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ChinaSecurities.com Small-Cap Company Feature: KHD Humboldt Wedag International Ltd.

Posted by AGORACOM at 9:30 AM on Friday, March 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

KHD Humboldt Wedag International Ltd (NYSE:KHD)

Khd - header

KHD Humboldt Wedag International Ltd. (“KHD”) announced in the first quarter of 2010 that it intends to restructure KHD into two distinct legal entities through the distribution to KHD’s shareholders, on a pro rata basis, of approximately 26 percent of the shares of its subsidiary, KHD Humboldt Wedag International (Deutschland) AG (the “Arrangement”).

And on March 26th, 2010, Humboldt announced results for the fourth quarter and year ended December 31, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

  • Revenues in the fourth quarter of 2009 were $210.2 million, an increase of 41.8 percent compared with the third quarter of 2009
  • Gross profit, excluding the impact of terminated contracts, was$48.1 million
  • KHD’s balance sheet remains strong. As of December 31, 2009, our cash and cash equivalents increased to$420.6 million (as compared to $409.1 million at the end of 2008)

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

ChinaSecurities.com Small-Cap Company Feature: China Automotive Systems

Posted by AGORACOM at 9:30 AM on Thursday, March 25th, 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 Automotive Systems (NASDAQ:CAAS)

Caas - header

Based in Hubei Province, People’s Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through nine Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles.

On March 25th 2010, CAAS reported 119% Net Sales Increase and 1,200% Net Income Growth for the Fourth Quarter 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Fourth Quarter 2009 Highlights
— Net sales increased 118.9% YoY to a record $83.8 million;
— Gross margin increased to 29% from 28% in Q4 2008 and 27% in Q3 2009;
— Net income surged 1,199.5% YoY from $0.5 million to $6.5 million;
diluted EPS was $0.21;
— Cash and equivalents were $43.5 million at December 31, 2009.

Fiscal Year 2009 Highlights
— Net sales rose by 56.6% YoY to a record $255.6 million;
— Net income grew 88.3% YoY to $23.4 million; diluted EPS was $0.78;
— Net cash flow from operations was $35.0 million;
— Free cash flow was $17.5 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

ChinaSecurities.com Small-Cap Company Feature: Puda Coal

Posted by AGORACOM at 9:30 AM on Wednesday, March 24th, 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

Puda Coal (NYSEAmex:PUDA)

Pudc - header

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining, as a consolidator and acquirer of coal mines in Shanxi Province.

On March 24th 2010, Puda Coal announced its announced its 2009 fourth quarter and full year financial results.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

Fourth Quarter 2009 Highlights
— Fourth quarter revenue totaled $60.2 million, down 6.6% year-over-year
but up 7.4% from $56.1 million in the third quarter of 2009
— Gross profit was $5.3 million, down 11.5% year-over-year and down 1.2%
from $5.4 million in the third quarter of 2009
— Operating income totaled $4.9 million, up 8.0% year-over-year, and up
20.9% from $4.0 million in the third quarter of 2009
— Net income was $2.3 million or $0.14 per fully diluted share, as
compared to $3.4 million, or $0.22 per fully diluted share, in the
fourth quarter of 2008 and a net loss of $0.6 million, or $0.04 per
fully diluted share, in the third quarter of 2009
— Excluding the $1.5 million in non-cash expense related to the fair
value loss of derivative warrants, adjusted net income was $3.7 million,
or $0.23 per fully diluted share, as compared to $3.3 million, or $0.22
per fully diluted share, in the same period last year and $2.8 million,
or $0.18 per fully diluted share, in the third quarter of 2009
— Sales of cleaned coal totaled 535,000 metric tons (MT), down 0.6% year
over year
— Average selling price of cleaned coal was $113 per MT in the fourth
quarters of 2009 and 2008.

