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Chinese Small-Cap Company Feature: China Security & Surveillance Technology, Inc

Posted by AGORACOM at 9:00 AM on Monday, April 26th, 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 Security and Surveillance Technology (NYSE:CSR)

Csr

Based in Shenzhen, China, CSST designs, manufactures, sells, installs, services and monitors electronic surveillance and safety products and solutions, including related software, in China. Its customers are mainly comprised of government, commercial, industrial and education entities. CSST has built a diversified customer base through its extensive sales and service network that includes branch offices and distribution points throughout China.

On April 26th, the Company reported its first-quarter 2010 results highlighted by the rapid growth of demand for CSST’s products and services in China.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Highlights:

  • Gross profit totaled $28.98 million, up 15.8% from $25.03 million in the first quarter of last year.
  • Gross margin was 24.1% compared with 26.0% for the same period in 2009.
  • Net income totaled $3.28 million, up 64.0% from $2.00 million in the first quarter of 2009; and diluted earnings per share totaled $0.05 versus $0.04 last year.

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

Posted in China | Comments Off on Chinese Small-Cap Company Feature: China Security & Surveillance Technology, Inc

Chinese Small-Cap Company Feature: Deer Consumer Products

Posted by AGORACOM at 9:00 AM on Monday, April 26th, 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

DEER Consumer Products (NASDAQ:DEER)

Deer- header

Deer Consumer Products, Inc. (http://www.deerinc.com) is a NASDAQ Global Select Market listed U.S. public company headquartered in China. Deer has a 15-year operating business as well as a strong balance sheet. Supported by more than 103 patents, trademarks, copyrights and approximately 2,000 company-trained seasonal and full-time staff, Deer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer’s product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today’s lifestyles simpler and healthier.

On April 26th, the Company announced today that Deer has signed a total of approximately$10 million in new supply contracts with existing and new customers at China’s Canton Fair, one ofChina’s largest import & export trade events.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Highlights:

  • Revenue of $20.8 million, an increase of 314.1% over revenue of$5.0 million generated in the first quarter of fiscal year 2009.
  • New supply contracts worth approximately US$10 Million

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

Posted in China | Comments Off on Chinese Small-Cap Company Feature: Deer Consumer Products

Congratulations To Timmins Gold (TMM:TSXV)

Posted by AGORACOM at 1:17 PM on Wednesday, April 21st, 2010

Congratulations to my friends Bruce, Arturo and Alex over at Timmins Gold.  The company recently announced that commercial production was achieved at its San Francisco open pit mine in Mexico (I know I’m a little late on this but I’ve been a little distracted lately)

They are one of the most underrated junior gold producers out there in my opinion, which is why I bought shares in the company at $.80 back when Sprott financed the company, including warrants at the same price.  I sold 1/2 in the $1.35 – 1.40 range a couple of months ago but intend to hold the rest for now.

TIMMINS – SAN FRANCISCO – MEXICO .. HA!

What I find particularly amazing and funny is the company is named Timmins Gold, its main project is called the San Francisco Gold Mine and it is actually located in Mexico.  Throw the 22 immutable laws of branding out the window, TMM has broken them all en route to its success 🙂

ONLINE PRESENTATION

Timmins Gold participated in the AGORACOM Online Gold & Commodities Conference back in December 2009.  Here is a link to the presentation if you want to get a great overview of the company – but keep in mind it is 4 months old so you should check the company’s press releases for further updates since then.

We’ve actually covered the company via AGORACOM Small Cap TV since late 2007.

CANACCORD MORNING COFFEE

Peter Grandich posted an update on Timmins that appears to be from the Canaccord Capital, Morning Coffee e-mail message back on April 9th.  Not sure if Canaccord allows it to be posted but since it’s now out in the open, I’ve pasted it below for your convenience.  As a shareholder of the company, assume I am horribly conflicted and make sure to do your own DD.

===============

“Time for you to tag along? Shares of Timmins Gold were not taking a siesta Thursday, rallying on news that commercial production was achieved at its San Francisco open pit mine in Mexico. . .Timmins continues to project production of 80,000 ounces of gold in 2010 with average life-of-mine cash costs of US$412/oz of gold. Canaccord Adams Mining Analyst Nicholas Campbell is looking for production of 74,000 ounces of gold in 2010 at a cash cost of US$468/oz.

With the project successfully achieving commercial production, the company intends to shift its focus from development to exploration. In particular, Timmins plans to complete an exploration program to test for the potential to push back the pit wall to the south, southwest and southeast as well as potentially develop the Chicharra pit to the west.

