Big opportunity Chinese Steel Corporation

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General Steel Holdings (NYSE: GSI).

Based in Beijing, General Steel is already one of the 30 largest steel producers in the nation. But it has its sights set solidly on becoming one of the 10 largest.

Last year it purchased Shaanxi Longmen Iron and Steel, the biggest steel producer in Shaanxi province, with an output of 2.5 million tons of steel a year. Two weeks ago it acquired 99% of privately owned Maoming Hengda Steel Group, which can produce up to 1.8 million tons of steel a year.

General Steel is just warming up. Chief Financial Officer John Chen says, "We are a merger and acquisition platform." Between the capital markets and internal cash flow, General Steel plans to keep buying up the competition.

As the company grows through acquisitions, sales and earnings will get a big shot in the arm. In fact, they already are. In the first quarter, earnings per share tripled on a 675% increase in revenue.

And General Steel is able to control high raw-materials costs since it owns some of the iron ore and coking coal used to make steel.

I recommend to take a closer look at General Steel Holdings

The Doc