Full Year 2009 Highlights
— Net revenue was $214.1 million, down 11.7% from 2008
— Gross profit totaled $18.2 million, down 40.1% from 2008
— Operating income was $14.5 million, down 41.7% from 2008
— Net income totaled $5.5 million, or $0.36 per fully diluted share, down
67.9%, as compared to $17.1 million, or $1.12 per fully diluted share
in 2008
— Excluding the $5.0 million in non-cash expense related to the fair
value loss of derivative securities, adjusted net income was $10.5
million, or $0.68 per diluted share, as compared to $16.7 million, or
$1.09 per diluted share from 2008
— Sales of cleaned coal reached 1.9 million metric tons, down 17.6% from
2008
— Average selling price of cleaned coal increased 7.8% to $111 per MT in
2009, as compared to $103 per MT in 2008 (after adjusting for exchange
rate differences)

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

Chinese Small-Cap Company Feature: China Yida Holdings Reports Big Top and Bottom Line Growth

Posted by AGORACOM at 9:30 AM on Tuesday, March 23rd, 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 Yida Holding Co. (NASDAQ:CNYD)

Cyid

China Yida Holding Co. is a leading diversified entertainment enterprise focused on China’s fast-growing media and tourism industries and headquartered in Fuzhou City, Fujian province of China. The Company’s media business provides operations management services; including channel, column and advertisement management for television station, presently the Fujian Education Television Station.

On March 23rd, Yida nnounced financial results for the fourth quarter and fiscal year ended December 31, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

Fourth Quarter 2009 Highlights
— Total net revenue increased 58.1% to $14.5 million, compared to $9.2
million in the fourth quarter of 2008
— Net revenue from the tourism business increased 112.5% year over year
to $6.0 million, with a gross margin of 60.2%
— Net revenue from the media business increased 34.2% year over year to
$8.5 million, with a gross margin of 91.1%
— Gross profit grew 61.7% to $11.4 million, compared to $7.0 million in
the same period last year
— Operating income grew 97.9% to $9.6 million, compared to $4.9 million
in the fourth quarter of 2008
— Net income increased 27.5% to $5.9 million, compared to $4.7 million in
the same period last year
— Fully diluted EPS was $0.34 per share, compared to $0.27 in the fourth
quarter of 2008

Full Year 2009 Highlights
— Total net revenue increased 67.4% to $51.2 million, compared to $30.6
million in 2008
— Net revenue from the tourism business increased 170.7% year over year
to $20.0 million, with a gross margin of 79.5%
— Net revenue from the media business increased 35.2% year over year to
$31.5 million, with a gross margin of 79.2%
— Gross profit grew 77.4% to $40.6 million, compared to $22.9 million in
2008
— Operating income grew 81.1% to $34.4 million, compared to $19.0 million
in 2008
— Net income increased 39.4% to $25.5 million, compared to $18.3 million
in 2008
— Fully diluted EPS was $1.47 per share, compared to $1.27 in 2008
— Re-opened Hua’An Tulou Cluster including Shangping Tulou
— Entered into a six-year exclusive agreement with China’s Railway Media
Center to create “Journey through China on the Train” infomercial
programs

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

Chinese Small-Cap Company Feature: China Transinfo

Posted by AGORACOM at 9:30 AM on Monday, March 22nd, 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 Transinfo (NASDAQ:CTFO)

Ctfo - header

China TransInfo, through its affiliate, China TransInfo Technology Group Co., Ltd., (the “Group Company”) and the Group Company’s PRC operating subsidiaries, is primarily focused on providing transportation information services and comprehensive solutions based on GIS technologies. The Company aims to become the largest transportation information products and comprehensive solutions provider, as well as the largest real time transportation information platform operator and provider in China. In addition, the Company is developing its transportation system to include Electronic Toll Collection (ETC) technology.

