AGORACOM Small-cap Investor Relations Blog

Good afternoon to you all.  I’m at the ROTH OC Conference waiting for the China Chairman’s Workshop to begin and there’s a great slide up with details about China based – US listed companies that I’d like to share with you.

• There are approximately 500 companies listed in the US with major operations in China or Hong Kong

Out of the 500 companies:

• Over 90% initially began trading on the OTCBB…Today
  • 53 listed on NYSE
  • 95 listed on Nasdaq
  • 17 listed on AMEX
  • 229 listed on OTCBB
  • 108 listed on Pink Sheets
• 261 have trailing P/E data
• 33% have P/E < 3x
• 38% have P/E < 4x
• 289 with price movement data dropped 64% on average between 1/1/08 and 1/16/09
• 431 have last 3-month daily trading volume data, 44% have trading volume < 20k, 24%with trading volume < 100k, 32% with trading volume between 20k and 100k.

Hope you find this data and information to be helpful.  Stay tuned for more info as I’ll be blogging the workshop.

Regards,
George

The Roth Capital Partners China/Vegas Conference ended on Friday but it has been such a whirlwind since then that today is my first opportunity to provide post-conference commentary. AGORACOM was a proud first-time sponsor of the event. As readers of the AGORACOM Blog and viewers of AGORACOM TV know, we are very bullish on Chinese small-cap companies and believe they represent the buying opportunity of a lifetime.

In short, the conference was fantastic. Yes, both companies and delegates were disappointed in the state of the markets but the difference in China is that small-cap companies are simply growing at a slower rate – but they’re still growing.

Case in point, take a look at just some of the Chinese Small-Cap Stocks I blogged about in our China category. These companies are just blowing the doors off relative to most of their OTCBB peers. As such, the overall sentiment was positive and everyone feels very confident about growth in this space over the next 5 – 10 years. Expect to see a few more profiles go up in the next few days.

ORGANIZED AND EFFECTIVE FORMAT

With respect to mechanics of the conference, the Roth people put on a great show. Super organized when you consider they had to weave 1-on-1 meetings with company presentations.

What I really enjoyed and appreciated, amongst everything else, was the China Chairman’s Workshop on Day 1 in which Roth assembled all presenting companies, sponsors and industry experts for an interactive discussion about the industry’s state of affairs. This is a departure from most conferences that simply open an exhibit the floor and let the carnival begin. It showed me that Roth cared about real dialogue between all levels of the industry. It turned out to be very informative and helpful. Kudos for that.

JIM ROGERS PROVIDES KEYNOTE PRESENTATION

Driving the point home further is American citizen turned China Bull, Jim Rogers. im Rogers is the co-founder of the Quantum Fund along with Billionaire George Soros and subject of extensive coverage here on AGORACOM. I met him briefly during a book signing and joked about how he shouldn’t confuse me with Soros given how close our names are.

Jim gave an entertaining but compelling presentation on why investing in China today is like investing in the USA back in 1870. I actually posted many of his comments to AGORACOM Twitter via my cell phone. You can see those posts here.

The current market turmoil does nothing to change our sentiment.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese Small 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]  Many Small Cap Chinese Companies are listing in the US (OTCBB, AMEX and graduating higher) 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.

AGORACOM AS A STARTING POINT FOR CHINESE SMALL CAP COMPANIES

In addition to the featured company below, you can refer to our China category for other featured Chinese Small-Cap Companies, or view our extensive coverage of them on AGORACOM TV .  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.

TODAY’S FEATURED COMPANY

China Energy Recovery, Inc. (OTCBB: CGYV)

A leader in China’s waste-heat recovery sector of the alternative energy industry, recently announced financial results for the nine months and the third fiscal quarter ended September 30, 2008.

AGORACOM TV Segment.

Financial Highlights for the Nine Months Ended September 30, 2008

• Revenue increased to $16.0 million, up from $7.5 million in the corresponding period in 2007, an increase of 112.0%. The increase in revenue is due to increased sales volume of energy recovery systems and services of the company as a result of increasing market demand.

• Gross profit increased by 411.4% to $3.5 million, representing a 22.0% gross margin, compared with gross profit of $0.7 million, or a 9.1% gross margin, for the same period in 2007. The increase in gross profit is mainly attributable to increased licensing and design service revenue with higher margins and the company’s efforts in adjusting contract prices in coping with orders of increasing size and the increased prices of raw materials in 2008.

• Net income increased to $0.8 million, as compared to a net loss of $0.2 million for the same period in 2007.

(more…)

As many of you know, we are very bullish on the long-term future of Chinese Small 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]  Many Small Cap Chinese Companies are listing in the US (OTCBB, AMEX and graduating higher) 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.

