Sutor Tech Group (NASDAQ:SUTR)

1:25PM Please see new GeoTeam articles.  "Capitalizing on China's Stimulus Plan - Part I" and "Companies That May Benefit from China's Stimulus".

In our previous research, from May 12, 2008, the GeoTeam voiced a concern:

Thus far, the company has produced EPS growth in excess of the Preferred GeoTeam minimum of 30% and meets our required 15% Return On Equity threshold. "We are somewhat concerned that, based on published estimates, growth in 2009 is forecasted to slow down to 15%. On the bright side the company has been exceeding estimates."

Per the Third Quarter Financial Press Release the company once again exceeded published estimates. Specifically they beat estimates by 29%. The GeoTeam will monitor the situation to see if analyst estimate will be revised upward.

( Source: Press, May 15, 2008 )

Came public via a reverse merger transaction in 2007.

The GeoTeam is very impressed with the progress SUTR has made since being a public company. SUTR has shown steady growth for six quarters in row in revenue and net income. EPS has also shown steady and healthy gains despite more shares as a result of the reverse merger transaction.

Thus far, the company has produced EPS growth in excess of the Preferred GeoTeam minimum of 30% and meets our required 15% equity threshold. We are somewhat concerned that, based on published estimates, growth in 2009 is forecasted to slow down to 15%. On the bright side the company has been exceeding estimates.

The third quarter financials, which are due soon, will help shed some more light on future growth prospects. If the 2009 EPS growth rate can improve, the GeoTeam believes it may be possible for SUTR to approach the more aggressive valuation scenarios outlined in this discussion.

The GeoTeam holds a position in SUTR. Good to Cancel Sell limits are in place ranging from $8.1 to $14.9.