China Armco Metals auf Wachstum eingestellt

China Armco Metals Inc (CNAM.A), NYSE's 35th largest conventional electricity company by market capitalisation, traded at its 279-day high of 62.0c. The stock price added 1.21c (or 2.2%) from its last traded date of January 10, 2013 to close at 55.20c. Trading volume was 0.1 times average. 

RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bullish Signals:

Valuation

- Price/Sales of 0.1 versus sector average of 1.4 and market average of 1.2.

- The Price to Book of 0.24 is lower than the average of 1.6 for the Conventional Electricity sector and 3.3 for the Total NYSE Market. We estimate the shares are trading at a current year Price to Book of 0.1 and a forward year Price to Book of 0.1.

- The company is cash rich with Cash to Market Capitalisation at 10.4%

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 1% of stock by value of Q Ratio.

Bearish Signals:

Performance

- Total Liabilities/ EBITDA of 36.4 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.


Description  Value  Rank In Market  Price to Sales  0.1  In Top 2%  Price to Book Value  0.24  In Top 2%  EBITDA Margin %  1.4  In Bottom 1%

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

- Compared with the NYSE U.S. 100 Index which rose 0.6% for the week, this represented a relative price increase of 1.6% for the week.

% Discount to high: it is at a discount of 43.7% to the 12-month high of 98.0c (traded on 21 Feb, 2012).

- The present value of US$1,000 (PV$1000) invested one year ago is US$1,577 [vs US$1,153 for the NYSE U.S. 100 Index], for a capital gain of US$577. The total return to shareholders for 1 year is 57.7%.


PV$1000  1-week  1-year  CNAM.A  US$1,022  US$1,577


Description  Value  Rank In Market  MCap  US$10.1 million  In Bottom 1%  Stochastic  51.3  Bullish  Price Change %  2.2  In Top 7%  Volatility %  12.3  In Bottom 1%

UPTREND

- The current short volume is 0.4 times its own historical average of 0.1%. It crashed 62.6% from the previous day, crashed 58.3% from a week ago and crashed 58.0% from a month ago, a significant bullish indicator.

- Rises to Falls: In the past month the number of rises outnumbered falls 8:4 or 2:1.

AGGREGATE VOLUMES, PRICES AND TURNOVER PERIOD [Volume Index or VI in brackets; 1 is average]

AMEX:CNAM.A 225,469 [VI of 2.4] volume 99.1% of aggregate. Price: 55.20c.

BATS:CNAM.BATS 2,100 volume 0.9% of aggregate.

Aggregate volume: there were 227,569 shares worth US$124,459 traded. The aggregate volume was 2.4 times average trading of 94,000 shares.

COMPANY ANNOUNCEMENTS

The last 5 company announcements are:

January 07: China Armco Metals Receives a Purchase Order of 60,000 Tons of Scrap Steel for 2013 from one of largest steel companies in China

[News Story] SAN MATEO, Calif., Jan. 7, 2013 China Armco Metals, Inc. (NYSE MKT:CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced that Armco (Lianyungang) Renewable Metals, Inc., the Company's wholly owned subsidiary, has signed a sales agreement with Jiangsu Lihuai Lron & Steel, Co., Ltd.

January 02: China Armco Metals Obtained import license of various scrap metals from PRC government

[News Story] SAN MATEO, Calif., Jan. 2, 2013 -- China Armco Metals, Inc. (NYSE MKT:CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced that Armco ( Lianyungang) Renewable Metals, Inc., the Company's wholly owned subsidiary, has obtained the qualification from Chinese regulators to import and process various scrap metals, including waste metal appliances, scrap wires/cables and waste electric motors, from overseas to China directly.The qualification was approved and authorized by the Ministry of Environmental Protection of the PRC after its strict examination and assessment. 

http://www.waste-management-world.com/news/2013/...n-high-volume.html

17-Jan-2013

Entry into a Material Definitive Agreement, Financial Statements and Exh


Item 1.01 Entry into a Material Definitive Agreement.

Amendment of Subscription Agreement and Common Stock Purchase Warrant

On January 11, 2013 (the "Closing Date"), China Armco Metals, Inc. (the "Company") entered into a second amendment (the "Second Amendment") to that certain Subscription Agreement and Common Stock Purchase Warrant (the "Original Agreements") dated July 2008, as amended by certain Amendment No. 1 to the Original Agreements dated May 2010 ("First Amendment"). Pursuant to the Original Agreements, the Company offered (the "Offering") and issued securities to 82 investors for an aggregate purchase price of $6,896,229.

Pursuant to the First Amendment 34 investors (the "First Amendment Investors") waived certain rights under, Section 6.6 Adjustment for Certain Transactions, of the Common Stock Purchase Warrant, and Section 12(b) Most Favored Nation Provision, of the Subscription Agreement, in exchange for certain covenants of the Company with respect to restrictions on future financings (the "Future "Financing Restrictions").

This Second Amendment amended (i) the First Amendment to eliminate the Future Financing Restrictions, (ii) the Warrant to reinstate Section 6.6, Adjustment for Certain Transaction, and (iii) the Subscription Agreement to reinstate
Section 12(b), Most Favored Nation Provision.

The Second Amendment provides that it shall only be effective upon execution of this Second Amendment by each of the investors that executed the First Amendment. At January 8, 2013, three days prior to the Closing Date, after an exhaustive search and numerous attempts to reach all holders that signed the first amendment, all the First Amendment Investors that executed the First Amendment signed the Second Amendment except two investors from whom we have been unable to reach or receive responses. These two investors invested a total amount of $400,000. On January 8, 2013, we transmitted emails to all of the First Amendment Investors to notify them of the foregoing circumstance and conveyed to them the Company's intent to declare the Second Amendment effective despite the absence of executions by the two remaining investors. A two-day objection period was afforded to all the First Amendment Investors (including the two unsigned investors) in such emails. As of January 10, 2013, we have received no indication from any of the First Amendment Investors that object to effectiveness of the Second Amendment, and no indications from the two unsigned investors that they will not sign the Second Amendment. Accordingly, on the Closing Date we declared the Second Amendment effective with respect to all the signed investors.

The foregoing description of the terms of the Second Amendment is qualified in its entirety by reference to the provisions of Form of Amendment No.2 to Subscription Agreement and Common Stock Purchase Warrant filed as Exhibit 10.1 to this Current Report on Form 8-K (this "Report"), which is incorporated by reference herein.



Item 9.01 Financial Statements and Exhibits.

http://biz.yahoo.com/e/130117/cnam8-k.html

China Armco Metals Inc (CNAM.A), NYSE's 41st largest conventional electricity company by market capitalisation, extended its slide Thursday, shedding an additional 7.29c (or 13.1%) to close at 48.51c. The shares have crashed 8.47c (or 14.9%) over the past two trading days. Compared with the NYSE U.S. 100 Index, which rose 23.8 points (or 0.4%) on the day, this was a relative price change of -13.4%.

RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bullish Signals:

Valuation

- Price/Sales of 0.1 versus sector average of 1.4 and market average of 1.2.

- The Price to Book of 0.21 is lower than the average of 1.6 for the Conventional Electricity sector and 3.3 for the Total NYSE Market. We estimate the shares are trading at a current year Price to Book of 0.1 and a forward year Price to Book of 0.1.

- The company is cash rich with Cash to Market Capitalisation at 11.8%

Bearish Signals:

Performance

- Total Liabilities/ EBITDA of 36.4 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.


Description  Value  Rank In Market  Price to Sales  0.1  In Top 1%  Price to Book Value  0.21  In Top 2%  EBITDA Margin %  1.4  In Bottom 1%

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

Volume: there were 271,134 shares worth US$131,527 traded. Trading volume was 0.04 times average.

% Premium to low: it is at a premium of 28.5% to the 12-month low of 37.75c (traded on 17 Jan, 2012).

- The present value of US$1,000 (PV$1000) invested one year ago is US$1,294 [vs US$1,146 for the NYSE U.S. 100 Index], for a capital gain of US$294. The total return to shareholders for 1 year is 29.4%.


PV$1000  1-week  1-year  CNAM.A  US$898  US$1,294

Oversold/Bullish/Support Signals

- The stock is oversold according to the Williams % R indicator of -96.4, suggesting the price is close to its 14-day low.


Description  Value  Rank In Market  MCap  US$8.8 million  In Bottom 1%  Williams %R  -96.4  Bullish  Price Change %  -13.1  In Bottom 1%  Volatility %  18.3  In Bottom 1%

DOWNTREND

- The stock dropped 13.1% on high volatility today.

- The stock dropped to a ten-month low.

 

http://www.waste-management-world.com/news/2013/...4-9-in-2-days.html

China Armco Metals Inc (CNAM.A), NYSE's 31st largest conventional electricity company by market capitalisation, climbed 2.24c (or 4.6%) to close at 50.75c, ending a two-day streak of losses. Compared with the NYSE U.S. 100 Index, which rose 13.3 points (or 0.2%) on the day, this was a relative price change of 4.4%. Trading volume was 0.04 times average. 

