3SOF

Maybe some of our stocks will be included. Anyway,i like the trend.

       

Press Release Source: Claymore Securities, Inc.


Claymore Offers First China Small Cap ETF
Wednesday January 30, 9:35 am ET 
Investment Opportunities in China are Growing


LISLE, Ill.--(BUSINESS WIRE)--Claymore Securities, Inc. today announced the launch of the Claymore/AlphaShares China Small Cap Index ETF (AMEX: HAO - News) on the American Stock Exchange. This ETF is the first ETF focused on small cap Chinese companies, and is Claymore's second China-focused ETF.
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China's economy has soared to $10.1 trillion in 2006 from $545 billion in 1982, according to the National Bureau of Statistics China Statistical Yearbook. However investors looking for opportunity in China may not have adequate exposure. "Gaining exposure to Chinese small caps can be difficult because most other Chinese investment products are market-cap based. In those ETFs, small caps represent only a small percentage of assets at best and in the most widely held Chinese ETF, small caps currently have no representation," said Christian Magoon, Senior Managing Director and Head of the ETF Group for Claymore Securities. "But with the introduction of HAO, investors now have the opportunity to diversify among existing Chinese investments through exposure to small cap companies."

"China's 1.3 billion residents are consuming more, creating more and with the country's increasing economic clout, they've become important global consumers," says Burton Malkiel, Chief Investment Officer of AlphaShares, Inc., the Fund's Index Provider, and the author of From Wall Street to the Great Wall: How Investors Can Profit from China's Booming Economy. Malkiel, also author of A Random Walk Down Wall Street, says, "This is an opportunity for retail investors to access the emerging small cap market in China. Because historically most investment has been in large cap Chinese stocks, we feel the valuations of small cap stocks are attractive and present good potential for long-term growth." Malkiel is the Chief Investment Officer of AlphaShares, Inc., the Fund's Index Provider. AlphaShares receives a fee from the Fund for the use of its Index.

Claymore/AlphaShares China Small Cap Index ETF (AMEX: HAO - News) seeks investment results that correspond generally to the performance, before the Fund's fees and expenses, of an equity index called the AlphaShares China Small Cap Index. The Fund will normally invest at least 90% of its total assets in common stock, American depositary receipts ("ADRs"), American depositary shares ("ADSs"), global depositary receipts ("GDRs") and international depositary receipts ("IDRs") that comprise the Index. The Index is rebalanced and reconstituted annually.

The Index is designed to measure and monitor the performance of publicly-traded mainland China-based small capitalization companies. The Index is maintained by Standard & Poor's and is published on the AlphaShares website at www.alphashares.com. A float-adjusted capitalization maximum of $1.5 billion and a minimum of $200 million are used for initial portfolio construction and eligibility. A float-adjusted capitalization of less than $1.75 billion and greater than $150 million are required for ongoing inclusion in the Index. Only shares open to foreign ownership are included in the Index. These include all Hong Kong listed securities including China H-Shares and Red Chips, and N-Shares trading in New York and their equivalents trading in other foreign markets. China A-Shares and China B-Shares are not eligible for inclusion nor are debt or quasi-debt securities such as convertible securities.

About Claymore Securities

Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, servicing or distribution on approximately $18.5 billion in assets as of December 31, 2007. Claymore currently offers exchange-traded funds, unit investment trusts and closed-end funds. Claymore Advisors, LLC, an affiliate of Claymore Securities, serves as investment adviser to the Fund.

About AlphaShares, Inc.

I'm going to reduce the Main's exposure to SDTH from the current 13.8% to 12%, so I can buy 5% of capital in MALL.

I continue to love SDTH as much as before, just need to free a little bit of capital, so I don't go into margin.

It looks obvious that the 2008 EPS estimates for SDTH will need to be revised higher:



You see, the company already made $0.14 EPS in Q3 2007, up from $0.11 in Q2 2007. If the company just keeps doing as well as it did in Q3 2007, that is, earning 14 cents per share, it will then earn $0.56 in 2008. But it's almost a sure thing that there's going to be strong growth, mainly because of two issues:

1) More NPCC capacity coming online in 2008 and ...
2) NPCC's share of the company's revenue will continue to rise, which has the effect of increasing profit margins.

