China Precision Steel (CPSL) Shares Volatile - Jump 30%...We've Seen This
More News related to CPSL
- BeaconEquity.com Issues TraderNotes on Stocks: TCPS, FSLR, CPTC, SATC, GE, CPSL, CWSI, YGE
- China Precision Steel Products Awarded Technological Achievements Certifications
- China Precision Steel Joins Russell Indexes
- Unusual 11 Mid-Day Movers 6/17: MENT, CSIQ, FMD, CPSL Higher; INFN, TINY, CNK, ZION Lower
- China Precision Steel's Chairman and CEO to Donate $19.9 Million to the University of Hong Kong
More News related to Analyst Comments
- Deutsche Bank Comments on Recent Strength in Amgen (AMGN), Cites Positive Buy-Side Meetings
- Moody's Places Starbucks (SBUX) Senior Unsecured Ratings On Review Down
- Susquehanna Lowers Price Target on Isle of Capri Casinos (ISLE) to $8
- Goldman Sachs removed Anglo American (AAUK) from its Conviction Buy List
- Deutsche Bank Thoughts from Meetings with MGM Mirage (MGM) Management
Shares of China Precision Steel, Inc. (Nasdaq: CPSL) skyrocket over 30% in today's trading. The company reported Q3 earnings of $0.10, 5 cents better than the analyst estimate of $0.05. However, revenues for the quarter were $18.7 million, versus the consensus of $16.60 million (but a 61% increase year-over-year). Surprisingly, exports accounted for 19.0% of revenue, up from 2.3% a year ago
The company reported on its current financial situation: As of March 31, 2008, China Precision Steel had $14.3 million in cash and cash equivalents, no long term debt, total liabilities of $46.1 million and working capital of $61.2 million. Shareholders' equity was $111.1 million compared to $51.1 million as of June 30, 2007.
During the third quarter, in view of the recent iron ore price surge and tighter supply of hot-rolled steel coils in the market, China Precision Steel has increased purchase quantities directly from its major and strategic supplier, Baosteel Group, with the aim of ensuring a stable raw material supply and mitigating the impact of expected increases in the cost of raw materials. As the contract terms with Baosteel are 100% payment in advance, this is the primary reason for the $26.8 million increase in advances to suppliers as of March 31, 2008.
Investors and analysts have given a 'green light' to the growth in the Chinese markets, but shares of this company are very volatile and the current market cap of the company is over a quarter of a billion dollars (at today's $5.65 price). Back in Sept, 2007, shares jumped from $3.45 to $11.09 in six trading sessions with no significant news releases. The stock teetered around the $10 level, but two months later, fell back to $5. CPSL's price range in 2008 has been between $3-5 per share.[SM]
Related Categories
Analyst CommentsEarnings
Trader Talk
Stocks Mentioned
-0.18Sign up for StreetInsider Free!
Recieve full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
