Legan's  Instablog

Don't think China is the next gold rush?  I just did a search on Google for the past 24 hours on "China's economic growth" and got -292- hits then did the same for "america's economic growth" and got -4- hits.  Streach it out over the past month and you get 324 for America and 44,900 for China.  Sorry but we have Obama and China has the money money.   Two great stocks out there right now is CHLN and CHOP Golden Green Enterprises.  CHOP is so new to the NASDAQ SocialPicks does not have it listed.  I think CHOP will double in the next year.

“While the overall steel industry has recently experienced a period of excess supply, there is an increasing shortage in China of the high-end, high- value thin steel sheets and galvanized steel products that we produce ,” said Mr. Mingwang Lu, Chairman and Chief Executive Officer.

 -- Revenue increased 6.0% to $59.3 million from $55.9 million in the third
       quarter of 2008
    -- Gross profit increased 23.8% to $18.2 million from $14.7 million
    -- Gross margin increased 440 basis points to 30.6% from 26.2%
    -- Operating income increased 18.9% to $16.2 million from $13.6 million
    -- Operating margin increased 300 basis points to 27.3% from 24.3%
    -- Net income attributable to common stockholders increased 115.9% to
       $11.5 million, or $0.29 per diluted share, from $5.3 million, or $0.18
       per diluted share
 

Gross profit was <money> </money> $18.2 million compared to <money> </money> $14.7 million for three months ended <chron> </chron> September 30, 2008, an increase of 23.8%. Gross margin was 30.6% compared to 26.2% for the same period last year. The increase in gross margin was mostly due to the introduction of higher-margin chromium-coated products, which the Company first began producing in 2009.

Total operating expenses were <money> </money> $2.0 million, or 3.4% of sales, compared to <money> </money> $1.1 million, or 1.9% of sales, in last year's third quarter, an increase of 87.2%. The increase in both dollar amount and margin was primarily due to added professional fees from maintaining the Company's U.S.-listed public company status. Operating income was <money> </money> $16.2 million, or 27.3% of sales, compared to <money> </money> $13.6 million, or 24.3% of sales, in the same period last year, an increase of 18.9%.

The Company currently has six cold-rolled steel production lines assisted by two acid pickling lines with an annual production capacity of approximately 250,000 tons, and one chromium production line with an annual production capacity of approximately 50,000 tons. The Company expects to use most of the proceeds received from its recent public equity offering to construct a new production facility, including two 75,000 ton chromium-coated production lines to be commissioned in the second half of 2010 and one 100,000 ton zinc-coated production line to be commissioned in 2011. This expansion is expected to increase the Company's annual production capacity to 500,000 tons by 2011.

For the fourth quarter of 2009, the Company expects to achieve revenues of between <money> </money> $40 million and $50 million and net income of between <money> </money> $8 million and $10 million, before accounting for one-time expenses of approximately <money> </money> $2.5 million associated with the Company's recent public equity offering.

Long CHLN CHOP