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No. of Recommendations: 10
Some of the highlights from the conference call:

- CFSG has a strong track record in the iron & steel industry; the only one of its competitors to have completed contracts over $5 million

- iron & steel made up about 70% of revenues with power generation another 20%

- have generally been able to pass rising raw material costs on to customers (gross margin target between 50%-55%)

- CEO Brian Lin said he expects to see consolidation in the iron & steel industry in the near future which should enable CFSG to shore up more market share

- CFSG is actively pursuing acquisitions, looking for vertical expansion (transportation, nuclear, etc.), working to enter international markets

- entering final stages of negotiations with two potential acquisitions

- trying get a contract on new power plant in India with Tata Power, but progress has been slower than expected

- potential projects in Thailand, Pakistan, and Malaysia through Chinese general contractors

Other

margins on product sales have been steadily increasing as more proprietary products are being sold (margin rose to 70.8% in Q1 08 from 64.7% in Q4 07 and 60.6% in Q1 07)

despite higher gross margins, it looks like we may have to get used to operating margins in the low 30s as selling and administration costs have ramped up with the rapid growth

R&D expenses returned to a more normal level in Q1 08 from an unusually low level in Q1 07
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