.............

http://www.waste-management-world.com/news/2013/...n-firm-volume.html

China Armco Metals held annual meeting of 2012 in Zhengzhou, Henan province on Jan.18^th, 2013 and Jan.19^th, 2013. CEO of all the subsidiaries and department managers attended the meeting.

Subsidiaries made summary separately for the  operation of 2012 and the operation manager disclosed the results of  satisfaction survey and internal audit, from which we get the ideas from  the employees and what are we yet to do in the coming new year.

“The winter of 2012 is almost the toughest one for  Armco ever since its establishment, however, challenges and  opportunities always coexist; we finally survive with strategic deployment and  consistent joint effect. Renewable resources business turns out to be  profitable from the perspective of a whole year, which used to be a  deficit; furthermore, corresponding sales in 2013 are expected to win a  substantial growth, according to the set schedule and arrangement. In  addition, Armco Commodity Financing business is acting as a new growth  point and becoming the main source of profits. “

http://www.armcometals.com/News/...0of%202012%20held%20in%20Zhengzhou

An official from a large Chinese steel scrap processing enterprise has stated that they have received information that the Chinese government will reintroduce a VAT refund policy for domestic steel scrap processing enterprises for 2013, with a VAT refund rate of 50 percent – as reported by Chinese media sources.

http://www.armcometals.com/News/...20for%20scrap%20processing%20firms

29-Jan-2013

Entry into a Material Definitive Agreement, Financial Statements and Exh


Item 1.01 Entry into a Material Definitive Agreement.

On January 28, 2013 (the "Closing Date"), China Armco Metals, Inc. (the "Company") completed a public offering of an aggregate of $1.60 million shares of the Company's common stock in a registered direct public offering (the "Offering"). The shares offered in this Offering were sold by the Company directly to the investors. No underwriter or agents was involved in connection with this Offering to solicit offers to purchase the shares.

On the Closing Date, the Company entered into Subscription Agreements (the "Subscription Agreements") with certain investors (the "Investors") in connection with the Offering, pursuant to which the Company agreed to sell an aggregate of 3,242,712 shares of its common stock at a purchase price of $0.50 per share to the Investors for aggregate gross proceeds, before deducting the estimated offering expenses payable by the Company, of approximately $1,621,356.

The purchase and issuance of the securities in the Registered Direct Offering are completed on January 28, 2013.

The Offering was effected as a takedown off the Company's shelf registration statement on Form S-3, as amended (File No. 333-184354), which became effective on December 14, 2012 (the "Registration Statement"), pursuant to a prospectus supplement filed with the Securities and Exchange Commission (the "SEC") on January 28, 2013.

The net proceeds to the Company from the Offering, after deducting the estimated offering expenses are approximately $1.60 million. After the closing of the Offering, the Company has 23,484,288 shares of common stock outstanding.

A copy of the opinion of Anslow & Jaclin LLP relating to the legality of the issuance and sale of the shares in the Offering is attached as Exhibit 5.1 hereto. The foregoing summaries of the terms of the Subscription Agreements are subject to, and qualified in their entirety by, such document attached hereto as Exhibits 10, which is incorporated herein by reference. The form of the Subscription Agreement has been filed pursuant to rules of the Securities and Exchange Commission to provide interested persons with information regarding their terms, but is not intended to provide any other factual information about the Company. The representations, warranties and covenants contained in the form of the Subscription Agreement were made only for purposes of the Offering as of specific dates indicated therein, were solely for the benefit of the parties to these agreements, and may be subject to limitations agreed upon by the parties, including being qualified by confidential disclosures exchanged between the parties in connection with the execution of these agreements.

http://biz.yahoo.com/e/130129/cnam8-k.html

 RNewswire  

Published: 06 February 2013 09:01 AM

SAN MATEO, Calif., Feb. 6, 2013 /PRNewswire/ -- China Armco Metals,  Inc. ("China Armco" or the "Company"), a distributor of imported metal  ore and metal recycler with a new state-of-the-art scrap metal recycling  facility in China, today announced that Armco (Lianyungang) Renewable  Metals, Inc. ("Armco Lianyungang"), the Company's wholly owned  subsidiary, has been certified as a Demonstration Base for Steel Scrap  Processing and Distribution by the China Steel Scrap Industrial  Associations, and therefore could benefit from a 50% value added tax  (VAT) refund in 2013 according to the upcoming policy of the Chinese  government.

