Bsa 500 Week 4 Assignment

China XD Plastics Company Ltd. (CXDC)

After searching Yahoo Finance I found a plastics company that is growing very rapidly.

“China XD Plastics Company Limited, a specialty chemical company, through its subsidiary, Harbin Xinda Macromolecule Material Co., Ltd., engages in the development, manufacture, and distribution of modified plastics primarily for use in the fabrication of automobile parts and components in the Peoples Republic of China. (Financ.yahoo.com, 2012).”

The business has a list of their financial data for their income and balance statements that have helped explain how this company is doing overall. The gross profit margin for the company has increased by four times what it was just two years prior. The net profit shows even greater growth. Although this company is relatively small, the growth that they show is very promising for someone looking to invest. While the market that China XD (CXD) is in is a rather large market. The approach taken in targeting the items that they produce has helped this company to grow rapidly. Research and development spending has grown and is a good indication that CXD is looking at more ways to gain ground on its competition and find new areas in this market to grow. Another key indicator that this is a good investment is the Stockholder Equity (SE) indication as to how much the SE has grown from 2009. In 2009 the SE was $21,520, in 2011 the amount climbed to $173,922. A key fact that I noticed is the company’s debt. Even though the company continues to grow and do well in its market, the debt generated yearly has stayed fairly similar. This indicates that this company is utilizing the resources available and generating profits.

Con-Way (CNW)

“Con-way Inc., together with its subsidiaries, provides transportation, logistics, and supply chain management services to various manufacturing, industrial, and retail customers in North America and internationally. The company’s Freight segment provides day-definite regional, inter-regional, and transcontinental less-than-truckload freight services with a fleet of line-haul, and pickup-and-delivery tractors and trailers. As of December 31, 2011, this segment owned and operated approximately 9,200 tractors and 26,400 trailers. Its Logistics segment develops contract-logistics solutions, including the management of complex distribution networks; and provides supply-chain engineering and consulting services, as well as multimodal freight brokerage services. (Conway. 2012)”

While the company’s assets have improved from the last few years, it seems that this company is scrambling to recover from recent market difficulty. Looking at the Financial Statements for this company indicates those difficulties and also shows that Con-Way (CNW) is slowly recovering from difficult times.