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

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

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 America Holdings Inc. (OTCBB: CAAH)

China America Holdings, Inc., is a holding company which owns a 56% stake in Shanghai Aohong Chemical Co., Ltd. based in Shanghai, China. Shanghai Aohong Chemical Co., Ltd. is a distributor of assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, and a manufacturer of steel non-refillable cylinders.

On April 16th, the Company announced their results for 2008.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenue: $35 million, that’s more than a 100% growth over $16.2 million in 2007.
• Income from operations: $860,000. That’s WAY up from a loss of ($406,000) in the last Fiscal Year.
• Net loss for the year: ($561,000), that compares to a loss of ($1.1 million) last year so they’ve got a dramatic improvement on their bottom line, on the income from operations and on the revenue side.
• Cash and cash equivalents of approximately $2.23 million but that seems more than enough for a holding company.

MY COMMENTS:

One thing about this company, a ($561,000) loss translated to $0.00 per share so that probably does mean we have a high share count here. The company’s trading at 0.018 so always go take a look at that and make sure the share count isn’t too great.

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

New Oriental Education and Technology Group Inc – (NYSE: EDU)

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.

On April 21st, the Company announced their results for the third fiscal quarter ended February 28, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Total net revenues increased by 36.1% year-over-year to US$65.4 million.
• Non-GAAP increased by 4.3% year-over-year to US$14.5 million however, if you go according to GAAP, the net income decreased 10% year-over-year.
• NON-GAAP from income operations increased 2.4% however once again, if you look at the GAAP income, it actually decreased by 14.7% year-over-year to US$8.7 million

.

MY COMMENTS:

I’d imagine this is going to be a growing field for the next several years. The Company closed on April 20th at $51.25

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 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 April 20th, the company announced record sales and earnings for 2008.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues up 7.67% to $27.3 million.
• Gross profit up 36.41% to $6.7 million.
• Net income up 11.08% to $3.98 million
• However, they did have a one time non-cash deemed preferred stock dividend about $855,000 so that takes net income down to $3.13 million or $0.21 per share.

MY COMMENTS:

Great number when you consider the fact they closed on April 17th at 0.59.  You’ve got a company here trading at essentially 3 times earnings, representing excellent valuations

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