Armco Lianyungang was selected among steel scrap companies in China  upon assessment in respect of scale, equipment conditions, quality and  environmental management systems and credit rating etc., pursuant to  regulations promulgated by the Ministry of Industry and Information  Technology of China in October 2012.

In addition, the Company has so far received orders amounted to  approximately 360,000 metric tons of scrap steel for the year of 2013,  which accounts for 60% of the Company's annual sales goal for 2013.

"We are confident that we will benefit from the certification as well  as the possible tax refund. The tax refund when effective could lower  our costs and increase our profits by a large margin, which may ease our  capital stress and improve our competitive edge. Also, with the  certification we are allowed to act as procurement agency for other  uncertified companies, which could boost our domestic purchases and  total sales," said Mr. Kexuan Yao, Chairman and CEO of China Armco. "In  addition, we had a very good start for 2013 compared to previous years.  So far the orders we have received for 2013 are significantly more than  the same period of previous years. We believe that we will have a  significant increase in sales in 2013."

http://www.providencejournal.com/business/...receive-tax-benefits.ece

aus dem Yahoo Bord......................

http://finance.yahoo.com/mbview/threadview/?&bn=f4234238-6396-3a21-b2bb-75f5095dc6fb&tid=1361122584975-52b34512-4795-4058-abf3-7018c78a04fb&tls=la%2Cd%2C1%2C3

CNAM's goal for 2013 is to process 500,000 tons of scrap steel. They  alredy ahve order for 360,000 tons at the begining of 2013. I think  there is little question they can meet that goal for 2013, if no more  delays pop up.

Additionally they should have the capacity by end of year for up to 800,000- 1,000,000 tons of scrap steel.

Checking the scrap metal price market in china, from bids on alibaba and  other price tracking places. prices are definitely increasing coming  from their lows in sep 2012.

 Iron and steel scrap pricing ranges form 450-200 dollars per ton based on tehe quality and composition.

I'm guessing CNAM's scrap is towards the low end, I will just ignore  their other alloys since steel scrap is the largest one, even though the  other alloys are worth a lot more.

Processing 500,000 for 2013 which should be the minimum.  Should put  thier revenues form scrap alon into teh 125 million range. That is above  thier 2012 of  roughly ~80 million. Since the prices have rising that  wil also get them out of thier margin slump, which in 2012 was very low.  They also stated in last quarterly taht amrgins are risinign  dramatically. I estimate margins might approach 6-7% before  administrative costs. Coming off a ~4-5% area. The margin is going to  reverse here which is key. The margin is reducing because of rising  prices, no power outages, and orders in place and read to go. Ie  backlog, so no downtime which costs lots and eats into margins.  Something tehy had problems with prior.

The 6% margins on 125 milion in scrap revenue, which is a conservitive  estimate. Gives them 7.2 million dollars profit before tax's which they  ahve a break on.  Keep in mind this is low ballpark.. high ballpark  could see almsot double that nubmer in profit, 12 million. But let's try  to lowball it becaue we know thier track record of not impressing.

Administrative costs will eat up roughly 6 milion for the year, leaving  them with alredy about 1.2 million in profit (low ballpark). BUT! Those  administrative costs ALSO cover thier ore trading business with which  they now have a fiancing deal. And expect a pick up this year.  They  also forecast margins in ore trading are set to rebound from 3.5% back  higher. As iron ore prices have also risin dramatically off thier sept  2012 lows. With adminstrative costs alredy fully absorbed by the  recyling side ore trading should bring in at least 24 million with  margins around 5-8%. Giving around ~1.56 million in profit.

So this low ball park estimate gives them a profit of 1.56 from ore  trading and 1.26 million form scrap steel. For a ttal of ~2.8 million  for the year.

 A more high ball estimate with either higher margins or more  thoughput.. Plus consdiering teh other high cost scrap that I ignored  for simplicity's sake could make taht up to  3 million profit form  recycling and 2 million for ore trading. 5 million profit for the year

So between 2.8 – 5 million profit before intrest expense  is my guess  for 2013. And that should improve greatly for 2014. Intrest expense will  probably cut into that nubmer by 1.5-2 million. However, the intrest  expense will be completly offset by  the recorded increases of bvalue in  their investment in apollo minerals. Also they should gain another 2-3  million in added value from thier inventory appricaition as prices are  rising and tehy ahve alot of inventory that was heavily devalued at last  report.

This translates into a total pretax progit in the range of  3.8-7  million for 2013 after all expenses are accouttned for. And efficency  and margins will continue to improve throught the rear as operations  come online and downtime is reduced. Especially in 2014.

The eps per share here for 2013 should be betwen .19 and .31 depending  on how many new shares are issued. And could be slightly higher than tht  for 2014.. although 2014 probably records less from inventory  apprciation, and asset papricaiation, but potentially much more from  thier core business and increasing margins. Less

China Armco Metals Inc (AMEX:CNAM), NYSE's 41st largest conventional electricity company by market capitalisation, dropped 1.99c (or 4.8%) to close at 39.51c. In the past week the shares have slid 5.5%, the biggest trailing week fall since January 23.

RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS

Bearish Signals:

Performance

- Total Liabilities/ EBITDA of 36.4 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.


Description  Value  Rank In Market  EBITDA Margin %  1.4  In Bottom 1%

RELATIVE VALUATION INDICATORS [RVI] TECHNICALS

Volume: there were 93,690 shares worth US$37,017 traded. The volume was 2.4 times the average trading of 38,325 shares.

% Premium to low: it is at a premium of 9.8% to the 12-month low of 36.0c (traded on 04 Feb, 2013).

- The present value of US$1,000 (PV$1000) invested one year ago is US$617 [vs US$1,148 for the NYSE U.S. 100 Index], for a capital loss of US$383. The total return to shareholders for 1 year is -38.3%.


PV$1000  1-week  1-month  1-year  CNAM.AMEX  US$945  US$779  US$617

Oversold/Bullish/Support Signals

- The Relative Strength Index (RSI) of 29.6 has breached the oversold line of 30, suggesting the price decrease in the last 14 days is unusually high.


Description  Value  Rank In Market  MCap  US$7.2 million  In Bottom 1%  RSI  29.6  Bullish  Price Change %  -4.8  In Bottom 7%  Price/MAP50  0.63  In Bottom 6%  Volatility %  7.6  In Bottom 4%

SIGNIFICANT DOWNTREND

- The stock dropped 4.8% on high volatility today.

- The current short volume is 1.1 times its own historical average of 0.1%. It rose 1.4% from the previous day, soared 2,715.0% from a week ago and soared 3,418.8% from a month ago, a significant bearish indicator.

- Falls to Rises: In the past month the number of falls outnumbered rises 10:6 or 1.7:1.

- In the last three months the stock has hit a new 52-week low once.

http://www.waste-management-world.com/news/2013/...s-for-1-month.html

Armco (Lianyungang) holds ceremony for obtaining qualification of “scrap steel processing and distribution center” demonstration base


Armco (Lianyungang) Renewable Metals, Inc is holding ceremony for obtaining qualification of “scrap steel processing and distribution center “demonstration base on Mar.4th, 2013, at Banqiao industrial park, which is in Lianyungang city, Jiangsu Province.

Honorary President Mr. Zhenwu Wang, Standing committee and Secretary General Mr. Shubin Li and Vice Executive Secretary Mr. Shuzhou Liu from China Association of Metal Scrap Utilization (CAMU) is attending the ceremony, together with local government representatives and industry colleagues. Besides, communication is arranged after the ceremony between attendees for better collaboration and larger profit margin.

Qualification of “scrap steel processing and distribution center “demonstration base is awarded by CAMU after accessed Armco (Lianyungang) according to a series of entry criteria, including but not limited to the scale, equipments, quality/environmental management system, with the purpose of utilizing the scrap steel to the max.

The policy is carrying out to serve the iron and steel industry by promoting the convergence of the suppliers and the demand side as well as establishing long-term strategic alliance and stabilizing industry chain, not only that, is significant for reducing the waste of resources and environmental pollution due to more efficient processing by the chosen companies.

It’s reported the VAT (Valve Added Tax) policy is carrying out, by which the steel scrap enterprises obtained the qualification mentioned above could enjoy 50% refund of the VAT.

Armco (Lianyungang) Renewable Metals, Inc passed both of the assessment and review from CAMU and Ministry of Environmental Protection Association of China in the late Dec.2012. The qualification plays a positive role in promoting the development of the enterprise.

http://www.armcometals.com/News/...on%20center%20demonstration%20base

Vol / Avg.     381,372.00/145,837.00      +0.040 (12.12%) auf 0,37 USD

nun glaube ich, daß der "große Käufer" langsam eingesammelt hat und fertig sein sollte - Ende März kommen die Zahlen - Alle warten, daß dieser Penny auf mind. 1 USD dieses Jahr ansteigt.................Die Zeit ist reif..............für einen Spurt nach oben.............but you never mind.

Ab jetzt glaube ich wieder an die Bude................

Das Volumen ist Volume:    728,417 Shares gestern gewesen.  An diese hohe Summe kann ich mich nicht erinnern jemals erreicht zu haben. 