Based on the current estimated reserve base, at the expanded throughput rate the San Francisco project has a mine life of roughly 4.5 years. However, in addition to reserves, there are 170,000 ounces of measured, indicated and inferred resources that have not been incorporated into the mine plan.

Campbell believes shares could trade significantly higher based on the following: 1) A revaluation as the company moves from development to production: Timmins is trading at 3.2x 2011E CFPS vs. a junior producer average of 11.9x 2011E CFPS. As Timmins ramps up and achieves commercial production at San Francisco, he believes the valuation gap should start to narrow; 2) potential to expand the mine life of San Francisco; and 3) an acquisition target.

Shares trade at a significant discount on P/NAV and Campbell views Timmins as a tag-on acquisition target for a junior producer with operation in Mexico. The next catalyst for Timmins should be the release of an updated resource estimate, expected this quarter. Campbell is also looking for a new resource approaching 1.0 million ounces of gold, which should allow the company to expand the mine life by 3–4 years.”

– Canaccord Capital, Morning Coffee, Canaccord Capital (04/09/10)

===============

Regards,
George

Posted in 43-101's, All Recent Posts | Comments Off on Congratulations To Timmins Gold (TMM:TSXV)

AGORACOM Traffic Sees Increased Visitors and Visits In Q1 2010

Posted by AGORACOM at 1:50 PM on Tuesday, April 20th, 2010

Good afternoon to you all.  As most of you know, I like to share AGORACOM traffic data on a regular basis and today is no exception.  Please find enclosed a Google Analytics shot of our traffic in Q1 2010, compared to Q1 2009 (Click on the image for a larger version):

I’m pleased to report that the number of unique visitors and visits are up 9.12% and 13.13% respectively.  The increases are a result of our ongoing marketing efforts:

1.  Social Media  (Twitter, Facebook and YouTube where we have 3 channels going)

2.  New Online Products (1st ever AGORACOM Online Conference in December)

3.  Traditional Marketing Via Our BNN TV Ads.

On the flip side, we did see an 8.13% decrease in page views that can probably be attributed to two items.  First, March 2009 marked great financial panic as a result of dropping markets, which lead to increased page views from investors looking for answers.  Second, one of our busier HUBS was Freewest Resources which was acquired by Cliff’s Natural Resources in Q4 2009, so we haven’t had the benefit of page views for one of the prominent players within the Ring Of Fire.

CONCLUSION

Overall, the increases in visitors and visits are more important to both our clients and ecosystem as they will drive page views as more news develops within the small-cap industry.  Going forward, we’ll be adding further fuel to the fire via the following exciting initiatives:

  • Our upcoming mobile push in Q2 (iPhone, Viigo and of course our Blackberry partnership)
  • A greater social media push (Look for Facebook and Twitter announcements in Q2)
  • More traditional TV Ads south of the border

Thanks to our great clients and members for continuing to make AGORACOM a great platform for the small-cap industry.

Regards,
George

Posted in AGORACOM News And Events, AGORACOM Traffic, All Recent Posts | Comments Off on AGORACOM Traffic Sees Increased Visitors and Visits In Q1 2010

Important Update On Display Of IP Addresses In Posts

Posted by AGORACOM at 11:34 AM on Tuesday, April 20th, 2010

Dear Members,

On April 16, we announced a plan to display partial IP addresses of all posts made on or after Monday April 26, 2010.  The measure was introduced in order to provide our community with greater transparency with respect to posts on AGORACOM.  As a result of this new measure, members would be able to view other members who may be using the same IP address with just one click – and report any suspicious activity via the AGORACOM violations system.

MEMBER FEEDBACK – WE’RE LISTENING

Though the announcement received a lot of praise from members, we also received feedback in the form of concerns that a display of even a partial IP addresses may lead to privacy issues pertaining to location and or geography. Though we were confident that any such issues were remote, we remain true to our philosophy of building and upgrading AGORACOM on the feedback of our members.

As such, we came up with a solution that maintains the privacy AGORACOM members have come to enjoy, while still achieving the goal of easily viewing members that may share the same IP address.

CHANGES TO IP ADDRESS TRACKING

Given the fact that the primary purpose of the measure is to provide members with an ability to view other members who may be using the same IP address, we have revised the measure as follows:

  1. We will not display any part of the IP address within posts. No partial IP. Nothing. Nada. Zilch.
  2. We will still provide one-click access to view members that share the same IP address
  3. The upgrade will be implemented for all posts made on or after Wednesday, April 28, 2010.  It will not apply to posts made prior to April 28, 2010.