I would say that a more fair estimate would be something like $0.21+$0.24+$0.27+$0.30 = $1.02 EPS in 2008. This would be up from ... well, now I also see that (well, not now, I think I referred to this also in previous updates) the 2007 EPS estimate is too low. The one analyst covering the stock still has $0.49 as his estimate for 2007, but SDTH already earned $0.43 in the first nine months of the year ... I think it will report something between $0.15 and $0.17 in Q4 2007, bringing the full year number to something between $0.58 and $0.60, way above the $0.49 still expected. Say SDTH will earn $0.59 EPS in 2007. According to my $1.02 estimate for 2008, it represents 72.9% growth and the stock is trading at just 13.2 times that estimate.

Even though I reduced SDTH's exposure from 13.8% to 12% on Friday, its share of the Main is back up to 12.8% already. My hands are not weaker, they are stronger now, because I feel more comfortable after diversifying some more ...

I'll keep holding SDTH for the long term.

Wednesday, February 13, 2008 08:00 ET

TAIAN CITY, China, Feb. 13 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech") (Nasdaq: SDTH) a leading manufacturer of nano- precipitated calcium carbonate (NPCC) and coal-based chemical products in the People's Republic of China ("PRC"), announced today that its Vice President of Finance, Ms. Wendy Fu will present at the upcoming Roth Capital Partners "20th Annual OC Growth Stock Conference".

The Roth Capital Partners "20th Annual OC Growth Stock Conference" is a four-day event featuring presentations from over 300 small-cap companies including over 40 U.S.-listed Chinese companies from a number of sectors, such as technology, healthcare, energy, industrial and consumer products.

    Date:    Wednesday, February 20, 2008
    Time:    8:30 a.m. Pacific Time
    Venue:   The Ritz Carlton Laguna Niguel; Dana Point, California

    Live webcast:  http://www.shengdatechinc.com

Interested parties and institutional investors may register for the conference by visiting the conference website at http://www.rothconference.com/ or by calling Roth Capital Partners at (800) 678-9147.

About ShengdaTech, Inc.

ShengdaTech Inc. is engaged in the business of manufacturing, marketing and selling nano-precipitated calcium carbonate ("NPCC") and coal-based chemicals for use in various applications. The Company converts limestone into NPCC using its proprietary technology. The unique chemical and physical attributes make NPCC a valuable ingredient in tires, paints, polyvinyl chloride ("PVC") building materials and other products. NPCC enhances the durability of many products by increased strength, heat resistance, and dimension stabilization. The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides. For additional information, please visit the Company's website at http://www.shengdatechinc.com .

    For more information, please contact:

     Crocker Coulson, President
     Leslie Richardson, Financial Writer
     CCG Elite
     Tel:   +1-310-231-8600
     Email: [email protected]
            [email protected]

SOURCE ShengdaTech, Inc.

More information on SDTH from article on February 14th.  To all, good health and trading.
Poli


Try The China Perspective Free  Chemicals 
The China Perspective   
Thursday, February 14, 2008 15:55:59
Small particles drive ShengdaTech
By AMY CHEUNG

ShengdaTech is China's only approved supplier of nano precipitated calcium carbonate (NPCC) products to the domestic tire industry. NPCC, which is a functional filler used in rubber, plastics, paint, ink, automobile tires and PVC building materials, is made from limestone broken down to particles of ~100 nanometer (nm) in size, smaller than the wavelength of visible light. Combined with a strong presence in the agricultural chemicals sector, the company has secured a 10% share of the US$150 million domestic automobile tires market for NPCC. With record third quarter earnings of $27.2 million in the bag, up 44.4% from the third quarter of 2006, the NASDAQ-listed company is eyeing to pick up a larger slice of the domestic pie and expand into offshore markets. CEO Chen Xiangzhi talked to Amy Cheung from The China Perspective about China's domestic chemicals sector and the company's expansion plans.

