Arabian American Development Company (ARSD)

hall9999 (99.59) Submitted: 6/26/2008 12:09:50 PM : Start Price: $5.70 ARSD Score: -46.50

I found this company while hunting through a list of OTC stocks. It appears to be a solid business with good prospects and good fundamentals.

"Arabian American Development Company engages in the manufacture of various specialty petrochemical products and development of mineral properties in Saudi Arabia and the United States. The company, through its subsidiaries, owns and operates a petrochemical facility located in southeast Texas, specializing in petrochemical solvents and other petroleum based products. Arabian American also has a mining project in Saudi Arabia, which is under development and is expected to produce zinc, copper, gold, and silver when it is put into production. In addition, it owns and operates three pipelines. The company serves companies in the chemical and plastic industries."

BIGBIGDADDYDOG (< 20) Submitted: 5/8/2008 9:58:15 PM : Start Price: $6.49 ARSD Score: -46.24

industry demand for their products will remain strong well into 2009.

Dapperatom (< 20) Submitted: 5/1/2008 4:27:49 PM : Start Price: $6.23 ARSD Score: -43.08

I like the below $10 price and its potential for a good return.

creek79 (< 20) Submitted: 4/25/2008 1:42:23 AM : Start Price: $6.26 ARSD Score: -44.55

These are my favorite types of stocks. A little small cap in an industry that loves m and a. with oil rising high and a shortage on the horizon this company is set to rocket. The five year growth rate is enough to make a turtle drool.

LetterA (26.21) Submitted: 4/6/2008 2:50:50 AM : Start Price: $6.85 ARSD Score: -48.42

Testing a portfolio of companies that start with the letter "A".

metoo105 (99.06) Submitted: 4/5/2008 8:56:16 PM : Start Price: $6.85 ARSD Score: -48.42

There' s a decent write up on valueinvestorsclub.com that's fairly convincing. The case is that company is pretty much fairly valued, and it has two pieces that aren't being included in it's valuation at all. (There's a small part of trouble with the writer's reasoning in that he ascribes the control premium multiple to be the "fair value" multiple. But still.)

The two missing pieces not included favorably in the valuation are:
1. a big expansion to its existing plant that will about double its capacity.
2. a multi-metal (Cu, Fe, Au, take your pick) mining project in Saudi Arabia. It's a joint venture with some State run Chinese mining thing.

There's also a pretty good analyst from BB&T, profiled in Forbes I think, who makes the case for chemicals generally. So much turns on whether that 4% demand growth figure turns out to be right.

And they just got their NASDAQ listing so if you like me believe that information doesn't transfer throughout the world in a frictionless fashion to the folks with money, then you might find that a bonus.