China America Holdings, Inc. (CAAH), a Chinese chemical company similar to DuPont (DD) or Huntsman Corporation (HUN) in the United States, reported a strong end to 2009 in its 10-Q filing with the Securities and Exchange Commission.

China America Holdings, Inc. (CAAH), a diversified Chinese chemical company, reported revenues that increased 40% to $11 million, due to higher sales volumes for its liquid coolants. Meanwhile, its gross profit margin increased from 2.9% to 8.6%, helping the firm to dramatically narrow its net loss and move towards profitability.

Going forward, the company plans to continue their cost-savings efforts and increase efficiency in their operations during this volatile economy. Investors can also look forward to the firm’s historical peak season, from March through July, which should help drive earnings through the second quarter of fiscal 2010.

According to China America’s 10-Q filing, it also plans to benefit from the Chinese economic recovery:

“The Chinese government announced a $586 billion domestic economic stimulus program in November 2008 designed to support domestic economic activity. The two-year program includes spending for housing, infrastructure, agriculture, health care and social welfare. In addition to previously announced tax rebates, the program includes a tax deduction for corporate capital expenditures.

While we cannot directly attribute specific sales to the impact of this program, we believe we have seen a benefit to our company as the overall Chinese economy begins to recover partially as a result from this stimulus program. The tax rebates on export sales have indirectly helped us as our customers have been hurt by tariffs and can take advantage of the rebates, which could translate to more business for us.

We expect the rebound in the Chinese economy to continue during the current fiscal year and allow us to regain previous sales levels and allow prices to return to previous levels.”

Source: 10-Q Filing

China America’s balance sheet also remains very robust, with its asset growing some 10% during the past quarter. During the period, the company reported $2.3 million in cash and total assets of $15.3 million, with no long-term debt and current liabilities of just $6.7 million. As a result, the company is poised to survive the downturn and capitalize on growth opportunities.

Popularity: 7% [?]

NewMarket Technology, inc. (NWMT), NuMobile, Inc. (NUBL), Nova Energy, Inc. (NVAE), and China Crescent Enterprises, Inc. are all a part of a new Greenfield Partnership Program that is expected to generate strong revenues for all parties involved.

NewMarket Technology, Inc. (NWMT) today released a Greenfield Partnership Program Webcast to provide a preview of upcoming financial reports for fiscal year 2009 for NewMarket and program participant companies, including NuMobile, Inc. (NUBL) , Nova Energy, Inc. (NVAE) and China Crescent Enterprises, Inc. (CCTR) . The Greenfield Program was introduced by NewMarket last year to accelerate and enhance the introduction of new technology innovations into new markets. The Webcast further discusses the $200 million revenue potential in China for Greenfield Program participant companies and reviews NewMarket’s anticipated net income improvement for 2009 over 2008.

China Crescent CEO Dr. James Jiang recently announced a goal of generating $200 million in revenue in China through partnership programs in 2010. The $200 million represents an additional $100 million revenue goal on top of China Crescent’s $100 million revenue goal for 2010. The additional $100 million in revenue would not necessarily be recognized directly by China Crescent, but otherwise to be recognized in a combination of opportunities won by individual Greenfield partner participants.

The presentation is now available for on-demand review on the NewMarket corporate website www.newmarkettechnology.com or directly at http://www.newmarkettechnology.com/wcgf_20100335.htm.

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About NuMobile, Inc. (www.numobileinc.com)

NuMobile is building a portfolio of security and software solutions for the global mobile computing and smartphone market. Through a roll-up strategy, NuMobile plans to acquire and develop mobile computing solutions for a variety of applications, including mobile banking, for the global marketplace. The demand for mobile security and software applications is being driven in large part by the growing number of mobile phone sales into emerging economies that currently do not have substantial access to the Internet via desktop computing. Already in North America, the Company has also forged a partnership in the Chinese market and is developing a plan for the emerging economies of Latin America and East Africa. NuMobile is a SEC fully-reporting public company listed on the Over-the-Counter Bulletin Board.

About Nova Energy, Inc. www.novaei.com

Nova Energy, Inc. has launched an updated corporate strategy to pursue several business lines in the growing economy of East Africa, initially in Kenya. Nova has already begun several initiatives in the region to include initiatives in the Technology, Utility, Housing and Health products industries. Nova Energy has also launched a communications and awareness campaign. The Company is quoted on the OTCBB and files its periodic reports. The Company is also dually quoted on the Pinksheets under NVAE.

