3SOF

QuoteSSRX made it's debut at #13 and $18.60 on the IBD 100 today.

hehe, CHME.OB is in the same business as SSRX, sells and profits about double and has 1/10 of the market cap. Talk about market inefficiency.

QuoteChina Digital TV holding Co., maker of smart cards and TV access control software debuted it's IPO Friday, first day up 75%. Three more Chinese co's plan IPO's this year, look for Fuqi Inernational, - Jewerly,  Noah Education and Longtop Financial technologies.

It seems the Chinese supply is increasing ... but demand is even higher. Anyway, over the long term I believe each case is a unique case, there are very overvalued and very undervalued Chinese stocks outthere. I would go with the undervalued ones.

(I'm going to follow your suggestion and create a thread to discuss emerging markets stocks here at the Main Portfolio message board. Thanks).

SDTH is one of those undervalued Chinese stocks, with the special ingredient that it makes a unique product in the entire World, not a copy from the West. NPCC may very well be sold worldwide a few years from now. Management has that long term plan, after they address China's demand, which still seems to be more than 10 times the current supply. That's why SDTH has a 26.6% net profit margin.

I'll keep holding SDTH for the long term.

SDTH isn't rising because some of the following 19 investors are selling their stakes:

«Organization and nature of operations  - On March 2, 1998, a group of 19 investors (referred to herein as the Investors), of which Mr. Chen Xiangzhi (Mr. Chen) holds a controlling interest, formed Shandong Shengda Nano Co., Ltd. (Shengda Nano) under the laws of the People's Republic of China (PRC).»

The CEO of the company and largest shareholder (Mr. Chen Xiangzhi) isn't selling any. Other members of management are also holding on to their shares:

«ShengdaTech also confirms that the recent filing to sell 1,830,000 shares of the Company's common stock is by six investors who invested in ShengdaTech prior to the Company going public. These investors are not members of management or related to the management team. The Company confirms that there have been no sales of common stock by officers and directors of ShengdaTech.»

There are always buyers and sellers, but there's no doubt fundamentals are improving rapidly and that is set to continue:

«The increase of total revenue from our NPCC business was $7,310,663 or 207.84% for the quarter ended June 30, 2007 compared to the corresponding period of the prior year. The increase was mainly due to (i) $7,298,089 additional revenue from an increase in sales by 19,382.50 tons as a result of our capacity expansion, (ii) additional $168,321 from the change of the exchange rate between RMB and USD, which was offset by the $155,747 revenue decrease as a result of the decreased sales price. The average sale price of NPCC for the second quarter of 2007 was $17.34 lower per ton compared to the corresponding period of the prior year. We have a cost advantage due to the adoption of new technology and lower raw materials cost at our Shannxi NPCC facilities. As a result, we sold our products to our customers  at a more competitive price while being able to maintaining our gross profit margin.»

NPCC's demand is soaring and as we've seen in Michael's post, this seems to be just the beginning.

I see $0.9 EPS in 2008 for SDTH (analysts expect $0.59), the stock is trading at 7.4 times forward earnings.

I'll continue holding SDTH for the long term.

In at $6.65.  Thanks for the tip.

Hi
I'm also in at $6.45  ...
We could see another good move for the chines stock soon ..

Hi David,

Are SDTH and CHME going to be in the fire portfolio now?

Quote from: buddjas1 on October 09, 2007, 01:24:22 PM
In at $6.65.  Thanks for the tip.

You're welcome buddjas1

Quote from: Garoh on October 09, 2007, 07:27:51 PM
Hi
I'm also in at $6.45  ...
We could see another good move for the chines stock soon ...

Yeah, but I wouldn't put them all in the same bag.

Quote from: tokyopua on October 09, 2007, 08:58:48 PM
Hi David,

Are SDTH and CHME going to be in the fire portfolio now?

No, I think the Fire Portfolio doesn't make much sense in the current context and my investment philosophy, and my plan is to close the Fire Portfolio when it reaches 100% of return. My advice is for anyone investing in stocks to spread his capital across 15 different holdings, no less, and no more than this number.

Going back to SDTH, I see 100% revenue CAGR for the next three years, a 25% net profit margin and a 20 times earnings multiple (excluding any bubble potential) and if these estimates are right the stock should only be sold at $41.24, 514% above where it is now:



I'll continue holding SDTH for the long term.

Great volume & price explosion. Beautiful 3ML .
Congrats David

Quote from: jorgegr on October 10, 2007, 01:22:34 PM
Great volume & price explosion. Beautiful 3ML .
Congrats David

Yes congratulation to David - On a downday the 3SOF port is up 1.45%. Stellar performance 

BAMM!!! With authority BABY!  SDTH just broke past its all time high of $8.25

Congrat David, I missed the bang but am happy to see 3SoF punch the hell out of market. Like Tyson hitting Wall St.

