SDTH

[kslifka]

SDTH breaking to new highs.

Undervalued China play

[Se7en]

Are you still following this one kslifka? Looks like it's found a bottom here and will start moving up ...
Just bought 3000 shares @5.96$.

[pinoleropuro]

you could be on to something! 

http://www.stoxline.com/quote.php?s=sdth

[Se7en]

lol, only see now that news was out! 
Chart looks good imo...


ShengdaTech Begins Production of New NPCC Lines
Tuesday July 17, 8:30 am ET
Adds 40,000 Metric Tons Capacity

TAIAN CITY, China, July 17 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech" or "The Company") (Nasdaq: SDTH - News) a leading manufacturer of nano precipitated calcium carbonate (NPCC) and coal-based chemical products in the People's Republic of China ("PRC"), today announced it completed the addition of 40,000 metric tons of annual NPCC capacity at its factory in Xianyang City, Shanxi Province.

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ShengdaTech added two new lines, each with 20,000 metric tons of annual capacity, to its factory at Shengda Industrial Park. The new lines utilize the Company's advanced cost-efficient membrane diffusion technology which lowers production costs of NPCC particles by 5-7% compared to the traditional ultra-gravity method. The membrane diffusion method also provides better quality NPCC particles, providing a broader range of market applications. ShengdaTech is currently developing a number of new NPCC applications in various plastics.

ShengdaTech invested approximately $10 million for the equipment, which increases annual capacity at the factory to 100,000 metric tons and total annual capacity to 130,000 metric tons. The Company expects the new lines to operate at full capacity by November 2007. Assuming full utilization and using current prices after value added tax for NPCC products, the additional 40,000 metric tons of production capacity is equivalent to approximately $15 million in potential additional revenues to ShengdaTech.

"We are very pleased with our progress to date in expanding our capacity. We opened our new factory at Shengda Industrial Park with 60,000 metric tons of capacity in the fall of 2006 and quickly ramped up to full capacity by December 2006. Our new factory is located close to high quality limestone and uses cost-efficient membrane diffusion technology which have the combined effect of reducing our production costs of NPCC particles by 30%," commented Mr. Xiangzhi Chen, CEO of ShengdaTech. "We are excited about opportunity for our NPCC products as we develop new applications and expand into overseas markets. We expect NPCC to continue contributing to our revenue growth and gross margin in the future, in fact, as previously announced, our plans call for another expansion of NPCC capacity as early as December of this year."

http://biz.yahoo.com/prnews/070717/cntu013.html?.v=27

[fous]

i wrote up an analysis a few weeks ago you can see here.

Disclaimer: Im long SDTH

http://china.seekingalpha.com/article/38867

Another guy wrote a follow up to my analysis here:

http://china.seekingalpha.com/article/39129

[bjc]

Looking to take a position soon.  If the fundamentals keep up the way things look, SDTH is easily a $10+ stock.  If the growth of this NPCC business keeps growing at any pace like this, SDTH is potentially a $20 stock. 

Just starting to get attention, golden cross in a couple days, nice consolidation could be complete.

Applaud to fous.  Found it on his site earlier today..nice thing he's got going there.

[bjc]

I bought SDTH at 5.95 2 or 3 weeks ago, which turned out to be a terribly timed buy.

I'm still confident with this stock though, and it's shown a nice turnaround in the last couple days.  I've noticed on Fous' message board that he sold, but Se7en held.  I'm also still holding.

Looking forward to earnings tomorrow.  If they announce the 9c analysts expect, they'll have a PE of 14.  They're growing, building NPCC lines constantly, making mroe and more money, this stock should be valued in the double digits.  If they surprise to the upside tomorrow, I can see the stock moving up easily double digit percentage.

Nice bounce on the weekly MACD last week and this week.

[Se7en]

Yep, still holding! 

Earnings are out, looks like they beat with 0.11 EPS, estimates were 0.09!



ShengdaTech, Inc. Reports Second Quarter 2007 Results
Thursday August 9, 1:00 am ET


TAIAN CITY, China, Aug. 9 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech") (Nasdaq: SDTH - News), a leading manufacturer of nano precipitated calcium carbonate (NPCC) and coal-based chemical products manufacturer in the People's Republic of China ("PRC"), today reported financial results for the second quarter ended June 30, 2007.