About China Crescent Enterprises, Inc. (www.chinacrescent.com)

China Crescent is a systems integration service provider that markets technology outsourcing services in China including the sale and service of brand name technologies such as Microsoft, Oracle, Cisco, IBM, HP and Dell. Following a recent strategic acquisition, the Company has expanded its business line to include original design manufacturing (ODM). China Crescent reported over $40 million in profitable revenue in 2008. The Company has reported record profits through the first 9 months of 2009 and anticipates reporting record profit in the 2009 annual report. Management has set a goal of reaching $100 million in revenue in 2010.

Headquartered in Dallas with operations in Shanghai, Shenzhen, Dalian and Beijing, China Crescent bridges the gap between global business cultures to assist clients worldwide realize the advantages of the high quality, low cost technology products and services available from China. China Crescent also assists clients in localizing products and services to realize the tremendous growth potential available by expanding into the Chinese Market.

About NewMarket Technology, Inc. (http://www.newmarkettechnology.com/)

NewMarket is a reporting company with audited financial reports filed with the SEC. NewMarket provides systems integration, technology infrastructure services and emerging technology worldwide. NewMarket has a focus on providing technology and support services to rapidly growing economies where technology purchasing is on the rise. In addition to its base of operations in North America, NewMarket has operations today in the growing economies of China, Southeast Asia, Brazil and Northern Latin America. Last year the Company reported over $40 million in revenue from Asia and over $20 million in revenue from Latin America. Overall, NewMarket reported over $95 million in revenue for 2008.

Across the globe, NewMarket is a Microsoft and Oracle partner, distributes various computer hardware and peripherals from brand partners such as Dell, HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized reseller of operating systems and various software from companies such as Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company works with emerging technologies such as mobile computing, various security and wireless broadband technologies. NewMarket’s rapid growth since 2002 has placed the Company on the Deloitte Technology Fast 500 for 5 consecutive years. NewMarket was recognized as the third fastest growing technology company in the United States in 2006 and the number one fastest growing technology company in North Texas for two years in a row.

“SAFE HARBOR STATEMENT” UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NewMarket’s actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

Popularity: 5% [?]

Chinese and Hong Kong stocks closed higher on Monday after natural resources cmopanies were boosted by a jump in copper prices following Chile’s earthquake. Chile is currently the world’s largest producer of the metal.

Hong Kong’s Hang Seng index gained 2.17%, or 448.23 points, to close at 21,056.93. Meanwhile, Chinese stocks rose 1.18% on the Shanghai Composite, which ended up 35.90 points at 3,087.84. Trading volumes were heavy on both exchanges.

In recent trading, May copper futures were up about 8 cents, over 2%, at $3.36 a pound on the Comex division of the New York Mercantile Exchange. The commodity reached as high as $3.48, its strongest point since January, in electronic trading over the weekend after the 8.8 magnitude quake struck Chile.

Popularity: 1% [?]

U.S. and international markets moved lower during today’s session following China’s move to curb bank lending and cool down its economy. However, the losses were partially offset by more bullish confidence in the European Union following Greece’s troubles.

China’s announced an increase in bank reserve requirements by 0.5% for the second time in five weeks in order to limit lending to consumers and businesses. The country is hoping that the move will help slow down the country’s rapid economic growth.

The country’s Bureau of Statistics noted on Thursday that annual inflation had more than doubled in January versus the prior month, to 4.3%. Meanwhile, the average housing price rose 9.5% last month from a year earlier, which is the fastest rate in 19 months.

Luckily for the country, the rising asset prices have not yet impacted consumer prices, which had caused unrest in the past when eroding workers’ spending power. Obviously, this is a bad situation as it can lead to class division and other socioeconomic problems.

Popularity: 1% [?]

Chinese stocks retreated on Wednesday following a move by the government to curb lending. The Chinese government has been telling some major banks to curb lending, which could cloud their outlook and put a damper on economic growth in the country.

While the move to limit growth is ultimately good for the economy, according to many economists, the slowdown will surely constrict the country’s investments and slow down the rapid growth in household wealth that came on the heels of the boom.

Currently, these concerns are merely rumors and not confirmed fact. But ultimately, rumors are all it takes to move the markets. Hong Kong’s Hang Seng index fell 1.31% or 283.75 points to 21,394.23, while China’s Shanghai index fell 1.04% to 3,213.17.

Major Chinese banks also moved lower during the session. Bank of China dropped 2.93%, China Construction Bank fell 2.65%, and Industrial and Commercial Bank of China dropped 1.98%. Meanwhile, other financials were also lower, forcing the average down 1.42%.

