AGORACOM Small-cap Investor Relations Blog

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

SinoHub’s business was founded in 2000 by veteran entrepreneur Harry Cochran and electronic component industry veteran Lei Xia to participate in the rapid growth of the electronics business in China. The company is engaged in electronic component sales and provides world-class supply chain management services with transparent information access for participants in the electronic components supply chain in China.

On May 15th, the Company reported another quarter of strong performance for the three months ended March 31, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Total revenues: $18.1 million which represents a 56% increase.
• Net income: $2.0 million. That’s an 83% increase.
• As of March 31, SinoHub had $4.9 million in non-restricted cash and cash equivalents.

MY COMMENTS:

Going back to the net income of $2.0 million, that’s important when you consider the fact that their weighted average shares that they are comparing to last year is actually up 30% so they had a big quarter there. The Company closed yesterday at $2.50

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Valves Technology, Inc. is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries.

On May 15th, the Company announced their financial results for the first quarter ended March 31, 2009 of its fiscal year 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Net revenue was $17.2 million, an increase of 32.8%
• Gross Profit was $8.3 million, an increase of 63.0%
• Net income was $3.0 million, or $0.05 per diluted share, compared to $1.8 million, or $0.04 per diluted share last year
• The Company also has $16.3 million in cash and cash equivalents

MY COMMENTS:

Here’s what I also like. The Company currently has an order backlog by the middle of this year. So you can see that revenue, that’s going to be on the top-line in this years financial results. Company closed yesterday at $2.35

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China ACM, founded in 2002 and based in Beijing, China, is a leading producer of advanced construction materials for large scale commercial, residential, and infrastructure developments. The company is primarily focused on producing and supplying a wide range of advanced ready-mix concrete materials for highly technical, large scale, and environmental construction projects.

On May 15th, the Company announced their financial results for the three months ended March 31st, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues increased to $9.3 million from $6.8 million during the same time last year.
• Gross profit was $3.9 million compared to $1.8 million.
• Net income increased to $2.3 million, or $0.16 per diluted share, compared to net income of $1.3 million, or $0.15 per diluted share, for the same quarter last year.

MY COMMENTS:

Here’s the most important thing. The Company also expects to remain on track to achieve net income of at least $9 million for fiscal 2009. Why is that important?? The Company’s got 10.5 million shares outstanding, $9 million in net income, that’s $0.85 per share. The Company closed yesterday at $2.50 so based on what the Company is telling us, they are going to be trading at just 3 times earnings right now so that’s pretty good value.

As always, this is my view in a snapshot.  It is intended to give you a running start into your research.  Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1.  ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges.  It provides you with the best of the best in two ways.  First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open.  Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2.  Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies.  As always, we will disclose any IR relationship with any public company.  Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Readers of this blog or viewers of AGORACOM Small Cap TV are well aware of the fact we are very bullish on Chinese small-cap and mid-cap companies.  I’m bullish on China for 2 big reasons:

1. OBVIOUS – China is going to be the place to be for the next 5, 10, 20 years.  If you’re looking for growth and some real home-runs, this is where you are going to find them
2. NOT OBVIOUS – Chinese stocks have been smashed over the past 12 months as funds used their huge gains on Chinese stocks to liquidate and raise cash.  In other words, Chinese companies were a victim of their own success.

If you feel the same way, then you need to know about a great one-day conference in New York City on May 18th – The China Rising Investment Conference.  Here is why you need to attend:

• Market meltdown has created opportunities to invest in outstanding Chinese companies
• Analyst roundtable will include some of the best informed analysts currently following Chinese equities.
• Analysts will be providing their top picks for 2009.
• Listen to successful China investing strategies from leading public and private equity investors.
• Meet senior management from 30 companies that will be presenting from various sectors and market caps.

The conference runs from 8AM – 4PM EST.  If you are in and around New York City, or seriously interested in investing in China, you should attend this conference.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1]  The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2]  Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results.  Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan.  As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009.  Why?  When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into.  This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Yanglin Soybean, Inc. – (OTCBB: YSYB)

Yanglin Soybean, Inc. is a leading non-genetically modified (non-GM) soybean processor in China. The Company manufactures soybean oil, salad oil and soybean meal with an annual processing capacity of 520,000 metric tons in 2008. The Company’s products are sold directly to its customers or through distributors. Majority of Yanglin Soybean’s customers are located in Northern China.

On April 13th, the Company announced their results for 2008.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues up 61.5% to $250.7 million exceeding its guidance.
• GAAP net income grew 39.3% to $14.4 million also exceeding guidance.
• Cash and cash equivalents about $30.4 million.

MY COMMENTS:

We have a quote here from the CEO, Shulin Liu who said, “Despite the current economic environment, we expect the overall market fundamentals of the Chinese soybean industry to remain generally stable.” – Why’s that?? Well just look at what the Company does. A non-genetically modified soybean processor in China. They manufacture soybean oil, salad oil and soybean meal, so you can imagine that’s pretty much always going to be in demand in China.

As always, this is my view in a snapshot.  It is intended to give you a running start into your research.  Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1.  ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges.  It provides you with the best of the best in two ways.  First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open.  Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2.  Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies.  As always, we will disclose any IR relationship with any public company.  Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George