China XD Plastics has much higher margins than its main competitor according to the report, though it spends far less on R&D. The report also highlights that the company reported higher revenues and net income in SEC filings than in SAIC filing from 2008 to 2010.
The report also says that China XD Plastics' CFO refused to answer any questions about the company.
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TheStreet Ratings team rates CHINA XD PLASTICS CO LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA XD PLASTICS CO LTD (CXDC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: