SOURCE: Stock Market Alerts

November 24, 2009 09:35 ET

Breaking News: China Armco Metals - November 24, 2009

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Stock Market Alerts LLC.

MIAMI, FL--(Marketwire - November 24, 2009) - Stock Market Alerts' performance stock list includes: China Armco Metals, Inc. (OTCBB: CNAM), AK Steel (NYSE: AKS), Baidu, Inc. (NASDAQ: BIDU) and Newmont Mining Corporation (NYSE: NEM).

This morning, China Armco Metals, Inc. (OTCBB: CNAM) announced that the company's financial results for the third quarter and first nine months of 2009.

Net revenues for the third quarter of 2009 were $27.3 million, an increase of 34.0% compared to the $20.4 million recorded in the third quarter of 2008. The increase in revenue is largely attributable to a stronger overall business environment in 2009 as compared to 2008 which witnessed some business interruptions due to the Beijing Olympics for the months of July through September.

Cost of goods sold for the third quarter of 2009 was $26.3 million, as compared to $17.9 million in the third quarter of 2008. Gross margins were 3.8% in the third quarter of 2009 as compared to 12% in the third quarter of 2008. The decrease in gross margins in the 2009 period was largely attributable to a one time sale at a lower gross margin related to a large customer order for chromium in the company's ore sourcing and distribution operations. Operating expenses for the third quarter of 2009 were $452,771, as compared to $344,116 in the third quarter of 2008. These increases are a result of higher levels of sales operations and additional costs related to increases in staff, construction of its metal recycling facility and costs associated with the company's preparations for launching its metal recycling operations.

Income before taxes in the third quarter of 2009 was $275,293 with income taxes for the quarter totaling $1,140,343, inclusive of a third quarter adjustment in tax accruals of $1.1 million. This resulted in a net loss for the quarter of $865,050 or $0.09 per share on a diluted basis based on 10.1 million shares outstanding as compared to net income of $1,355,833 or $0.15 per share on a diluted basis in the third quarter of 2008 based on 9.2 million shares outstanding.

For the first nine months of 2009 China Armco generated a 27.9% increase in revenues to $55.4 million as compared to revenue of $43.2 million for the same period 2008. The performance for the first nine months of 2009 was driven by increased sales revenues in the Company's metal distribution business.

Cost of goods sold for the first nine months of 2009 were $49.5 million as compared to $38.6 in the first nine months of 2008. Gross margins were 10.3% for the nine months ended September 30, 2009 as compared to 10.5% in 2008 for the same nine month period.

Investors are urged to read yesterday's press release for complete details.

The press release states that management is witnessing strong sales momentum in the fourth quarter, traditionally the strongest quarter of its distribution business, and now anticipates full year 2009 revenue ranging between $90 million and $95 million, with net income ranging between $4.5 million and $ 5 million. Management also anticipates that its metal recycling operation will be completed and tested sometimes in December of 2009 and ramp production starting in the first quarter fueling substantial growth in 2010.

Commenting on the company's financial performance, Kexuan Yao, CEO and Chairman of Armco Metals stated, "We are pleased with the top line performance we achieved in the first nine months of 2009. Our bottom line was adversely affected by two items which we do not anticipate will recur in the future. More importantly we see strong momentum in the fourth quarter coupling with the launch of our metal recycling business setting the stage for what we believe will be a very prosperous 2010. We are excited to enter this new business line and look forward to providing more information about these operations after they are launched in the near future."

The stock closed yesterday at $3.09 cents a share.

For an in-depth profile of China Armco Metals, visit

AK Steel (NYSE: AKS) up 2.4% on 6.5 million shares traded. AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.

Baidu, Inc. (NASDAQ: BIDU) up 2.6% on 1.4 million shares traded. Baidu, Inc. is the leading Chinese language Internet search provider.

Newmont Mining Corporation (NYSE: NEM) up 2% on 9.6 million shares traded. Newmont Mining Corporation is one of the leading mining companyies in the U.S.

This advertisement is provided by Wall Street Enews, a division of Stock Market Alerts LLC, an electronic broadcaster and publisher of this release, and hereafter referred to as "the company." The company also maintains a contractual, working relationship with Wall Street Capital Funding LLC. and its Wall Street News Alert brand. For current services performed for China Armco Metals, Inc. (OTCBB: CNAM), China Direct Industries, Inc. ("China Direct Industries"), Dragon Capital Group Corp, China America Holdings, and Dragon International Group Corp., the company has been compensated a total of Three Hundred Thousand Dollars (Two Hundred and Fifty Thousand dollars for current services and Fifty Thousand dollars for previous services) by China Direct Investments Inc., a Florida corporation, and a wholly owned subsidiary of China Direct. The company does not hold any shares of the stock. Because the company received compensation for its services, there is an inherent conflict of interest in the company statements and opinions and such statements and opinions cannot be considered independent.

The information contained in this press release is for informational purposes only, and not to be construed as an offer to sell or solicitation of an offer to buy any security. The company makes no representation or warranty relating to the validity of the facts presented nor does the company represent or warrant that all material facts necessary to make an investment decision are presented above. Stock Market Alerts LLC is an advertising company and therefore, this release should be viewed for informational purposes only.

The company relies exclusively on information gathered on the public company, such as public filings, press releases and its web sites. Investors should use the advertising information contained in this release as a starting point for conducting additional research on the public company in order to allow the investor to form his or her own opinion regarding the public company. Factual statements contained in this publication are made as of the date stated and they are subject to change without notice. The company is not a registered investment adviser, broker or a dealer.

Investing in the public company that this release is providing service for should be reviewed as speculative and a high-risk and may result in the loss of some or all of any investment.

This release may contain statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements.