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SHENGDATECH INC Message Board

  • terrorist_shorter terrorist_shorter Jan 2, 2008 6:10 PM Flag

    Nice article

    China in the 21st century conjures up another time of go-go markets, our own Gilded Age when steel, coal and capital fused to create the greatest economy in the world. While China�s present boom has something to do with coal and capital, it has as much to do with nanotechnology and university partnerships.

    Witness ShengdaTech, Inc. (Nasdaq: SDTH), which is applying 21st century technology to become a new leader in a decidedly old-line business. Shengdatech�s leading product is nano precipitated calcium carbonate (NPCC), made from limestone broken down to particles of ~100 nanometer (nm) in size, smaller than the wavelength of visible light.

    NPCC is a key filler used in rubber, plastics, paint, ink and as a coating for paper. NPCC is also a key ingredient in the manufacture of automobile tires and PVC building materials, enhancing their tensile strength and durability. Shengdatech is currently the only supplier of NPCC to China�s burgeoning tire industry, and they�ll buy as much as Shengdatech can make.

    What�s more, Shengdatech has developed, with Tsinghua University, a newly patented �membrane dispersion� production process that reduces the cost of producing NPCC particles by 5-7% over its current �ultra high gravity precipitation� process. Membrane dispersion also increases yields and provides more stable product quality.

    Shengdatech (originally Zeolite Exploration Company) was created through the reverse acquisition of Faith Bloom Limited, a maker of coal-based chemicals, including ammonium bicarbonate and liquid ammonia (used in nitrogen-based fertilizers and as the raw material of many chemical products), as well as melamine and methanol. These more humdrum products have generated the cash to fund Shengdatech�s push into advanced processing of NPCC.

    The company is clearly on to something. Revenues for the third quarter ended Sept. 30 were $27.2 million, up 44.4% from $18.8 million in 2006. For the first nine months, total revenue was $72.0 million, up 45.8% from $49.4 million a year earlier.

    The surge in revenues can be traced to the on-lining of additional NPCC production capacity, including two new production lines (40,000 ton capacity) added in July. Total NPCC production capacity is expected to be 190,000 tons once the current phase of construction is completed, an increase of 111% from 90,000 tons at the beginning of 2007.

    NPCC production contributed 48.3% of total revenues in the third quarter versus 28.5% in the year-ago period. (Chemicals provided the balance of revenues.) The new product mix is having a great effect on profitability. The company�s gross margins increased to 35.6% in the third quarter 2007 compared with 29.7% a year ago. Net income was up smartly to $7.8 million, 62.7% ahead of the third quarter of 2006 ($4.8 million). Fully diluted earnings per share totaled $0.14, compared with $0.09 in the third quarter 2006.

    All this activity has translated into a strong balance sheet. Shengdatech ended the third quarter with $41.1 million in cash and cash equivalents, no long-term debt and $39.0 million in working capital.

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    • That was a good read where did you find it?

    • Nice strong growing company.

    • Those are early investors man, hell I would take some profits also. You know them Chinks don't pay themselves much.

    • If it is sooo good, why are all the officers of the company selling?


      Transaction Date Name/
      Position Transaction Type Current Average
      6 Month Return Market Value Shares Price Range Total Holdings
      December 14, 2007 Fen, Hu
      Other Planned Sale -- $52.1K 5,506.00 -- - -- --
      December 14, 2007 Meiling, Tan
      Other Planned Sale -- $9.5K 1,000.00 -- - -- --
      December 14, 2007 Yu, Mingshan
      Other Planned Sale -- $53.8K 5,506.00 -- - -- --
      December 14, 2007 Zhao, Hun
      Other Planned Sale -- $134.8K 14,314.00 -- - -- --
      December 14, 2007 Liu, Baocheng
      Other Planned Sale -- $315.5K 33,033.00 -- - -- --
      December 14, 2007 Wang, Fuxin
      Other Planned Sale -- $156.9K 16,517.00 -- - -- --
      December 14, 2007 Li, Jiayou
      Other Planned Sale -- $31.6K 3,258.00 -- - -- --
      December 14, 2007 Shan, Guangmin
      Other Planned Sale -- $71.3K 7,500.00 -- - -- --
      December 14, 2007 Wang, Lanian
      Other Planned Sale -- $5.3K 551.00 -- - -- --
      December 14, 2007 Peichao, Wang
      Other Planned Sale -- $105.6K 11,011.00 -- - -- --
      December 14, 2007 Sun, Jianping
      Other Planned Sale -- $54.1K 5,506.00 -- - -- --
      December 14, 2007 Zhang, Canxiang
      Other Planned Sale -- $53.4K 5,506.00 -- - -- --
      December 14, 2007 Yue, Peihua
      Other Planned Sale -- $293.0K 30,000.00 -- - -- --
      December 14, 2007 Chen, Ping
      Other Planned Sale -- $21.5K 2,202.00 -- - -- --
      December 14, 2007 Chen, Xin
      Other Planned Sale -- $9.8K 1,000.00 -- - -- --
      December 13, 2007 Jicun, Fang
      Other Planned Sale -- $64.6K 6,607.00 -- - -- --
      December 13, 2007 Chengyong, Sun
      Other Planned Sale -- $116.6K 11,932.00 -- - -- --
      December 13, 2007 Fuming, Liu
      Other Planned Sale -- $53.0K 5,781.00 -- - -- --
      December 13, 2007 Yingchun, Guo
      Other Planned Sale -- $25.0K 2,753.00 -- - -- --
      December 13, 2007 Ruiqin, Zhu
      Other Planned Sale -- $53.8K 5,506.00 -- - -- --