    Second Quarter 2007 Highlights
    -- Revenue for the second quarter increased 58.7% year-over-year to $22.7
       million
    -- Revenue from NPCC segment tripled year-over-year to $10.8 million
    -- Gross margin increased 580 basis points year-over-year to a record
       33.8%, as higher margin NPCC products contributed to a larger
       percentage of total revenue
    -- Net income for the second quarter increased 91% year-over-year to $6.0
       million
    -- Began trading on the NASDAQ Capital Market

Revenues for the second quarter of 2007 increased to $22.7 million, up 58.7% from $14.3 million in the same quarter of 2006. The increase in revenues for the quarter was primarily driven by growth in the NPCC business. NPCC represented 47.7% of total revenues for the quarter with the remaining 52.3% generated by the chemical segment. Gross profit increased 91.5% year- over-year to $7.7 million from $4.0 million in the same period a year ago. Gross margin was a record 33.8% as a result of the increased contribution of NPCC products to revenue. Net income increased 91.0% to $6.0 million from $3.2 million in the second quarter of 2006. Fully diluted earnings per share for the second quarter of 2007 were $0.11 compared to $0.06 in the second quarter of 2006.

"We are very excited to see another strong quarter with increasing revenue contribution from our NPCC business. We continue to see strong demand for NPCC as a functional filler in a diversified number of applications. Both our NPCC facilities operated at full capacity during the quarter with over half of our sales derived from our long-term clients," commented Mr. Xiangzhi Chen, President, CEO and Director of ShengdaTech. "Moreover, we successfully added seven new domestic clients and one Malaysian client, which marks our expansion into the international markets for NPCC."

Revenue from the NPCC segment was $10.8 million for the second quarter 2007, up 207.8% from $3.5 million in the second quarter of 2006. The large year-over-year revenue growth is due to the addition of the new Xi'an, NPCC facility in Shaanxi Province, in September 2006 with 60,000 metric tons of NPCC capacity. On a sequential basis, revenue from the NPCC segment increased 20.6% from the first quarter of 2007. The sequential increase was derived from a 21% increase in volume, to 28,029 metric tons of NPCC sold from 23,164 metric tons of NPCC sold in the first quarter of 2007. NPCC for use in the production of tires and PVC remained the largest contributors to revenue representing 51.4% and 34.4% of total NPCC revenue, respectively. NPCC for use in latex and adhesives applications experienced the strongest growth in the second quarter of 2007, up 263.9% quarter-over-quarter, representing 8.5% of NPCC revenue compared to 2.8% of NPCC revenue in the first quarter of 2007. NPCC for use in printing ink and paints accounted for 5.7% of revenue in the second quarter of 2007.

Revenue from the chemical segment for the second quarter of 2007 was $11.9 million, up 10.0% from $10.8 million in the second quarter of 2006. On a sequential basis, revenue from the chemical segment was down 10.2% quarter- over-quarter due to a 15-day closure of the chemical factory to upgrade equipment in April 2007. The new equipment is expected to reduce raw material cost and improve operating efficiencies at the factory. For the second quarter of 2007, liquid ammonia generated $4.1 million, or 34.1%, of the total chemical revenue. Revenue from ammonium bicarbonate represented 30.2% of total chemical revenue while melamine and methanol represented 16.9% and 18.7% of total chemical revenue, respectively.

Gross profit increased to $7.7 million in the second quarter of 2007, up 91.5% from $4.0 million in the same quarter of 2006. Gross margin for the quarter was a record 33.8% compared to 28.0% in the same quarter a year ago. Gross margin was favorably impacted by the increased in NPCC products as a percentage of overall product mix and from higher gross margin realized from the new Xi'an factory when compared to the original factory, 46.1% versus 36.0%, respectively. The higher gross margins at the Xi'an factory were due to the use of the company's proprietary membrane dispersion technology combined with lower raw materials and labor costs, which together lowered the overall cost of goods sold at the Xi'an factory by 30% compared to the original factory.

Selling expenses were $355,855, or 1.6% of revenue, in the second quarter of 2007 compared to $204,449, or 1.4% of revenue, in the second quarter of 2006. General and administrative ("G&A") expenses were $722,280, up 11.4% from $648,416 in the second quarter of 2006 primarily due to expenses incurred as a result of being a publicly listed company (NASDAQ). As a percentage of revenue, G&A expenses decreased to 3.2% in the second quarter of 2007, down from 4.5% in the second quarter of 2006 due to increased cost efficiencies as the Company has grown in scale.

