Market News: China Armco Metals - August 14, 2009

  Stock Market Alert's performance stock list
includes: China Armco Metals, Inc. (OTCBB: CNAM), Titanium Metals Corp
(NYSE: TIE), Dynamic Materials Corporation (NASDAQ: BOOM) and Horsehead
Holding Corp. (NASDAQ: ZINC).

Breaking News: China Armco Metals, Inc. (OTCBB: CNAM) reports record financial results for the Second Quarter and first six months of 2009. The company, a distributor of imported metal ore with plans to launch a new state of the art scrap metal recycling facility in China, issued a press release this morning announcing record second quarter financial results for the quarter ended June 30, 2009. According to the release, financial highlights included:

Revenue for the second quarter ended June 30, 2009 increased by 71.2% to $22.5 million compared to revenue of $13.01 million in the second quarter ended June 30, 2008. The increase in revenue was mainly attributable to increased sales from its metals distribution business in China as demand for metal ore rose significantly. Net income for the second quarter of 2009 was $3.37 million compared to $1.85 million in the second quarter of 2008. This increase was attributable to an improving pricing environment in metal ore in China coupled with the positive effects of China's November 2008 economic stimulus package. On a diluted basis, earnings per share for the second quarter of 2009 were $0.33 on 10.1 million common shares outstanding compared to $0.24 in the second quarter of 2008 on 2.5 million fewer shares.

The press release goes on to state, the strong overall performance for the first six months of 2009 was largely driven by significant growth in our metals distribution business leading to record sales of $27.9 million for the first six months of 2009 compared to $22.79 million for the same period in 2008. Gross Profit for the first six months of 2009 was $4.63 million compared to $2.1 million for the first 6 months of 2008 period and net income was $3.5 million compared to $2.5 million which included a one-time gain of $1.2 million from a contract termination. On a diluted basis, earnings per share for the first six months of 2008 were $0.34 on 10.1 million common shares outstanding as compared to $0.38 in the same period in 2008 on 2.5 million fewer shares.

At June 30, 2009, total assets were $38.13 million, an increase of over 30% from the $28.82 million at December 31, 2008. At June 30, 2009 total current assets reached $25.52 million and working capital was approximately $6.15 million. Shareholder equity reached $18.76 million with 10.1 million common shares outstanding up from $15.29 million at December 31, 2009.

Commenting on the second quarter results, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are extremely pleased with the strong performance of our operations in the first half of 2009. Our sales efforts in the second quarter benefited from a strong rebound in several key metal markets. We believe this momentum will continue in the coming quarters and we intend to make every effort to improve our operating results further. We believe our expanded credit lines, coupled with the anticipated launch of our scrap metal recycling facility later this year places the company in the strongest financial position in its history and poised for an extended period of exceptional growth for the benefit of our shareholders."

This week, China Armco Metals also reported that it received a Back to Back secured Letter of Credit from DBS Bank Ltd. ("DBS") on April 22, 2009 for up to $12 million to be used to finance purchases of various metal ores. DBS is one of the largest financial services groups in Asia, and its "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region.

Kexuan Yao, Chairman and CEO of China Armco Metals, Inc., commented "We are extremely pleased to have secured this $12 million credit facility. We see continued evidence that the Chinese economy is on the road to recovery and there has been an increasing demand for commodities coupled with a rising price environment. We believe this additional financial flexibility will enable us to opportunistically grow our distribution business and significantly improve our overall operating results."

The stock closed yesterday at $1.55 cents a share.

For an in-depth profile of China Armco Metals, visit http://www.wallstreetenews.com/view-company-profiles.php?profile=CNAM_080909.

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