incorporated (ATI). On March 21, Mr. Cramer said:

Headquartered in Van Nuys, California, the Company also designs, manufactures and markets equipment and systems used in the testing and production of semiconductors, and distributes semiconductor processing and testing equipment manufactured by others.

Specifically, MEA reported Q2 EPS of $0.12 vs $0.05 in 2Q05; revs rose 49% YoY to $57.3 mln. That puts MEA at 23 cents in EPS for the six months ended June 30, 2006. Also, the company had EBITDA of over $7.6 million for the quarter.

MEA is a scrap metal recycler and lead products fabricator and with higher commodity prices the business is booming. However, the company recently announced a nice acquisition (Niles Iron & Metal) that should send MEA to the next level in a few quarters (even if commodity prices come down). Furthermore, Niles Iron & Metal sold roughly 226,496 tons of scrap in 2005, producing revenues of $65.6 million. For the twelve months ended June 30, 2006, Metalico and Niles Iron &Metal generated combined revenues of approximately $256 million.

The company said 'exceptionally strong factory utilization and manufacturing efficiencies' accounted for the dramatic outperformance. Additionally, it seems like things may only be getting better as the company indicated:

MIKR is up about 40% to around $14 as I write this and looks like this may be the week it gets into the top 20.

Yet the thing that intrigues me the most from a trading standpoint is that I have verified that this stock will debut in the top 30 of the Investors Business Daily [IBD] 100 if it gets to the minimum price of $15. That could yield huge returns, as IBD followers have been bidding up low float stocks that have made the IBD 100. For reference check DXPE, IFO and ERS. All of these stocks are off their highs but they had huge runs once getting into the IBD with their low floats.