‘Dropping, dropping, dropping’. Yes, you have got it right. This is an iHub post and it refers to China Sun Group High Tech Co. (OTC:CSGH).
Since the latter appears to have fallen idle for the last six weeks or so, it is no wonder that its stock has been doing nothing but falling into the void. Slowly, but surely. The trend continued yesterday as well. By the end of the session, CSGH stock lost 4.2% to close at a 52-week low at $0.50 per share. Not exciting for a company that used to trade above the $1 level not long ago.
As far as the turnover is concerned, nothing spectacular happened either. Some 53 thousand shares of CSGH stock changed hands, considerably lower than the daily average trading volume, as well as nowhere near the highest scores from the recent past.
Since CSGH does not seem to be among the promoters’ favourite stock picks, it only relies on impressive news to keep the corporate flame alive on the stock market. Unfortunately, the PR well appears to have dried out as the last corporate update surfaced in early-April. Back then, the company announced it had played host to a 27-member Danish delegation exclusively consisting of executives. The reason for their trip to China has been designated as ‘seeking cooperative business opportunities’. So far, so good. Yet, only heaven knows what will come out of the meeting as it is way too early to talk about any firm commitments whatsoever.
China Sun Group High Tech Co. specializes in manufacturing anode materials designed for use in rechargeable Lithium-ion batteries and aims at becoming a premier supplier in China. The company is also a diligent SEC filer. Last month, it published a brand-new 10-Q report covering the quarter ended Feb. 28, 2011. The document, which has yet to undergo an audit, revealed:
- $25.4 million in cash and a gigantic working capital surplus of $28 million;
- revenue of $13.4 million, up 24% as compared to the same quarter in 2010;
- net income in excess of $2.6 million, marking a 20% improvement over the comparable quarter in 2010.
In case the numbers mentioned above turn out to reflect the pure truth once a full-blown audit has been published, Danish investors will rekindle their interest in the China-based enterprise. In the meantime, however, CSGH seems unable to buck the negative trend of its stock.
