Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese coal-based chemical maker ShengdaTech (NASDAQ:SDTH) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at ShengdaTech's business, and see what CAPS investors are saying about the stock right now.

ShengdaTech facts

Headquarters (founded)

Tai'an City, China (2005)

Market Cap

$194.59 million


Diversified Chemicals

Trailing-12-Month Revenue

$149.4 million


Chairman/CEO Xiangzhi Chen

CFO Anhui Guo

Return on Capital (average, last three years)



LSB Industries (NYSE:LXU)

CAPS members bullish on SDTH also bullish on:



General Electric (NYSE:GE)

CAPS members bearish on SDTH also bearish on:

American Oriental Bioengineering (NYSE:AOB)


Sources: Capital IQ (a division of Standard & Poor's); Yahoo! Finance; and Motley Fool CAPS.

Over on CAPS, 278 of the 283 All-Star members who have rated ShengdaTech -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include Ayax2006 and cclogic77, both of whom are ranked in the top 6% of our community.

Late last month, Ayax2006 highlighted several of Shengda's positives: "solid cash flow and balance sheet, produces chemicals (including fertilizers), will eventually rebound strongly."

In a pitch from two weeks earlier, cclogic77 follows that bullish line of logic:

Had over 130m cash at the end of 2008 q3, great earnings growth over 2008, and excellent cash flows. Some LT debt, 114m, but the issuance of this should only help the company grow as it uses the money to invest in capital and position itself for expansion.

The agriculture/fertilizer/chemical industries are good ones to be in during this economy, and should continue to grow. This looks like a great buy.

What do you think about ShengdaTech, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Sina are Motley Fool Stock Advisor selections. American Oriental Bioengineering is a choice of Motley Fool Hidden Gems and Global Gains, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.