China Armco Metals is a leading distributor of imported metal ore with a plan of action to launch a new state of the art scrap metal facility in their home country. With their unique business structure, China Armco has caught the attention of Toro Research which issued a speculative buy on the company.
According to the Toro Research Report, the recommendation was based primarily on China Armco’s revenue performance for the first half of 2009 as it relates to current market trends in the commodity industry and the company’s expanding growth. Within the Toro Report, China Metals received a rating of 8.5 out of 10, which is a strong rating for the young company. With this kind of research and positive news being generated, China Metals may become a global power before too long.
While the revenue performance in the first half of 2009 played a critical role in the report, many investors feel that another reason for the China Metals’ rating was the recent announcement of completing delivery of iron ore pursuant to a contract that will generate sales of close to $16 million in the third quarter of 2009.
When asked about the recent delivery, China Metals CEO and Chairman Kexuan Yao was quoted as saying, “We are pleased to deliver larger sized orders to the steel industry as we look to build on the strong sales efforts we are making in the third quarter. We are carrying strong momentum into the busiest sales period of the year for our industry and remain very optimistic about our prospects for the remainder of this year and into 2010. We believe the environment for our customers remains strong and our anticipated metals recycling business launch places the company in a position to experience record performance in the coming years.”
Currently, China Metals is trading in the $3.07 range and has soared far beyond its 52-week low of $0.32. With the speculative rating of “Buy” from Toro Research and strong revenue numbers, China Metals may be a diamond in the rough.
If you’d like to read the complete report, visit the Toro Research website at: http://www.tororesearch.com/reports/CNAM/CNAM_092809.pdf.