Armco Metals: News Around the Industry
Shanghai index continues 7-year high
Chinese stocks rallied on Friday, with the benchmark Shanghai index up 2.2 percent to a seven-year high.
The Shanghai Composite Index gained 92.47 points to close at 4287.3 points, while Shenzhen Component Index climbed 1.3 percent to 14,149.34 points.
Airline stocks led the gain on Friday, with Spring Airlines surging by the daily limit of 10 percent, and Hainan Airlines by 7.9 percent. China Southern Airlines, gaining 8.5 percent, earlier announced that it expected a turnaround in its first-quarter earnings, crediting the Belt and Road Initiative as a major contributor.
The coal sector rebounded, with industry giants China Shenhua Energy and Yanzhou Coal Mining Group climbing 3.5 and 2.7 percent respectively on Friday.
Economists expect the central bank to deliver another cut on benchmark interest rates and the reserve requirement ratio in the coming months, as the country's economic growth fell to a six-year low of 7 percent in the first quarter, according to government data released on Wednesday.
Key infrastructure projects in railway, water works, environment protection, energy and utilities are also expected to speed up construction and together with other supportive measures buttress real activity from May, UBS Securities wrote in a note.
My conclusion is the stock is underpriced and manipulators know it. The volume this week is nothing more than funds buying stock. You watch when the 13f-hr's start coming out what happens. It will be another increase. Please don't get me wrong...1.5% institutional ownership is nothing to write home about but it keeps going up. Also for the record in case someone doesn't know what a net - net stock is I've posted the definition. It tells me that this is very underpriced...
"A net-net is a stock that is trading below the value of it's current assets (cash, receivables, inventory) minus all liabilities (short term liabilities, long term liabilities, all debt)."
Sentiment: Strong Buy
3 Basic Checks To Value Cheap Net Net Stocks
Apr. 14, 2015 1:34 PM ET | 3 comments | About: Emerson Radio Corp (MSN), Includes: AMCO, DCTH, OPTT, SGOC, SHOS, STRI
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
•What is a net net and what characteristics do they hold.
•A short list of net net stocks in the US market.
•3 basic checks to perform on net-nets to see whether it's worth investing in.
With such a hot market, a section of the market that is clearly overlooked is the cheap Graham net net market.
Net Net stocks has the following characteristics:
•big glaring issues
•bad management team
•often penny stock prices
The term net net comes from Graham, when he first came up with Net Current Asset Value and Net Net Working Capital.
NCAV = Current Liabilities - Total Liabilities
You can see how cheap a stock is if the price is below NCAV per share.
Basically worth nothing more than the tangible assets in the balance sheet.
But net net's aren't totally useless because these ugly stocks are certainly overlooked.
Nobody wants to be holding a piece of junk that you can't show off to friends.
I maintain a list of net nets to look at once a while, but during this bull market, the list is definitely thin.
•Armco Metals Holdings (NYSEMKT:AMCO)
•STR Holdings (NYSE:STRI)
•Ocean Power Technologies (NASDAQ:OPTT)
•Emerson Radio Corp (NYSEMKT:MSN)
•Delcath Systems (NASDAQ:DCTH)
•Sears Hometown and Outlet Stores (NASDAQ:SHOS)
•SGOCO Group (NASDAQ:SGOC)
Do your own research but numbers coming out of Q1 reporting shows it's going to be strong...
"Apr 13 2015. China Mar steel exports rise 13.9% to 7.7mln t ... "
China’s steel exports up 62.5% in February 2015
March 12, 2015
"China exported 7.8Mt of steel in February 2015, up 62.5% from the same period last year..."
Profit up 339%
Losses down 425%
Receivables up 68%
Liabilities down 22%
Payables down 45%
Loans down 38%
Revenue down single digit but only because they chose not to do bad business....
And yet KSN whines about 2.6 cents versus .26 cents??? KSN previously whined because they didn't make money; now they make money and finds something else to whine about.
could be next week right? I keep hearing earnings are 03/27 or 04/02.