As a result of this new measure, members will still be able to view other members who may be using the exact same IP address with just one click – and report any suspicious activity via the AGORACOM violations system.  At the same time, members do not have to worry about any part of their specific IP address being displayed to the public.

HOW IT WORKS – PRIVACY INTACT

We want to repeat that no part of a member’s IP addresses will be displayed, so there will be no change to the privacy of our members.  Rather, within each post, all members will be able to read a button that says “IP Check”.  The IP address of that post is tracked within the AGORACOM back-end, as it has been over the last couple of years, and will simply match members that are sharing the same IP address.

HOW IT WORKS – TRANSPARENCY

Members that are suspicious of a particular member’s posting will be able to click on “IP Check”.  The AGORACOM system, which keeps track of the IP address in our back end, will automatically display any other members that share the same IP address.  A match does not necessarily mean a violation has occurred but it will allow members to quickly and easily compare the posts of members sharing an IP address for potential multiple alias violations.  If a member suspects a multiple alias violation, they can then easily report it via our “Report Violation” system.

We want to thank all of you for your great feedback and for continuing to make AGORACOM the best small-cap community on the web.  We look forward to any questions and comments you may have pertaining to our new IP address upgrade.

Regards,
George, Paul et al

Posted in AGORACOM News And Events, All Recent Posts | 5 Comments »

New GAO Report on “Rare Earth Metals In Defense Supply Chain” Illustrates Concern With China’s Supply Control

Posted by AGORACOM at 10:45 AM on Tuesday, April 20th, 2010

On April 14, 2010, the Government Accountability Office (GAO) submitted a Report On Rare Earth Materials In The Defense Supply Chain to the Committees on Armed Services of the Senate and House of Representatives.  It is a 38-page report that is well worth the read for anybody invested or interested in Rare Earth Metals companies.  I read it and came away with a clear impression of concern over China’s supply of Rare Earth Metals.  Here are some highlights:

I found it interesting that the DOD has not yet identified national security risks as a result of REM dependency, yet a few pages later states that China produced 97% of rare earth oxides in 2009.  Furthermore, the report goes on to say that refined rare earth metals are almost exclusively available from China.

Now, logically speaking, that isn’t necessarily a concern if rare earth metal supplies could be readily developed and produced elsewhere.  Unfortunately, that doesn’t seem to be the case according to this:

The report goes on to add that other obstacles stand in the way of rebuilding a US supply chain including:

  • Environmental Standards & Compliance – Significantly higher in the US than China
  • Patents – Foreign companies own patents on manufacturing key rare earth metals
  • Time – Alternatives to rare earth metals could take 10-15 years and still not meet spec requirements

Overall, this is a great report and a must read for anyone that is investing in the future of this space.

Regards,
George

Posted in All Recent Posts, Rare Metals | 2 Comments »

Chinese Small-Cap Company Feature: China Energy Corp

Posted by AGORACOM at 9:30 AM on Tuesday, April 20th, 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 Energy Corp. (OTC.BB:CHGY)

China Energy Corporation produces and processes raw coal for domestic heating, electrical generation and coking purposes for steel production primarily in the People’s Republic of China, and acts as a brokerage in facilitating coal trade transactions. The Company produces coal through its subsidiary Inner Mongolia Tehong Coal Group Co, Ltd. (“Coal Group”) and supplies heating and electricity requirements throughout the XueJiaWan district through its subsidiary Inner Mongolia Zhunger Heat Power Co., Ltd. (“Heat Power”).

On April 20th, the Company reported it’s financial results for the first quarter of its fiscal year ending November 30, 2010.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Highlights:

  • Revenue of $20.8 million, an increase of 314.1% over revenue of$5.0 million generated in the first quarter of fiscal year 2009.
  • First quarter fiscal year 2010 sales from the Company’s coal group increased 962% to $16.2 million, or 78.2% of total sales, compared to $1.5 million, or 30.5% of total sales in the same period in fiscal year 2009.
  • Net income in the first quarter of fiscal year 2010 totaled approximately $4.0 million, or $0.09 per share, compared to a loss of approximately $0.5 million, or $0.01 per share in the first quarter of fiscal year 2009.
  • Cash and cash equivalents totaled $3.7 million on February 28, 2010 compared to $5.1 million on November 30, 2009. The Company had total stockholders’ equity of $37.3 million, with total assets of $85.9 million versus total liabilities of $48.6 million on February 28, 2010.