Notably, there are several actions that have already been taken that are not simply rumors. China’s central bank has ordered at least two banks to lift their reserve ratios by 0.5%, while also clamping down on excess liquidity via raising short-term debt yields over the past two weeks.

Combined, the speculation and confirmed actions have led to a global drop in equity prices. Latin American stocks in particular were hit as China represents a major export market for raw materials and commodities from countries like Brazil.

Popularity: 2% [?]

Toyota Motor Corp. (TM) has the best-selling Prius, General Motors Corp. (GM) will soon roll-out the highly anticipated Volt, while Honda Motor Co. (HM), Ford Motor Company (F), Daimler AG (DAI) and every other large automaker either has hybrids on the market or is planning to introduce them – but a key component of the electric motors in hybrids is almost completely controlled by China.

The New York Times today published a story titled “China Tightens Grip on Rare Minerals.” It is a little known, but increasingly important fact, that China produces “more than 93 percent of so-called rare earth elements,” and specifically more than 99 percent of two particular elements, dysprosium and terbium, that are key components in hybrid cars.

Despite increasing demand, China appears to be ready to tighten worldwide supply in a move to get manufacturers into China as well as ease the incredible environmental burden China has so far allowed its mining practices to take:

China’s Ministry of Industry and Information Technology has drafted a six-year plan for rare earth production and submitted it to the State Council, the equivalent of the cabinet, according to four mining industry officials who have discussed the plan with Chinese officials. A few, often contradictory, details of the plan have leaked out, but it appears to suggest tighter restrictions on exports, and strict curbs on environmentally damaging mines.

Beijing officials are forcing global manufacturers to move factories to China by limiting the availability of rare earths outside China. “Rare earth usage in China will be increasingly greater than exports,” said Zhang Peichen, the deputy director of the government-linked Baotou Rare Earth Research Institute.

The move to tighten control of rare earth metals, is also, according to some, born of sheer necessity:

“Sometime in 2011 to 2012, Chinese domestic demand will surpass Chinese domestic production,” says Jack Lifton, an analyst and consultant who specializes in what he calls the “technology metals” and advises mining industry clients developing rare earth projects in North America. “This means no more Chinese exports of rare earths, other than in finished goods made in China that they allow to be exported.”

A Toyota Prius requires between 2 and 4 pounds of rare earth metals for its electric motor – a requirement that may become increasingly difficult if not impossible to meet. Concern about a crippling shortage may seem overly dramatic, but the United Kingdom’s Times notes that about 20% of Japan’s imports of rare earth metals are already believed to enter through the black market because supply is so scarce.

Popularity: 13% [?]

Chinese solar companies Suntech Power (STP), Trina Solar (TSL), Yingli Green Energy (YGE), JA Solar (JASO), LDK Solar (LDK), and China Sunergy (CSUN) have all performed terribly recently as have their U.S.-based counterparts First Solar (FSLR) and Evergreen Solar (ESLR). A look at China’s rise to become the global leader in solar energy shows how the country has, in the process, destroyed the basic economics of the industry – hurting both Chinese and American solar companies.

The New York Times ran a frontpage article today titled “China Racing Ahead of U.S. in the Drive to Go Solar.”

The article’s takeaway is that despite President Obama’s ambition to make the United States “the world’s leading exporter of renewable energy,” China is actually walking the walk rather than just talking the talk:

“I don’t see Europe or the United States becoming major producers of solar products — they’ll be consumers,” said Thomas M. Zarrella, the chief executive of GT Solar International, a company in Merrimack, N.H., that sells specialized factory equipment to solar panel makers around the world.

Since March, Chinese governments at the national, provincial and even local level have been competing with one another to offer solar companies ever more generous subsidies, including free land, and cash for research and development. State-owned banks are flooding the industry with loans at considerably lower interest rates than available in Europe or the United States.

Tellingly, Chinese-based Suntech Power Holdings [[STP]] will become the second-largest supplier of photovoltaic (PV) cells in the world this year behind Arizona-based First Solar, Inc. [[FSLR]].

But there is a darkside to China’s impressive growth for those looking to capitalize on the rise of Chinese solar companies:

Chinese companies have already played a leading role in pushing down the price of solar panels by almost half over the last year.

Indeed, less than two years ago the average U.S. retail price of a 200-watt module was $1500 while now it is less than $650.