China Armco Metals: Corporate News Archive

Armco’s cooperation with Mitsui

Mr. Ethan Guo, Manager of Mineral & Metal  Resources Division from Mitsui & Co. (Shanghai) Ltd. and Yuuki  Maran, Manager of Business Div. & Ferrous Raw Materials Unit from  Mitsui Bussan Metals Co., Ltd visited Armco Shanghai yesterday for  potential steel scrap cooperation.

As there exists differences as well as respective  advantages between Chinese and Japanese markets, the two parties are  seeking exchange for mutual interests. CNAM possess quite advanced processing s and comparatively lower labor cost, while Mitsui Bussan Metals Co., Ltd owns abundant fund and  complete industry .The cooperation could capital pressure of CNAM and make up the capacity shortage due to the lack of raw materials.

Mitsui Group is the biggest  company (Sogo  Shosha) in the world. The proportion of Japan in China imports has been  about 20%, far more than the United States and Europe. Besides,  according to the Japanese government announcement and media survey  regarding overseas investment, China is the preferred choice for  investments.

After discussions more than once, CNAM is looking forward to establishing a stable supply and demand between the two parties.

http://www.armcometals.com/News/Armcos%20cooperation%20with%20Mitsui

Mr. Kexuan Yao, Chairman and CEO of China Armco, Mr.Yuanfeng Tang, Manager of Resource Development and Trading Department from Baosteel, meet together with Mr. Guoqiang Wei, Vice-secretary of the Lianyungang Municipal Committee on Mar.4th.2013.

It is significant that the government, state-owned enterprise and private company work together for mutual interests. Interactions among the three parties draw a profound impact on the development of the industry in China. However, the specific implementation needs further confirmation.

If investment, consumption and export act as the "troika" to boost GDP growth, policy assist, fund support and standardized operation play a role the same as “troika" in steel scrap industry. Armco are seeking ways to maximize its advantages by flexible mechanism.

http://www.armcometals.com/News/Armcos%20cooperation%20with%20Baosteel

aus dem China Armco Yahoo Bord............

http://finance.yahoo.com/mbview/threadview/...&tls=la%2Cd%2C0%2C3

China Steel posts profit for January, February


Taipei, March 16 (CNA) China Steel Corp., Taiwan's largest steel maker, said Saturday that it recorded a year-on-year profit in January and February, citing a recovery in the domestic economy...

China Steel said the market conditions for 2013 are expected to improve from last year as a global economic rebound has led to an increase in demand.

In late February, the steel maker decided to raise domestic wholesale product prices for its April and May contracts by 3.81 percent from March, citing restocking from downstream steel firms as the reason.

Speaking about the price hikes, China Steel said business and consumer confidence has recovered globally to some extent since the European Central Bank and the United States Federal Reserve implemented liquidity easing measures to stimulate the economy.

In China, the world's second largest economy, exports and industrial production have shown signs of rebounding, which has further boosted demand. China Steel said.

Under such favorable circumstances, the steel maker said, its orders for the first quarter of this year rose 10 percent from the previous quarter and are likely to increase by a quarterly 3 percent in the April-June period.

The company said it is optimistic about an uptrend in domestic wholesale product prices for June deliveries.

Following the power transition in Beijing, the Chinese government is expected to introduce more economic stimulus measures by raising investments...

(good news for CNAM, when steel makers are profiting usually the scrap metal supply chain profits also with better margin room in price negotiations

http://www.providencejournal.com/business/press-releases/20130325-china-armco-metals-to-host-fourth-quarter-year-end-2012-earnings-conference-call-on-monday-april-1-2013-at-500-p.m.-edt.ece

viel Glück und frohe Ostern.................... 

ab jetzt geht es aufwärts.........................

http://www.stockhouse.com/news/usreleasesdetail.aspx?n=8778343

Economic & Steel Market Outlook 2013-2014

Source: The European Steel Association

Despite several economic indicators edging up since November last year, EUROFER’s Q1-2013 Economic & Steel Market Outlook signals that for the time being the EU steel market looks set to remain stuck in reverse gear.

Since late 2012, several economic indicators such as the EU economic sentiment indicator and PMI output indices are improving. Also the first cautious signs could be observed that reforms in the most troubled countries are beginning to work.

The ECB announcing the Outright Monetary Transaction programme and further progress on the restructuring of the Spanish banking sector helped easing financial market tensions. This was supportive to private funds from abroad flowing back into the peripheral Eurozone countries and a strengthening of the Euro.

