Agoracom Blog Small-Cap Company Feature: Deer Consumer Products

Posted by AGORACOM at 9:30 AM on Tuesday, March 2nd, 2010

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.


Deer Consumer Products (OTC.BB:DCPD, as of July 17th 2009, NASDAQ:DEER)

Deer- header

Deer Consumer Products, Inc. is a U.S. public company (stock symbol: DEER) headquartered in China. We are a market leader in the design, manufacture and sale of kitchen electronics targeting both international and the Chinese domestic markets. Established in 2001, we are operated by founders/managers. Deer is a direct access and primary beneficiary of consumer wealth growth worldwide.

On March 2nd 2010, DEER announced record 2009 financial results

Check out the full details below!

Read Full Press Release

China Stocks TV Segment


  • Revenue of $81.3 million, an increase of 86% from $43.8 million in 2008
  • Net income of $12.4 million, an increase of 268% from $3.4 million in 2008
  • Earnings Per Share (EPS) of $.53, an increase of 170% from EPS $0.20 in 2008 on a fully diluted basis
  • Record revenue and net income significantly exceeded 2009 guidance
  • Strong balance sheet, approximately $80 million in cash without long term debt


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

1. – 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. Chinese 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.


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