Sutor Technology Group, Ltd. (SUTR)

Steel is the sector to be in. China is the place to be. Their sales are all to China, which means they'll grow fast, and expanding sales to the U.S. and other countries will be a bonus beginning over the next year or two. Steel is one of the most volatile sectors over the long-term, and this is a chance to buy it at the bottom.

Recommendation of cap member and/or remembers to at least double with in six months or less

A young company with great potential.

** Courtesy of Kunal Desai

As our favorite commies to the east have decided to cut taxes for Chinese Steel companies. this should lead to all sorts of funny business by the local steel companies. Expect some of the little guys to get bought out..some consolidation..and some big gains by the end of the year.

Sutor Technology Group Limited engages in the manufacture and sale of steel products primarily in the People?s Republic of China. It offers hot-dip galvanized steel, prepainted galvanized steel, acid pickled steel, and cold-rolled steel products. The company sells its products to customers who operate primarily in the solar energy, appliances, automobile, construction, infrastructure, medical equipment, and water resource industries. It also exports its products to Europe, the Middle East, South America, the United States, southeast Asia, and Hong Kong. The company is based in Changshu, the People?s Republic of China.

In have this in my real longterm account and expect it to double within 6 months. (In at $3.33)

Sutor is a Chinese steel maker. It is cheaply valued(PEG of less than 10) and has high insider ownership(insiders own about 80%). They are somehow remaining profitable during a very difficult time for the steel industry.

CAPS ALL STAR

Mmm...steel...

See BullishBabo's analysis. A lot of long-term upside potential in an emerging infrastructure market.

From my blog post on 10/1, with a minor edit:

Sutor Technologies is a steel company in India selling galvanized, pickled, and cold-rolled steel. From just the description, I am led to believe that it may not be a fully integrated steel company. A fully integrated company would probably sell hot-rolled steel and slabs as well. The closing price as of 9/30/09 was $3.16. Financials are available starting from the 12 months ended 2007, so I'll only be going back 3 years for the financials. Keep in mind the fiscal year for them ends in June, so the 2009 numbers are TTM as well.

EPS:
2007: $0.59
2008: $0.82
2009: $0.49

Ratios from CAPS:
P/S: 0.33
P/B: 0.78
P/TB: 0.80

After the earnings release on 9/25, the price tanked from 9/24's closing of $3.91 to $3.21 on 9/25. It has stayed depressed, and could fall further if the market tanks. I see the sudden drop as an irrational reaction to the EPS of $0.03 vs. estimates of $0.10. I don't think the company's value dropped 18% overnight just because they missed EPS estimates. It is in the best interest of the value investor to look for these temporary overreactions to missed estimates, in my opinion.

I personally bought some shares at $3.33 on 9/25 when it first tanked, and I will consider buying more in a bit if it stays depressed long enough for me to get more money into the market. A steel company that has managed to make money the last 5 quarters straight is very rare. SUTR also looks attractively valued from a value standpoint, with excellent ratios.

Current assets actually aren't made up mostly of inventory, which is another plus. It does look like there's a chunk of short-term debt or something due from their last quarterly filing, but I'm sure they can handle it.

I didn't research past the financial statements. Further due diligence is recommended, but I'd say this company is definitely worth the look.

Now is the time!

HT TSIF

Incredibly well managed team; manageable debt and when China resumes strong growth SUTR should be a double / triple bagger.
JKS

well, this pitch won't win any prizes, but it's easy points. If you look at my closed picks, I've milked sutr many times. The price just keeps moving so nicely I can open and close positions in caps and rl for points and bucks. This is not investing, this is trading.

Joining the CAPS crowd. I like Sutor Technology Group because this manufacturer of steel finishing products operates in China, is modestly profitable and sells for book value. I also like the $4.23 stock price. I have notices that low priced stocks make the biggest gains when there is good news.

Don't know a whole lot about this Co., but everything I have read seems good. China's economy as well as the Asian economy (and world economy) is only going up, albeit in a rollercoaster ride. Will hold for the long term...2-3 yrs.

I don't know much about their competitors but can see competition cutting into their profits.

it has all the letters of my name-how cool is that for a reason

a good small cap to keep for a while...

China play. Steel will emerge once economy picks up.

I really can't see much more downside from here and with a nice P/E and Earnings, looks like there should be a lot of growth here.

Never know, the quakes could possibly create some new areas to explore.