From an investment-perspective, the real story here is that, thanks in part to China’s aggressive strategy for growing its solar industry, the solar market is flooded with products for which there is no demand. Demand for solar panels is largely dependent on government subsidies because solar energy is still more expensive to produce than using fossil fuels or even wind power (even with the drop in the price of solar panels), and these government subsidies worldwide are being scaled back due to tax revenue concerns. The decrease in subsidies is only compounded by dampened demand due to the worldwide economic downturn. Basically, the economic downturn is a double-whammy for solar demand: it hurts demand the way a recession hurts demands for all kinds of products while also decreasing government revenue on which solar subsidies (and much solar demand) depend. Global demand for solar panels is expected to drop nearly 20% this year.

Even worse, this decrease in demand is being met not with a decrease or even flat supply, but with an increase in supply – total solar cell manufacturing capacity will be up more than 50% this year, and is projected to grow at an astonishing annual rate of about 50% for the next 5 years.

This sobering mismatch – increased supply and decreased demand – is taking its toll on Chinese solar companies’ stock prices over the last month:

• Suntech Power Holdings [[STP]] is down 29%.

• Trina Solar Ltd. [[TSL]] is down 16%.

• Yingli Green Energy Holdings [[YGE]] is down 29%.

• JA Solar Holdings [[JASO]] is down 29%.

• LDK Solar Co. [[LDK]] is down 25%.

• China Sunergy Co. [[CSUN]] is down 17%.

This terrible performance is during the same period that the S&P 500 gained 5%. American solar companies are not immune, given the global nature of the solar market:

• First Solar, Inc. [[FSLR]] is down 24%.

• Evergreen Solar, Inc. [[ESLR]] is down 27%.

Looking back 12-months leads to an even less flattering profile for most of these stocks, with many losses far greater than 50%.

The simple fact is the blood-letting is probably only going to continue. Save for First Solar and Trina Solar none of these companies are profitable – and with the very bad economics of the market right now there is no reason to think any of them are going to become profitable or get more profitable any time soon.

Popularity: 100% [?]

China Nepstar Chain Drugstore (NPD) was Monday’s top Chinese stock mover after shares jumped nearly 10% after announcing a special cash dividend.

China Nepstar Chain Drugstore [[NPD]] added nearly 10% per share, or some $66 million in market capitalization, Monday. The Shenzhen, China-based retail drugstore chain announced disappointing second quarter results. EPS were only $0.02 compared to analysts’ expectations of $0.04 and revenue was only $78 million compared to expectations of $86. Worse, same-store sales, a key indicator for retailers, dropped 1.3% from the same period a year earlier.

The key development driving today’s gains was China Nepstar’s announcement that it will play a one-time cash dividend of $1.50 per American Depositary Share to shareholders of record as of September 25.

Popularity: 3% [?]

Sinopec, formally known as China Petroleum & Chemical (SNP), is making headlines for an impressive first half but shares are down anyway. With refining results effectively totally dependent on government fuel price mandates and other company results weakened, the market has reason to be less than impressed.

China Petroleum & Chemical Corp. [[SNP]] is down about 1% in midday trading yesterday after opening higher despite impressive mid-year results, fellow Chinese energy company PetroChina Co. [[PTR]] being up and the energy sector as a whole gaining. What is wrong with this picture?

China Petroleum & Chemical, better known as Sinopec, exceeded analysts’ expectations by more than 20%, posting about $4.9 billion in profit for the first six months of the year largely thanks to China’s easing of strict control of domestic fuel prices.

Unfortunately, China’s government has since lowered the price of petroleum and diesel – which is especially bad for Sinopec given that other operating revenue and income fell by 30% from a year ago. In other words, refining fuel for domestic use was the bright spot for Sinopec thanks to higher prices, but those prices are at the whim of the government, leaving concerns about the second half of 2009.

Sinopec is optimistic however: “Looking into the second half of this year, the state will continue applying proactive fiscal policy and relatively easy monetary policy…increasing domestic demand [for fuel].” Also, the company notes crude oil prices are expected to rise internationally in the second half of the year.

The market seems skeptical though.

Popularity: 5% [?]

China Nepstar Chain Drugstore (NPD) and China Petroleum & Chemical (SNP) announce second quarter earnings on Monday, August 24th.

China Nepstar Chain Drugstore Ltd. [[NPD]] announces second quarter earnings at 8:30 am EDT on Monday. The Shenzhen-based retail drugstore chain that also offers its own private label products is expected to announce EPS of $0.04 on revenue of $86.16 million. If on-target, EPS will drop 50% year-over-year on a sales increase of 1%.

China Petroleum & Chemical Corp. [[SNP]], better known as Sinopec, announces interim 2009 results at 3:30 am EDT. The Beijing-based oil and gas company does not have analyst estimates of its results.

Popularity: 11% [?]