Hmm. Kind of a disappointing reversal in the markets today. Probably just setting the bears up for a bigger kill, but I think SDTH was going down today regardless of what the market did.

Sorry to burst anyone's bubble  here and I'm not going to be popular for saying this, but I sold most of my SDTH today. I already had  concerns about it and intended to sell some, but after this came out I decided to sell most today if only temporarily.

http://www.forbes.com/2007/10/11/shengda-tech-nanotechnology-markets-equity-cx_vk_1011markets04.html?partner=yahootix

The stock does appear  undervalued for growth, but I don't believe NPCC is exclusive at all to SDTH. So I have some questions. Maybe the process by which they claim they can produce it cheaper is exclusive and patented, but not NPCC itself. Is it really any cheaper or better than other processes? Is it actually used to enhance other products, or is it just used as a substitute (cheap) filler in other products like rubber, paper, plastics, etc. Is there a real barrier to entry here? After all limestone is one of the most plentiful substances in the world.

Early insiders selling, costs of coal (their other chemicals), how are they paying for the expansion, big short interest, I think it was/is on the reg SHO list, and Nano-hype.  Anyway I'm not trying to bash, just voicing concerns, and maybe David or others can look deeper and put some concerns to rest. Until then I will have to remain a trader and not an investor in SDTH.

I would also watch the A/R and aging. We wouldn't want to see this (or any others) become another Bodisen Biotech where they were sellin "exclusive and patented" bull sh*t ---- literally. Anyone know whatever happened to them anyway?

Here is an early filing if anyone interested;

I think you made a mistake selling SDTH.
This stock reminds me of GIGM a month or so ago.
Too cheap and high China Growth!
I agree with you on this point:
"Probably just setting the bears up for a bigger kill"
We might be in one of the biggest bull markets we have seen since the dot com era.
Just my opinion of course :-)

Quote from: BigSully1 on October 11, 2007, 05:03:15 PM
Hmm. Kind of a disappointing reversal in the markets today. Probably just setting the bears up for a bigger kill, but I think SDTH was going down today regardless of what the market did.

Sorry to burst anyone's bubble  here and I'm not going to be popular for saying this, but I sold most of my SDTH today. I already had  concerns about it and intended to sell some, but after this came out I decided to sell most today if only temporarily.

http://www.forbes.com/2007/10/11/shengda-tech-nanotechnology-markets-equity-cx_vk_1011markets04.html?partner=yahootix

The stock does appear  undervalued for growth, but I don't believe NPCC is exclusive at all to SDTH. So I have some questions. Maybe the process by which they claim they can produce it cheaper is exclusive and patented, but not NPCC itself. Is it really any cheaper or better than other processes? Is it actually used to enhance other products, or is it just used as a substitute (cheap) filler in other products like rubber, paper, plastics, etc. Is there a real barrier to entry here? After all limestone is one of the most plentiful substances in the world.

Early insiders selling, costs of coal (their other chemicals), how are they paying for the expansion, big short interest, I think it was/is on the reg SHO list, and Nano-hype.  Anyway I'm not trying to bash, just voicing concerns, and maybe David or others can look deeper and put some concerns to rest. Until then I will have to remain a trader and not an investor in SDTH.

I would also watch the A/R and aging. We wouldn't want to see this (or any others) become another Bodisen Biotech where they were sellin "exclusive and patented" bull sh*t ---- literally. Anyone know whatever happened to them anyway?

Here is an early filing if anyone interested;

BigSully1 congrats....I sold some this morning as well.   

We can always buy back.

Quote from: wxmang on October 11, 2007, 05:48:52 PM
I think you made a mistake selling SDTH.
This stock reminds me of GIGM a month or so ago.
Too cheap and high China Growth!
I agree with you on this point:
"Probably just setting the bears up for a bigger kill"
We might be in one of the biggest bull markets we have seen since the dot com era.
Just my opinion of course :-)

The difference between GIGM and SDTH, at least for me, is that GIGM has "proven" itself and SDTH has not. Therefore I treat GIGM like a great investment and SDTH mostly like a trade until such time that SDTH proves itself. I'm not just picking on SDTH, there are many others that buyers should be asking questions on and are not, they are just buying anything Chinese that looks like it's breathing.  Most of those I'm also treating like trades. You can bet at least some will be very disappointed, sooner or later.

It could be that by the time SDTH proves itself to me, it will be much higher. If thats the case, then I will still have some holding to add to. I rarely sell all of anything I buy. Anyway, I'm not trying to argue whether SDTH is a good investment or not, because right now, I just don't know, Just bringing up what I think are legit concerns, because after all, David and the portfolio is now about investment for the LT and not just trades, aren't they?

Congrats to you Kslifka also. You're really staying on top of the China trades aren't you? Keep up the good work.