The China Perspective: According to your Q3 earnings report, ShengdaTech has launched five new nano precipitated calcium carbonate (NPCC) production lines and begun construction on three more lines at the NPCC factory in Xianyang city. What is driving your expansion, and do you plan to further expand capacity?

Chen Xiangzhi: Undoubtedly, China's rapidly growing manufacturing industry offers a great opportunity for our NPCC products. Our NPPC particles are produced using the most advance technology – membrane dispersion technology – which produces one of the highest quality and most stable NPCC particles on the market today. Because of the unique properties of our NPCC particles we are the only manufacturer to produce NPCC for use in tires. Currently, 47% of our revenue generation is from NPCC used in tires. Through our R&D efforts, we intend to continue pioneering new applications for NPCC.

Our new NPCC lines will have a production capacity of 60,000 metric tons per year, and it should reach full capacity four to five months after launch, which will be in July or August 2008.

Regarding further expansion plans, we will consider that after the new lines reach full capacity. Once the company makes any decision on that, we will update our shareholders and the public.

TCP: Your stock on NASDAQ seems to be on a downward trend despite record 3Q07 results. What is your view on this phenomenon?

CXZ: We don't comment on the market fluctuation on our stock price. We believe that if we continue to consistently grow our business, maintain strong gross margins and profitability as well as remain committed to our investor relation program, the market will provide a fair valuation for our stock.

TCP: What is your guidance for Q407 and 2008 earnings?

CXZ: We have not provided guidance for Q407 or 2008. Our guidance for the full year 2007 is for revenue to be in the range of $96 million to $98 million and net income to be in the range of $23.0 million to $24.4 million with fully diluted earnings per share of $0.43 to $0.45.

TCP: ShengdaTech's key products are used in tires and fertilizers. Going forward, what is your view on the outlook for these sectors?

CXZ: So far, we are the only NPCC manufacturer whose NPCC products have been successfully applied to the tire industry in China. The tire industry, like so many industrial sectors, is still in its early growth stage. In addition to the major metropolitan markets, the markets in rural areas have also opened up because rural consumers there, including farmers, now have higher earning power and are able to afford cars. According to recent national population research, 807.39 million people live in rural areas in China, making up 63.91% of the total national population. With that, we believe suburban and rural areas will be a huge market for China's automotive and auto part industry.

The majority of our chemical products are used in farming areas, for instance chemical fertilizer. As a big agricultural country, agriculture, farms and farmers are still critical to China's economic development. The central government has issued many policies that favor the agriculture sector and it's believed that the PRC will continue to support the industry with favorable policies. This has created great opportunities and huge potential for the agricultural products industry.

The management is confident in the growth opportunity for NPCC and even though the chemical businesses is a mature market, we remain open to acquisitions opportunities should they meet our requirements.

TCP: ShengdaTech has appointed new R&D and finance executives. What does this mean for the company? Do you foresee further changes in key posts?

CXZ: It reflects our effort to develop new products and retain high-quality professionals with international background in order to meet international standards and build our presence in international markets. We will continue looking for international professionals in various areas, such as sales and marketing, as we push forward our exporting business plan to European and North American countries.

TCP: Is it likely that China's domestic chemical sector will consolidate in the future through M&A activities?

CXZ: We do believe that China's chemical industry will consolidate through M&A, but it depends on market conditions in the different sectors and regions. China's government has successful experience in upgrading and consolidating traditional industries through working with private-owned enterprises, and we believe the government will apply the same strategies to the chemical industry which will offer us great opportunities.

TCP: ShengdaTech is the only company approved to sell NPCC products to the Chinese tire market, but the company has only secured a 10% share of the US$150 million NPCC market in China. Do you have any plans to increase your market share?

