SDTH via the fertilizer business could be as big in China as POT is to the USA? further, am I wrong in thinking of SDTH as much more diversified than POT at this point in time? I'm not trying to lead anyone here but I wonder if I'm wrong or not...I see POT in the $160's with a projection of possibly being a $300 plus stock and SDTH rather humble in comparison to POT's #'s....
Nope! the sweet spot is in NPCC, which the only comp. I found is on Mineral technolgy (MTX). However MTX made no emphasis on NPCC (I suspect NPCC not MTX's strengh), rather more on PCC. SDTH has superior technology in dispersing which results in higher purity, that increases the addressable market in great deal. The annoucement on the breakthrough on automobile coating is a big one, which may increase the unit price sold. NPCC's potential in China is only constrained by SDTH's manufacturing capacity.
On fertilizer side, the comp. is more likely to be TRA rather than POT. However, the to-be-acquired Jinan fertilizer will triple SDTH's chemical division sales by a very small $$ investment. That's a nice boost to SDTH especially their fertilizer gross margin was just up 300 base points.
The reason I will pay more attention to NPCC is that NPCC is a proprietary technology vs. fertilizer somewhat commodity (still with short-term great optimistic picture).
in addition to possibly being strongly undervalued in comparison to other companies - there is also the liklihood of a short squeeze coming;
ShengdaTech Inc. $ 9.52 SDTH 0.17
Short Interest (Shares Short) 4,475,200 Days To Cover (Short Interest Ratio) 19.0 Short Percent of Float 14.85 % Short Interest - Prior 4,734,000 Short % Increase / Decrease -5.47 % Short Squeeze Ranking™ 234
% From 52-Wk High ($ 15.57 ) -63.55 % % From 52-Wk Low ($ 3.95 ) 58.51 % % From 200-Day MA ($ 9.30 ) 2.31 % % From 50-Day MA ($ 9.03 ) 5.15 % Price % Change (52-Week) 83.00 %
Shares Float 30,140,000 Total Shares Outstanding 54,202,036 % Owned by Insiders 44.39 % % Owned by Institutions 10.90 % Market Cap. $ 516,003,383 Trading Volume - Today 359,006 Trading Volume - Average 235,500 Trading Volume - Today vs. Average 152.44 % Earnings Per Share 0.53 PE Ratio 17.60 Record Date 2008-AugA