EUROFER Director-General Gordon Moffat: “We do expect a more supportive economic environment towards the end of the year. But it will take most of 2013 before our customers in industry and the steel distribution chain will notice any improvement in business conditions. Confidence may be rising, but only from a depressed level. Financing and credit are still tight. Companies remain highly risk aversive. Steel market conditions will remain difficult for the time being”.

Activity in the steel using sectors is expected to register a further decline in 2013 due to the continuation of difficult operating conditions in the EU, particularly in construction and automotive. A mild rebound is on the cards for 2014, in line with the expected economic recovery in the EU.

As far as the EU steel market is concerned, the late 2012 rise in bookings confirms the likelihood of a “technical restocking” scenario in Q1-2013. However, the market will continue to lack any positive demand impulses from end-users until the final quarter of the year. Imports are seen remaining at a reduced level, but will not drop any further. Apparent steel consumption will fall again slightly in 2013, before improving in 2014.

Gordon Moffat: “The EU steel market in 2013 looks set to remain fragile. There is continued risk of supply and demand distortions. The stronger Euro could attract more imports, even though real steel consumption is to remain subdued”.

For the full report, click on the link:

/includes/upload/files/Market%20Report-2013-January.pdf


Source: http://eurofer.org/index.php/eng/News-Media/...utlook-2013-2014 

http://www.armcometals.com/News/...teel%20Market%20Outlook%2020132014

http://finance.yahoo.com/news/...mco-metals-host-first-113000096.html

und am 20. Mai ist der Conference call

http://www.marketwire.com/press-release/...-nyse-mkt-cnam-1791580.htm

May 15, 2013 18:00 ET
China Armco Metals Announces First Quarter 2013 Financial Results



SAN MATEO, CA--(Marketwired - May 15, 2013) - China Armco Metals, Inc. (NYSE MKT: CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler, today announced its financial results for the first quarter of 2013.

SUMMARY FINANCIALS
First quarter 2013 Results
Q1 2013 Q1 2012 CHANGE
Revenue $14.3 million $49.3 million  -71%
Gross Profit $0.64 million $1.46 million  -56%
Net Income (Loss) ($1.09 million) ($1.66 million)   n/a
EPS (Fully Diluted)  ($0. 05)  ($0.10)   n/a



First Quarter of 2013 Financial Results

For the quarter ended March 31, 2013, net revenue decreased to $14.3 million compared to $49.3 million for the same period of 2012. The decline in sales in the quarter resulted from the significant decrease of $35.9 million, or 87%, in our trading business sales which the Company proactively reacted to the metal ore market change and slowed down our trading activities to manage risks. China Armco sold 32,286 tons various metal ores at an average price of $166 per ton through its trading business compared to sales of a total of 324,849 tons various ores at an average price of $127 per ton in the first quarter of 2012. China Armco's metal recycling business contributed $9.0 million in sales during the first three months of 2013, increased 12% compared to $8.0 million in sales in same period of 2012.

Gross profit for the first quarter of 2013 decreased 56% to $0.64 million, compared to $1.46 million in the first quarter of 2012 mainly due to the decline in trading business. Gross profits for the trading and metal recycling business were $0.002 million and $0.63 million respectively. Gross margin for the trading business declined to 0.3% and recycling businesses increased to 7%, compared to 3% for trading business and 2% for recycling business in the first quarter of 2012 respectively.

Operating expenses remained at approximately $1.7 million for the first quarter of 2013 compared to same period of 2012. As a percentage of sales, operating expenses were 11.8% and 3.4% in the first quarter of 2013 and 2012, respectively, the increase primarily due to the significant decrease in our trading business sales and a one-time leasing fee adjustment in the first quarter of 2013.

Operating loss for the first quarter of 2013 was $1.05 million compared to an operating loss of $0.23 million in the first quarter of 2012.

Net loss for the first quarter of 2013 was $1.09 million, or $0.05 loss per diluted share, compared to net loss $1.66 million or $0.10 per share for the same period last year. The weighted average diluted shares outstanding increased from 16.7 million in the first quarter of 2012 to 23.3 million in the first quarter of 2013, due to equity issuance for capital raise, payment and compensation and converted debt after the end of first quarter of 2012 .

