Posted on November 15, 2009 - by Level13

San Teh revisited

Photo by eva101

1.5 years ago, I made a posting on San Teh:
http://level13-analysis.blogspot.com/2008/05/appraising-san-teh.html

Now I feel its time to sit up and take notice of this sleepy stock again. For the last 6 months, it has been trading at $0.25 to $0.35 with low daily volume. San Teh is currently in a sweet spot to ride on China’s construction and infrastructure boom. The catalysts for its share price appreciation are slowly appearing.

Catalyst 1:
Demand for cement remains strong due to the re-construction after the Sichuan earthquake and China’s infrastructure stimulus spending. So far the cement prices around different regions in China have held up well.
http://www.chinadaily.com.cn/bizchina/2009-03/02/content_7527574.htm

Catalyst 2:
The government is continuing to eliminate backward production capacity. China is looking to eliminate 600 million tons of production capacity from old, outdated plants by 2012. Initially announced in 2007, the move will involve over 3000 local enterprises, China Cement reported. Read more…

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