CXZ: We have established a strong reputation in the tire industry for the use of NPCC in tire manufacturing. Doublestar, the largest tire manufacture in China, submitted a dissertation at the 14th China Technology Research Conference on Tire manufacturing. The dissertation was titled "Application of Active Nano-Calcium Carbonate in Tires" and was published in Tire Industry magazine. We will continue providing first-class products and services to our customers and develop new applications within the tire industry to maintain and grow our market share.

In the meantime, we will explore new applications in areas such as rubber, painting, latex and other industries, with the ultimate aim of establishing the same dominance in these new areas as we have achieved in the tire industry. China's NPCC market is an emerging market; the key characteristic of the market is that there are many producers of NPCC but they do not provide the consistency or quality of product that we do. Moreover, there are no defined industry standards or regulations. Under such circumstances, we intend to set the industry standard for NPCC products and build the dominant position. Already we are the largest manufacture of NPCC in China and we are continuing to increase our capacity. The increased capacity will enable us to work with larger manufactures in the future.

SDTH Roth conference:
http://www.wsw.com/webcast/roth16/sgat.ob/
wednesday 11.30 am

QuoteMore information on SDTH from article on February 14th.  To all, good health and trading.
Poli

Quote from: la-onda on February 19, 2008, 01:42:15 AM
SDTH Roth conference:
http://www.wsw.com/webcast/roth16/sgat.ob/
wednesday 11.30 am

Thanks for posting these Poli and La-onda

One of the many things I like about SDTH is that it helps making products which are perishable, like tires, paper, paint and so on. These products will always be bought, used and then bought again, giving SDTH a steady flow of revenue and profits.

Once a big manufacturer chooses SDTH's NPCC, it will probably adhere to it for years to come.

The company persists on its 2007 full year guidance:

QuoteTCP: What is your guidance for Q407 and 2008 earnings?

CXZ: We have not provided guidance for Q407 or 2008. Our guidance for the full year 2007 is for revenue to be in the range of $96 million to $98 million and net income to be in the range of $23.0 million to $24.4 million with fully diluted earnings per share of $0.43 to $0.45.

It is obvious that they'll earn more than $0.44 EPS in 2007, since they already made $0.35 EPS in the first nine months of the year ($0.14 in the 3rd quarter) and said there no seasonality in its business. In fact, Q4 2006 had EPS of $0.11 compared to $0.09 in Q3 2006.

So I would say SDTH makes $0.16 in Q4 2007 for a full year EPS of $0.51.

But more important will be their guidance for 2008, which they will probably give. I'll be looking for something like $0.75 EPS.

SDTH isn't undervalued now, but I see it as the kind of business that is safe and will keep growing strongly over the long term. It isn't overvalued either.

According to fundamental trends, in a couple of years time SDTH will be a $30 - $40 stock and I'll keep holding for this outcome.

SDTH already released the slides of today's Roth conference:

SDTH conference slides

It's a nice summary of SDTH's business and long term investment story. However, there's nothing new here and management insists on that 2007 guidance

I don't know if they're being conservative or they're warning us not to expect a great 4th quarter result. I mean, why wouldn't they raise the guidance now, since they probably already know what the number will be?

Maybe it is their policy to just give annual guidance and then just change at the occasion of the annual report.

I have this "little" doubt about the short term.

Longer term, given SDTH's innovative technology, its current penetration in the market it serves (about 10%), its expansion to new applications for NPCC and its international expansion, I'm pretty confident that SDTH will grow EPS at least 30% for 5 years to come. And a 30% grower with a 25 p/e is better than a 10% grower with a p/e of 10, even if the multiple of the 1st company contracts and the multiple of the second expands. 

Let me give you an example:

Company X earns $1 EPS in 2007. It grows 10% a year and has a p/e of 10. In 5 years time the stock will be worth 61% more. If the p/e expands to 15, it will be worth 141% more.

Now let's take the 30% grower with a 25 p/e being reduced to a p/ of 20 in 5 years. Company Y had an EPS of $1 in 2007. In 5 years time its EPS will be $3.71. Apply an earnings multiple of 20 and get a $74 stock, 197% more than it is now.

