Out Fox The $treet

Lihua International (LIWA) remains a top investment in the Opportunistic portfolios as its recycled and refined copper products remain in high demand in China. Today LIWA upped copper anodes product shipments for 2010 and increased the demand for 2011. Considering that LIWA already had demand in excess of supply even after doubling capacity, this is more great news for the company that trades at roughly 6x '11 estimates. LIWA has already shipped 11K tons of copper anode in 2010 after only forecasting 8-10K tons back in October. Now they expect shipments of 12.5K tons for all of 2010. More great news that LIWA is exceeding internal estimates especially considering that demand continues to pile up. Total demand has now be raised to 122-134K metric tons up from the last estimate of 110K mt. Considering they expect to increase production capacity to 75K mt in the 2nd half of 2011 it appears that demand is approaching double that of their supply. LIWA has a ton of growth opportuniti...

Today Lihua International (LIWA) announced a major supply contract for copper anode equivalent to nearly 40% of their expected 2011 production. Even more incredibly is the announcement of more then 80,000 metric tons is potential contracts which alone exceed the production expectations for 2011 even after building another facility. Guess this explains why the stock soared over 11% yesterday. Guess this news wasn't that guarded. LIWA along with several other Chinese reverse merger small caps continue to be the cheapest investments into the China economy. Yet most investors continue to avoid these stocks due to fraud scares as if the US market is that safe. LIWA also confirmed guidance for 2010 and expansion plans are expected to begin soon. This remains one of the best ways to play the expected copper shortage beginning in 2011 and the huge demand from Asia. Anybody concerned about fraud can limit the position to less then 5% or diversify among other China plays like LLEN, PUDA,...