China Sun Group High-Tech (CSGH) stocks soar on Q3 results

Posted on: April 14th, 2011
Written by:

China Sun Group High-Tech Co. (OTCBB: CSGH) shares leaped 18.6 percent on today, after the Dalian, China-based vertically-integrated supplier of anode materials for rechargeable Lithium–ion batteries announced favorable third-quarter financial results. Share prices traded 11 cents higher to 70 cents soon before the closing bell Thursday, with volume topping 240,000. The price is still a far cry from the 52-week high of $1.73, set on April 14, 2010.

China Sun Group reported net income of $2.66 million, or 21 percent better than the $2.2 million for the same period of 2010. Net revenues for the quarter ending February 28 were $13.4 million, or 24 percent ($2.55 million) better than the $10.8 million reported in the third quarter of fiscal 2010.

China Sun Chief Executive Officer, Mr. Guosheng Fu, commented, “Our financial results continue to be positively driven by the increasing demand for our products. China Sun Group’s sales and earnings continue to benefit from the increasing demand for our new higher margin product, lithium iron phosphate and the continued surge in demand for lithium batteries.”

As indicated, China Sun Group High-Tech Co. produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd, the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People’s Republic of China.

no comments

About Penny Stocks

The term "penny stocks," also known as micro-cap equities, micro caps, small caps, pink sheets, refers to shares in a company that trades for less than $5.00. Most penny stocks trade on the OTCBB market and the pink sheet electronic quotation service. Penny Stocks can be very volatile and can see gains as much as 500% in a day. Volatility in penny stocks is also dangerous because penny stocks can come down as quickly as they go up. If you trade penny stocks based on stock picks, make sure to always do your due diligence on the companies you're considering, use stop loss orders, and book your profits when you are in a position to do so.