Agoracom Blog

ChinaSecurities.com Small-Cap Company Feature: China Carbon Graphite

Posted by AGORACOM at 10:14 AM on Wednesday, May 19th, 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.

TODAY’S FEATURED COMPANY

China Carbon Graphite, Inc. (OTCBB: CGYV)

China Carbon Graphite Group, Inc. engages in the production of graphite products such as graphite electrodes, fine grain graphite and high purity graphite. The company is the largest wholesale supplier of fine grain and high purity graphite in China and one of the nation’s top overall producers of carbon and graphite products.

On May 18th, 2010, the Company announced its first-quarter 2010 results.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Net revenue increased 68% year-over-year from the first quarter 2009; Net revenue increased 50% from the fourth quarter 2009;
  • Gross profit increased 22% year-over-year from the first quarter 2009; Gross profit increased 209% from the fourth quarter 2009;
  • Operating income increased 51% year-over-year from the first quarter 2009; Operating income increased 120% from the fourth quarter 2009;
  • Cash and cash equivalents were $4.0 million at March 31, 2010 compared to $243,000 at March 31, 2009 and $2.7 million at December 31, 2009.
  • Net cash flow from operation increased 276% to $3.1 million for the first quarter in 2010 from $0.8 million in 2009.

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. 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.

Regards,
George

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