Of course, if multiples stayed the same (instead of the 1st company expanding and the second contracting) the differences would be even greater. The 1st company would be up 61% while the 2nd one would be up 271%.

SDTH is clearly of the second company type. I don't have any doubts that SDTH will grow EPS by at least 30% a year over the next 5 years. And it can be more ...

I'll keep holding SDTH for the long term, despite a few doubts about the next quarter's earnings.

The conference call was a little confusing regarding the earnings for 2007.

On the third slide SDTH management indicates an EPS of .47, but on the 25th slide SDTH indicates and EPS of .43 to .45.

An analyst brought this up on the conference call.  Management indicated that some of the information was outdated and encouraged shareholders to listen to the up-coming conference call in mid-March. 

I don't know what to take out of this?  Was management just using these slides for illustrative purposes and less concrete  guidance?

Quote from: kslifka on February 20, 2008, 02:28:44 PM
The conference call was a little confusing regarding the earnings for 2007.

On the third slide SDTH management indicates an EPS of .47, but on the 25th slide SDTH indicates and EPS of .43 to .45.

An analyst brought this up on the conference call.  Management indicated that some of the information was outdated and encouraged shareholders to listen to the up-coming conference call in mid-March. 

I don't know what to take out of this?  Was management just using these slides for illustrative purposes and less concrete  guidance?

The $0.47 is the TTM (trailing twelve months) number and the $0.43-$0.45 is the guidance they set at the beginning of 2007 but I'm confident they'll beat their guidance. They need just $0.09 to meet the guidance and I'm expecting at least $0.15 EPS in the 4th quarter.

I still didn't listen to the conference and will update this analysis before tomorrow's open.

Ouch...I guess the Roth Conference didn't inspire anyone.

Quote from: kslifka on February 21, 2008, 02:05:46 PM
Ouch...I guess the Roth Conference didn't inspire anyone.

Hi kslifka, I guess yesterday's sell off was due to two factors:

1) Many people (like myself) have good profits in SDTH and every time the general market goes down people rush to take some money (or all the money) out of SDTH's table.

2) There was a lot of confusion on yesterday's conference about SDTH's guidance. This also happened in prior conferences which led to short term sell offs and a subsequent recovery.

To me it was crystal clear that management said the company will beat its 2007 guidance of $0.43-$0.45 EPS. This guidance was something they made in the beginning of the year and didn't change even as results started being better than expected. Maybe they didn't change the guidance because their bonus is tied to by how much they exceed expectations. Maybe they just prefer to be conservative and positively surprise people.

Because they maintained their guidance many people fear that 4th quarter EPS will be $0.09 to meet the guidance, which is way below the $0.14 achieved in the 3rd quarter. But this is nonsense to me, I think they'll do at least $0.15 in Q4 2007 and $0.5 in the full year.

Moreover, their 2008 guidance will probably be something like $0.7-$0.8 EPS.

I remain confident in SDTH's long term outlook and I'll keep holding the stock.

SDTH's management is doing a terrific job. The following press release was just out:

• ShengdaTech Introduces NPCC for Use in Polyethylene
PR Newswire (Wed 8:00am)

Plastics is bigger than tires, which is currently the major market for SDTH. SDTH's long term potential is awesome, recession or not.

I'll keep holding SDTH with strong hands throughout all ups and downs and expect this stock to be a multi-bagger for the Main Portfolio in a few years time.

Hi

To those who haven't bought this stock yet ...

It's a gold chance to get in around $10   

I'm back after I sold it a month ago ..

yikes!
this is being dropped like a hot potato, I wish I would have gotten out of it this morning. 
the daily stochastics are ripe for buying but the weekly stochastics are still pointing downward I don't know why I missed that! 
there seems to be strong support around 8.47/share.
then the daily stochastics and weekly stochastics will be lined up and ripe for loading up.
JMHO