Sino Clean Energy, Inc. (NASDAQOTH:SCEI)

CAPS Rating: 1 out of 5


Player Avatar TSIF (99.96) Submitted: 1/19/2011 5:43:44 PM : Outperform Start Price: $6.62 SCEI Score: -73.79

Sino Clean Energy, INC had a really nice 30% climb crossing into 2011 and I set a lower limit to see if I could catch it on a correction. It looks like I didn't set my limit low enough! After several rounds of watching other company's with "clean energy/coal" fall by the wayside and thumbing against them, I'm a little hesitant at one called Sino Clean Energy, especially since it's headquarter'd in China. Granted, China is the place to play on a growing need for clean energy, but it's also limited in upside from an investment standpoint due to investor skittishness over accountability. In this case, clean energy has more to do with how they pretreat the coal they sell than a magic wand. Earnings have been very consistant the last three quarters and I don't see any warning signs that existed on other China plays. Cash flow seems good and receivables VERY low. Their coal-water slurry fuel seems to have some merits and they claim to be sourcing from coal mines nearby at favorable prices. They've increased their customer base, added a factory and continue to expand at what appears to be a reasonable rate. They've seen $8 plus for different times in 2010 and I think their is more chance from this $6.50 range to break out than to drop off. Concern for China based company's will probably keep this one from seeing its full potential.

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