The only Chinese steel stock quoted in US markets other than GSI is China Precision Steel (CPSL). It recently issued earnings guidance of $14m net income for 2008. CPSL stock currently trades at $10.00 giving the company a market capitalisation of $348 million and puts it on a 2008 p/e of 25. When GSI concludes M&A #3, its EPS estimate for 2008 becomes $2.29. For reference, applying the same 25 p/e multiple to GSI equates to a stock price of $57.
goto the GSI yahoo page and read the chart of projected sales and net income included in the seeking alpha article or at the GSI website.
Those numbers are downright rediculous and as a value investor a 5.6 forward 2008 pe on earnings growth of 2000% is unbelievable... Either the company is lying completely about their numbers in which we sue and make a fortune or theyre telling true numbers and we make a fortune off their stock