On March 22nd 2010, the Company reported its unaudited financial results for the fourth quarter and year ended December 31, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Fourth Quarter 2009 Highlights
— Revenue increased 166.1% year-over-year to $28.4 million
— Gross profit expanded 64.9% year-over-year to $10.0 million
— Operating income grew 26.1% year-over-year to $5.1 million
— Adjusted net income increased 22.3% year-over-year to $5.1 million, or
$0.23 per fully diluted share

Fiscal 2009 Highlights
— Revenue increased 116.8% year-over-year to a record $63.7 million
— Gross profit expanded 53.8% year-over-year to $25.4 million
— Operating income grew 20.0% year-over-year to $13.7 million
— Adjusted net income increased 19.7% to $13.6 million, or $0.60 per
fully diluted share
— As of December 31, 2009, cash and cash equivalents totaled $27.4
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

ChinaSecurities.com Small-Cap Company Feature: China Sky One Medical

Posted by AGORACOM at 9:30 AM on Wednesday, March 17th, 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 Sky One Medical (NASDAQ: CSKI)

Cski

China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company (“TDR”), Harbin First Bio-Engineering Company Limited (“First”), Heilongjiang Tianlong Pharmaceutical, Inc.

On March 17th, 2010, the Company announced financial results for the fourth quarter and fiscal year ended December 31, 2009. The Company also announced its earnings guidance for full year 2010.

Fourth Quarter 2009 Highlights

— Total revenues increased 15.0% year-over-year to $29.9 million

— Gross profit rose 18.5% to $22.9 million

— Operating income increased 1.8% to $9.1 million

— Net income decreased 23.6% year-over-year to $5.3 million, or $0.32 per diluted share

Full Year 2009 Highlights

— Total revenues increased 41.7% to $130.1 million, in-line with management guidance

— Gross profit grew 41.8% to $98.4 million

— Operating income rose 29.7% to $46.3 million

— Net income increased 19.4% to $34.5 million, or $2.07 per diluted share

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

Notes: China Management Forum At ROTH Capital OC Growth Conference 2010

Posted by AGORACOM at 11:01 AM on Tuesday, March 16th, 2010

Good morning to you all. I’m sitting in on the China Management Forum here at the ROTH Capital OC Growth Conference.  Panel being led by Jonathan Mork and includes 6 important players in the space.  I’ll refer to them below as they make statements.

Bob Stephenson (ROTH Capital): Universe of buyers of Chinese stocks has grown substantially this past year.  Financial crisis created an environment in which investors preferred registered securities (i.e. public offerings) vs. PIPES financing.  Those public offerings broadened the base of potential investors. Investors prefer public offerings because they received free trading stock.

Another factor was China’s growth.  Many companies remained strong through the financial crisis, which further attracted investors that came off the sidelines and were looking for cash flow and earnings.

Jonathan Mork (ROTH Capital): Public offerings are significantly different from PIPEs.  Going to cover some of the major differences.

Mitch Nussbaum (Loeb & Loeb): Issuers that have graduated to a senior exchange, public for a year and market cap greater than $75 million, can file an S3. S3 provides flexibility that S1 does not.  It can be filed but not go effective right away until you are ready for a public offering or take down money.

Louis Bevilacqua (Pillsbury Law): Amount of due diligence in a public offering or “registered direct” surprises most companies.  One of the reasons for DD in an underwritten deal is “due diligence defense” the underwriter wants to rely on.  It’s an investment.  Done once and correctly, they can simply continue to update and be ready to quickly move in the future.

Eddie Wong (Friedman LLP): In almost every IPO we audit, underwriter requests the auditor for a “comfort letter”.  To provide that, auditor needs to make sure the underwriter has undertaken their own due diligence.

Jonathan Mork (ROTH Capital): Unfortunately, what we see a lot is that companies are not putting all the pieces in place so the banker, underwriter, auditors and legal can get their work done.  Often, companies will file a shelf and expect the process to be complete in a week.  In reality, it takes about a month.  As such, companies need to prepare more and adjust their expectations.

Brandi Piacente (Piacente Group): After this entire process, everybody is tired and very little time is given to the communications component.  90% of stocks in the small-cap universe get sold on deliverables promised by CEO’s. 2 important components are the message and perception. With respect to the message. Training and polish is critical prior to staff heading out on a road show.