AGORACOM AS A STARTING POINT FOR CHINESE SMALL CAP COMPANIES

In addition to the featured company below, you can refer to our China category for other featured Chinese Small-Cap Companies, or view our extensive coverage of them on AGORACOM TV .  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.

TODAY’S FEATURED COMPANY

Winland Online Shipping Holdings Corporation (OTCBB:WLOL.OB)

A PRC-based global shipping company which also owns and operates China’s largest shipping website portal “Shipping Online” (www.sol.com.cn), recently reported continued substantial growth in its operations, despite significantly increased fuel costs and the effects of the global financial crisis.

Winland has a fleet of 13 Company-owned vessels, mainly in the Supramax and Handysize category, engaged in international bulk cargo transportation.

AGORACOM TV Segment.

Third quarter ended September 30, 2008:

• Revenues climbed 37.0% to $22,790,122 compared with $16,629,210 in the same period last year

• Net income in the quarter grew 40.8% from $3,763,103 in the 2007 third quarter to $5,298,476 in the third quarter of 2008.

• Reflecting an increased number of shares outstanding, earnings per share on a basic and fully diluted basis were $0.04 in the 2008 quarter compared with $0.04 in the same period last year.
• Cash and cash equivalents to $5,556,743 as of September 30, 2008 compared with $3,786,766 a year earlier, and an increase in working capital as of the same date to $4.0 million as compared with a working capital deficiency of $16.4 million at December 31, 2007.

(more…)

As many of you know, we are very bullish on the long-term future of Chinese Small 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]  Many Small Cap Chinese Companies are listing in the US (OTCBB, AMEX and graduating higher) 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.

AGORACOM AS A STARTING POINT FOR CHINESE SMALL CAP COMPANIES

In addition to the featured company below, you can refer to our China category for other featured Chinese Small-Cap Companies, or view our extensive coverage of them on AGORACOM TV .  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.

TODAY’S FEATURED COMPANY

Sancon Resources Recovery, Inc. (OTCBB:SRRY)

Sancon is a rapidly growing environmental services and waste recycling company, with operations in both China and Australia.  The Company recently announced record third quarter results for the period ended September 30, 2008, which were covered on AGORACOM TV.  Highlights are as follows:

For Quarter Ended September 30, 2008

• The Company generated record 2008 third quarter revenue of $3.88 million, a 189.3% increase compared to $1.34 million in the 2007 third quarter. The quarterly revenue was the highest in the Company’s history

• Gross profit increased to $1.79 million compared to $0.42 million in the year earlier period.

• Gross margin increased from 31.6% in the 2007 third quarter to 46.1% in the 2008 third quarter due to increased sales of higher margin services in China.

• Net income was a record $0.46 million, or $0.02 per diluted share, compared to net income of $0.08 million, or net income of $0.00 per share in the year ago period. This was the Company’s third consecutive quarter of profitability.

(more…)

With our sponsorship of the Roth China/Vegas Conference set to begin, I’m taking this opportunity to highlight a couple more Chinese Small Cap Companies and their most recent quarterly results.  As many of you know, we are very bullish on the long-term future of Chinese Small 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]  Many Small Cap Chinese Companies are listing in the US (OTCBB, AMEX and graduating higher) 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.

AGORACOM AS A STARTING POINT FOR CHINESE SMALL CAP COMPANIES

If you are looking for successful opportunities and examples in this sector, make AGORACOM your starting point as we have covered them extensively on AGORACOM TV and this blog’s China category.

Given our sponsorship of the Roth China/Vegas Conference, you can expect to see significantly more coverage of Chinese Small Cap Companies. Look for detailed coverage of these 3 companies to be posted later tonight.

Sancon Resources Recovery, Inc. (OTCBB:SRRY)

Sancon is a rapidly growing environmental services and waste recycling company, with operations in both China and Australia.  The Company recently announced record third quarter results for the period ended September 30, 2008, which were covered on AGORACOM TV and in this blog post.

Winland Online Shipping Holdings Corporation (OTCBB:WLOL.OB)

A PRC-based global shipping company which also owns and operates China’s largest shipping website portal “Shipping Online” (www.sol.com.cn), recently reported continued substantial growth in its operations, despite significantly increased fuel costs and the effects of the global financial crisis.

Winland has a fleet of 13 Company-owned vessels, mainly in the Supramax and Handysize category, engaged in international bulk cargo transportation.

The company issued significant quarterly results which were covered in this blog post and thisAGORACOM TV Segment.

China Energy Recovery, Inc. (OTCBB: CGYV)

A leader in China’s waste-heat recovery sector of the alternative energy industry, recently announced financial results for the nine months and the third fiscal quarter ended September 30, 2008.  Millions in revenue and about $800,000 in profit for the first 9-months.

AGORACOM TV Segment.

END