Word on the Street

Visit Word on the Street

China Precision Steel: Will Dilution Kill the Rally?

Posted on May 20, 2008

China Precision Steel Inc. (CPSL) had a great third quarter as revenue grew 61.3% to $18.7 on a year over year basis, and net income rose to $4.6 million, or $.10 per diluted share. The stock has responded in kind with a meteoric rise of 83.4% from a price of $4.34 right before Friday s earnings release to a high of $8.47 yesterday. The run may not be over yet, but one thing that could potentially crash the party is dilution. Management has on numerous occasions hit the capital markets at an opportune time, with the stock price high and volume at record levels. In November of 2007, the steel...

Original article link


china , earnings , markets , shanghai