I don't know if anyone saw it but last Monday's front page of the WSJ tells the real story of China Steel...
the exports will actually salvage this year for them and here's the data...
January exports up 63% over last year...
59% higher than 2 years ago...
On pace to export more steel than any country this century...
Exports to U.S. was up 40% in January compared to last year...
Imports to India from China up 200% compared to last year...
The reality is the domestic industry inside China is bad as being reported but for some reason it's rare the real story is told that the Steel industry in China is going a record pace. This will only be stopped if other countries implement tariffs to slow the beast which is possible but will take a very long time due to red tape.
Again, I'm just reporting facts and not pumping or bashing with no substance...make up your own mind but data always speaks volumes...as an old friend of mine said many times...
"In god we trust...everyone else bring data!"
GLTA this week
March 19, 2015
...Armco (Lianyungang) Renewable Metals, Inc. convened an exchange meeting with some of their suppliers recently. The meeting aimed to accelerating the “platform model” and increasing the “direct delivery”. Direct delivery means Armco (Lianyungang) rents their equipments to some of their suppliers with good credit who process the raw materials on their own yard as required and deliver the processed good to our customers directly, by which logistic lost reduces, sales revenue increases and market share improves...
Exact quote: "soaring"...
Scrap markets across China were in a downward slide except market in Hebei, where eyed a gain of 40 yuan a tonne thanks to soaring Tangshan billet prices.
More business with Baosteel will be announced soon. The billet busy is actually extremely positive.
..Bucked up by the upbeat of steel billet, rebar prices in Northern region started to inch up last week and rebar price in Beijing gained 150 yuan/tonne in three days last week, which further beefed up futures market with the price of contract 1510 rebounded 67 yuan/tonne...
China crude steel production 65.5mt in January
...China’s net finished steel exports (exports minus imports) in January were 9.1 million tonnes based on a record high volume of exports at 10.3 million tonnes. January net exports were 68% higher than in the same month last year. And finally, net exports as a portion of crude steel production in January stayed about the same as in the past few months at 14%, but much higher than the 8% level seen in January 2014....
Armco Metals: Corporate News Archive
March 13, 2015
"Armco Management including the Chairman paid a vist to Cronimet Shanghai Co.,Ltd on March 13, 2015. The two parties have a discussion on the cooperation of non-ferrous scrap business.
Cronimet Group ,a multinational company established in 1980 and with its headquarters located in Germany, is engaged in processing raw materials for stainless steel and trading for several kinds of scrap."
they all know it's finally upon us...a success story. I was doing my taxes and had to look back 2 years for my last purchase date. I hope this time it all goes well.
Yes but Yahoo seems to be blocking responses. I responded to you a couple times and it didn't show. They are helping keep the price down.
There will be a lot of manipulation over the next couple weeks though. This may touch a dollar before panic sets in and everyone starts buying. There's no way once earnings date is officially announced anyone will be sitting out; not this time. We'll see some days of 2M - 3M shares trades easily. it's going to be a wild ride this time out.
I agree with you points above; I'd love to see that revenue number with about $1.50 per share positive earnings. We might touch $10 per share if that happens :) one can dream.
Ok go ahead TGN you can bash me now...
It looks like it is but go to NASDAQ.com and look at the Institutional Investors... A lot of new blood bough in this last cycle. Something's up. Also Renaissance and KCG increased. KCG increased over 1000%. There were some selling but overall the numbers went up.
It's got to be an error...they reported 436,400 shares which would be up from 40,050. Did they really buy almost 400,000 shares? They are one of the most successful funds in world history. Do they know something?
Zeder...you are reading Cowboy's post wrong. They state $1M bought now 1 Million shares. Either way management keeps loading up. No management loads up if things are bad...earnings should have a run up. Let's hope.
I can tell you with 100% confidence that when earnings approach the stock moves up and if you want to make guaranteed money buy prior and sell just before call. After the call who knows...it's a run away train in either direction. I've had ample shares of the stock on and off since 2012. You can make money on this because it's so volatile. Now for my opinion...its real this time and I wouldn't sell just before earnings. my 2 cents...
Sentiment: Strong Buy