I've been an owner for about 3years now...
I'm hearing you...but these guys like to get there orders in first then they are extremely gifted on bringing on the addt'l production to meet that demand. They can probaly build new production @ Zibo w/in 6-9 months if needed & new facilities elsewhere (if needed) w/in 12 months.
They're taking the right approach by trying to diversify into foreign sales...Like I said they can meet any new demand in short order and these new sales will definitely grow their bottom line profit quite nicely.
I hear your arguments and what has been proven is only that the owned capacty to be brought on in the next 2 years could be absorbed by domestic applications alone.
The bigger picture goes unmet using a royalty model.
I have owned this company for years and met with management and I do not feel they have been procative enough using their patent rights as I have suggested to them.
On an earings basis, this stock will not grow very rapidly given the new MT's brought on through 2012 unless they change the biz model
Let's see... add 40,000MT capacity at Zibo. They just purchased a 20,000MT location and have plans to expand their through 2013 for an additional 250,000MT.
I would guess (to the previous poster) that they are adding an international sales guy because they plan to expand capacity by over 100% in the next 4 years.
"I question what do they do now until the newest facility comes on?"
They can put another 40k MT online at the recently constructed facility without having to construct a new facility. The site has a total capacity of 240k MT. Presumably permitting and construction of future expansions at this site will go much faster.
per the SEC filings regarding the recent acquisition, SDTH will add 40k MT of capacity by the end of 2010, 100k MT by the end of 2011 and 200k MT by the end of 2013.
I think management is being pretty aggressive with their growth plans. It will just take a little patience.