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

Posted in China | Comments Off on Chinese Small-Cap Company Feature: China Energy Corp

Chinese Small-Cap Company Feature: Sinobiopharma

Posted by AGORACOM at 9:30 AM on Monday, April 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

Sinobiopharma (OTC.BB:SNBP)

Snbp

Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world’s fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company’s current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.

On April 19th 2010, the Company nnounced its financial results for the third quarter ended February 28, 2010.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

  • — Total revenue increased 145% year-over-year to approximately $2.0 million from $0.8 million in the comparable period of 2009.
  • Gross margin increased 172% year-over-year to approximately $1.6 million, or 81% of sales from $0.6 million, or 73% of sales for the same period of 2009.
  • Operating income increased $1.8 million to approximately $1.0 million from a loss of $0.8 million for the same period of 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

Posted in China | Comments Off on Chinese Small-Cap Company Feature: Sinobiopharma

AGORACOM to Display Partial IP Addresses Of All Posts As Of April 26, 2010

Posted by AGORACOM at 12:45 PM on Friday, April 16th, 2010

Dear Members,

We are pleased to announce that AGORACOM will begin displaying a partial IP address of all posts made on and after Monday, April 26, 2010. The measure has been introduced in order to provide our community with greater transparency with respect to posts on AGORACOM.  As a result of this new measure, members will be able to view other members who may be using the same IP address with just one click – and report any suspicious activity via the AGORACOM violations system.

HOW IT WORKS – PRIVACY INTACT

We want to emphasize that only partial IP addresses will be displayed in order to maintain the privacy of our members.  Much like receipts printed out after making a purchase at a restaurant, only part of the IP address will be visible to the public in order to maintain the privacy of all members.

For example, an IP address is comprised of four sets of numbers and looks like this: 252.234.99.23. When displayed on AGORACOM, the first two sets of numbers will be concealed in order to keep your location/geographic information private.  As such, the IP address 252.234.99.23 will be publicly displayed as XXX.XXX.99.23 to insure your privacy.

HOW IT WORKS – TRANSPARENCY

Using the above IP as an example, members that are suspicious of a particular member’s posting will be able to click on the displayed IP address XXX.XXX.99.23.  The AGORACOM system, which keeps track of the full IP address in our back end, will automatically display any other members that share the full IP address.  A match does not necessarily mean a violation has occurred but it will allow members to quickly and easily compare the posts of members sharing an IP address for potential multiple alias violations.  If a member suspects a multiple alias violation, they can then easily report it via our “Report Violation” system.

We want to thank-you for continuing to make AGORACOM the best small-cap community on the web and look forward to any questions and comments you may have pertaining to our new IP address initiative.

Regards,
George, Paul et al

Posted in AGORACOM News And Events, All Recent Posts | 10 Comments »

ChinaSecurities.com Small-Cap Company Feature: China New Energy

Posted by AGORACOM at 9:32 AM on Friday, April 16th, 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 New Energy – OTC.BB:CNER

Cner

China New Energy Group Company (“China New Energy” or the “Company”) is a vertically integrated natural gas company engaged in the development of natural gas distribution networks, and the distribution of natural gas to residential, industrial, and commercial users in small and medium sized cities in China. The Company generates revenues primarily from the connection fees it charges its customers for interconnecting to pipelines in its natural gas distribution networks, and fees for natural gas usage.

On April 16th, 2010, the Company announced its financial results for the twelve months endedDecember 31, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

Financial highlights of 2009 fiscal year are:

— Revenue increased 114.4% to $11.8 million compared to 2008
— Gross profit increased 139.8% to $8.6 million
— Gross margin increased 780 basis points to 73.5%
— Operating income increased 214.1% to $4.9 million
— Operating margin increased to 42.0% from 28.7%
— Net income from continuing operations was $6.8 million, or $0.04 per  diluted share, compared to a net loss from continuing operations of
$1.6 million, or ($0.09) per diluted share, last year
— Adjusted net income from continuing operations, which excludes the   non-cash impact of the change in fair value of derivative financial
instruments, was $3.2 million, or $0.02 per diluted share, up 247.1%  from adjusted net income of $0.9 million, or $0.01 per share, last
year(*)

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIESWe’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

Posted in China | Comments Off on ChinaSecurities.com Small-Cap Company Feature: China New Energy

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