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China Gengsheng Minerals, Inc. Message Board

  • parlover55 parlover55 Aug 27, 2010 2:50 PM Flag

    Bargain price.

    From a few valuation metrics.

    Currently out of favor chineses stock are price at 1.5 times sales. Which prices us at 1.50 -1.60

    In dark days of 2008 and 2009 chgs low was .80 --- so I still believe that is absolute floor with management still holding 70% of the shares.

    Now this is a growing company -- Refractories are steady at 11 million quarter. Proppants are at 5 million/quarter with Q3 and Q4 having the bulk of sales. Heck were already at 12 million in sales for the years blow out my number which I thought was 2 million/quarter.

    Now ceremics does 400k/quarter which gives us a run rate of 64 - 68 million this year. Which I think its doable with just the 3 products lines.

    Lastly most of us are counting on big growth from the FPA line, which is getting launch in the next couple weeks. It will be interesting to see if that can push CHGS up over 70 million run rate for 2010.

    If this happens could CHGS do 100 million in 2011 or 2012. Possibly a 25 million/quarter run rate should not be too far out in the future.

    Mangement said two thing that were important to me in the last CC. First a big export propannt contract was going to happen soon. Check deliver. And that a smaill initial order for FPA for 500k was happening. Which may or may not produce a PR. Management is very transparent, listens well and delivers, which I liked a lot

    I think CHGS is a steal at todays rock bottom prices and have bought a lot of shares in the past few days. I think the Q3 CC and Q4 CC will have some pleasant surprises for us shareholders.

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0.000.00(-90.00%)Jul 26 9:50 AMEDT