Operating income for the second quarter of 2007 was $6.6 million, up 109.2% from $3.1 million in the same period a year ago. Operating margin was 29.0% in the second quarter of 2007, up from 22.0% in the second quarter of 2006.

Net income for the second quarter of 2007 was $6.0 million, up 91.0% from $3.2 million in the second quarter 2006. Net income for the second quarter includes a tax provision of $618,404, as the tax holiday on income generated from the original factory ended on December 31, 2006. Fully diluted earnings per share for the second quarter of 2007 were $0.11 compared to fully diluted earnings per share of $0.06 in the second quarter of 2006.

Six Month Financial Results

For the first six months of 2007, total revenue was $44.9 million, up 46.5% from the first six months of 2006. Revenue from the chemical business was $25.1 million, up 7.3% from $23.3 million in the same period a year ago, representing 55.8% of total revenue. The NPCC business comprised the balance of 44.1% of revenue at $19.8 million, up 172.5% from $7.3 million in the first six months of 2006. Total gross profit for the first six months of 2007 was $14.6 million, up 80.1% from gross profit of $8.1 million in the comparable period a year ago. Total gross margin was 32.6% compared to 26.5% for the first six month of 2007 and 2006, respectively. Income from operations for the period was $12.6 million, up 94.0% from $6.5 million in the first six months of 2006. Net income for the first six months of 2007 was $11.4 million, up 72.0% from $6.7 million in the first six months of 2006. Fully diluted earnings per share were $0.21 for the first six months of 2007 compared to $0.13 in the first six months of 2006.

Financial Condition

As of June, 2007, ShengdaTech had $27.6 million in cash and cash equivalents, no long-term debt and $30.2 million in working capital. Shareholders' equity stood at $70.0 million up from shareholders' equity of $57.1 million at December 31, 2006. The company generated $13.8 million in cash flow from operating activities in the first half of 2007.

Business Outlook

In July 2007, ShengdaTech completed the addition of 40,000 metric tons of NPCC capacity. The new lines are expected to be at full capacity by November, 2007. The Company also plans on completing instillation of an additional 60,000 metric tons of capacity by year end 2007. Total NPCC capacity, once all lines are completed, will be 190,000 metric tons. Capital expenditure for the year 2007 is expected to be $54 million, of which $16.2 million has already been spent. Of the balance of $37.8 million, approximately $33.0 million is intended to be used for the construction of the additional NPCC capacity. ShengdaTech reaffirms its guidance for full year 2007 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.

"We are rapidly expanding our market share as we build our leadership position in the NPCC market in China. Currently, we are in the testing process with a number of potential new customers, including 12 PVC manufacturers, 20 tire manufacturers, 15 latex makers, 25 adhesive producers, and four paper makers. We expect to add five to six new clients in the third quarter 2007. In addition, we recently doubled our sales team to 60 sales agents," commented Mr. Chen. "Overall, we expect to see continued strong growth in our NPCC products as we bring on additional capacity and increase our marketing efforts."

[kslifka]

I like the look of this....

Break-out may hit tomorrow of 6.95

[livermore]

Fundamentals are strong PE 16 FPE 11. Stock seems to be pulling back.
What do you think is in the stars for the stock?

[livermore]

Nice to see the Bullish Engulfing candle emerge from the little pennant
always like that formation.

I was hoping to see that when I asked the question. Interesting to see where we end
the year at.

With 42% growth for the next 5 years and a forward earnings of 12 I think there has to be
upward advancement for this stock.

Net income 91% is nice to see.

[bjc]

Did anyone hold on to SDTH?  It has been a top performer...

The fundamental story was right there in front of our face when the stock was <$5, but the activity in the stock at the time was so terrible..I wonder what the deal was. 

Anyway, hopefully someone held on to this one and made some cheddar.

[bjc]

SDTH continues to make new highs. 

I wish I hadn't sold mine for $5.09!  Oh well, there's always another one..

[kslifka]

If you like Ag/fertilizers; you should like SDTH.

After consolidating a couple of weeks...looks ready to move to new highs.

[REALDEALS21]

Watch it tomorrow !