Mr. Kexuan Yao, Chairman and CEO of China Armco stated, "Although the China steel industry had a turnaround from losses to profits for the first quarter, the total profit posted a downward trend with record-high output over the first three months of 2013 suggesting that the sector remained weak due to fiercer competition amid industrial overcapacity. Our trading business was adversely affected by the market resulting in sharp declines on net revenues and gross margins during the quarter. However, our revenue and gross margin in our recycling business continued to grow steady; the quantities of scrap metals processed and sold from our recycling facility in the first quarter continued to increase compared to the first quarter of 2012. We believe our solid and sound foundation in the industry, our strong relationship with our customers and suppliers around the world, and the strategy we have developed will enable us to overcome various challenges and fully leverage our operating model to generate incremental revenue and profitability, especially, recently in the second quarter we have started to increase our production of recycled nonferrous metal scraps which is expected to further improve our recycling business profitability."

Financial Conditions

As of March 31, 2013, the Company had $1.33 million in cash and cash equivalents, compared to $1.37 million at the end of 2012. Working capital was $1.4 million and a current ratio of 1.03:1 on March 31, 2013 compared to $0.3 million and 1.01:1 on December 31, 2012. Total accounts receivable decreased $7.6 million to $8.1 million at the end of the first quarter of 2013 compared to $15.7 million at the year end of 2012 primarily due to the payment we received in the first quarter for our scrap metal sales made during 2012. Inventories increased $5.4 million at March 31, 2013 from December 31, 2012, primarily due to the inventories of $3.57 million of Chrome ore and the increase of scrap metal inventories for increased production. We have signed sales contracts and received deposits for the sales order of the Chrome ore inventories which are expected to be delivered in the second quarter. As of March 31, 2013, shareholders' equity was $42 million, essentially flat from December 31, 2012.

The Company had a $3.3 million net cash inflow from operations in the first quarter of 2013 compared to a net cash outflow of $26.1 million in the same period last year. During the first quarter of 2013, China Armco successfully sold (delivered) or locked sales contracts (to be delivered) for all of our metal ores inventories and scrap metals recycled in the quarter to control market risks and speed up capital turnover. The Company has bank facilities, which provide for cash borrowings or the issuance of commercial letters of credit required in its metal ore trading business, aggregating $57 million. Approximately $37 million was available under these facilities at March 31, 2013.

Business Updates

Our trading business decreased to approximately $5.4 million in net revenues during the first quarter of 2013 compared to $41.3 million in the same period in 2012. In the first quarter of 2013, to manage market risks, we significantly decreased new purchase of metal ore and locked sales orders for our ore inventories of $3.57 million to be delivered in second quarter. We continued to firm our business relationship with worldwide suppliers and stabilize our supply capacity. We believe our effort to build our supply capacity will benefit us in the long term and strengthen our market position in the industry in the PRC. Moreover, we continued to develop our new "Commodity Financing" model and expect to make some major progress in this year which we have obtained support from several large banks.

During the first quarter of 2013, despite the Chinese New Year holiday and the weak demand and market, both production and revenues for our recycling business continued to increase compared to the same period of last year. The scrap metals recycled at our recycling facility increased by 75% to 43,795 MT compared to 25,071 MT in the same period of last year. Our scrap metal business sold approximately 23,001 MT of scrap metals, generating approximately $9.0 million of revenue. By comparison, for the first quarter of 2012, our scrap metal business sold approximately 16,753 MT of scrap metals, generating approximately $8.0 million of revenue. The gross profit margin for our recycling business also increased significantly to 7% for the first quarter in 2013 compared to 2% for same period of 2012 due to the improvement of our recycling business operation. Through the past two years' operation, we have achieved many accomplishments in fundamental aspects of our recycling business, such as optimizing production process, improving cost control and management, developing and streamlining supply chain, establishment of long term strategic partnership with key clients, obtaining various qualifications and licenses, and building our brand in the industry. In addition, as an effort to improve our operation and profitability of the recycling business, we strived to obtain a series of qualifications from the Chinese government. Recently in the second quarter of 2013 we have increased our production of recycled nonferrous metal scraps which is expected to further improve our recycling business profitability. We expect to continue to expend resources to build and firm our customer/business partner bases and supply chain for our recycling business, and recent developments include negotiations on businesses cooperation with large state-owned China steel mills and overseas suppliers.

Conference Call

The Company will conduct a conference call at 5:00 p.m. ET on Monday, May 20, 2013. To attend the call, please use the dial-in information below. When prompted, ask for the "China Armco Metals call" and/or be prepared to provide the conference ID.
Conference Call
Date: Monday, May 20, 2013
Time: 5:00 p.m. Eastern Time, US
Conference Line Dial-In (U.S.): 1-877-407-9210
International Dial-In: 1-201-689-8049
Conference ID# 414423: 2013 1st Quarter Financial Results Call
Webcast link: http://www.investorcalendar.com/IC/CEPage.asp?ID=170982