John Ma (ROTH Capital): Quite often, institutional investors want to speak with research analysts prior to making their investments.  They not only want to know their opinion, they also want to know how closely the analyst tracks the company and speaks with management.

Jonathan Mork (ROTH Capital): Switching GearsA lot of bankers are pitching companies on different financing vehicles. Problem is they are making them all appear the same and taking advantage of new management teams.  Often pitch speed at the expense of due diligence.  At the end, this hurts companies as big investors won’t invest in deals in which due diligence has not been completed.

Mitch Nussbaum (Loeb & Loeb): Clients focus too much on how fast and how cheap they can get a deal done.  It is tempting to tell investors what they want to hear – but responsible players tell clients the truth at the risk of disappointing them.  You have to ask yourself – what is the real cost of the deal?  To determine that, you have to determine the actual costs and benefits.  The more you hurt yourself, the greater the cost in the long-run.

Eddie Wong (Friedman LLP): For example, if a banker tells you they can get $.25 more from investors – but adds warrants onto the deal – you actually hurt yourself because it is a non-cash expense that hits your bottom line, translating into lower P/E and lower valuation.

Convertible instruments may have hidden costs subsequent to their issuance.  Specifically, they may have to be treated as a derivative that needs to be valued every quarter, adding further accounting expense.

Brandi Piacente (Piacente Group): The quality of these decisions will dramatically impact your after-market support from the investment community.  A poor structure can negatively impact the perception from the street.

John Ma (ROTH Capital): If you are a small-cap company, keep your capital structure simple.  Too many warrants and options give investors pause.  Some convertible instruments can make investors particularly weary.

Jonathan Mork (ROTH Capital): Warrants give the street “fits” because it makes valuing the company that much harder.  Warrants are often the mark of a weaker company and a weak banker that had to throw them in to sweeten the deal for investors.

Byron Roth (ROTH Capital): Financing gets easier and easier as you move up the food chain, as long as you do the work in your early stages.  Don’t look at the process as dire, expensive or lengthy.  Look at it as graduating to the next step in your growth.

END

FYI, here is a shot of the view from the panel.  It sure makes getting up at 6AM a lot easier 🙂

ChinaSecurities.com Small-Cap Company Feature: Ever Glory International Group, Inc.

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

TODAY’S FEATURED COMPANY

Ever Glory International Group, Inc. (NYSEAmex: EVK)

Evk - header

Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel company listed on the American Stock Exchange (now called NYSE Amex), and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. The Company maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as “LA GO GO.”

On March 16th, the Company reported its financial results for the year ended December 31, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

— Gross profit increased 15.1% to $18.3 million
— Gross margin increased 410 basis points YoY to 20.4%

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

Chinese Small-Cap Company Feature: China Housing & Land Development

Posted by AGORACOM at 9:30 AM on Monday, March 15th, 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 Housing & Land Development (NASDAQ:CHLN)

Chln - header

Since 1992, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China.

On November 11th 2009, the Company announced its unaudited financial results for the third quarter ended September 30, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

— Total revenues increased 227% to $86.6 million from $26.5 million in
2008.
— Total gross floor area (“GFA”) sales were 145,529 sq. meters, compared
to 60,593 sq. meters in 2008, representing a 140% increase.
— Gross profit increased 374% to $23.7 million from $5.0 million in 2008.
Gross margin increased to 27.3% compared to 18.9% in 2008.
— SG&A expenses as a percentage of total revenue declined to 10.6% from
32.1% in 2008.
— Operating income was $8.5 million, compared to an operating loss of
($9.8 million) in 2008.
— Net income attributable to common shares decreased 71% to $2.5 million
from $8.8 million in 2008. Non-GAAP net income, which excluded a $7.6
million non-cash losses associated with the revaluation of derivatives
and warrants, was $10.1 million in 2009 compared to non-GAAP net income
of $0.8 million in 2008, which excluded a $8.1 million gain associated
with the revaluation of derivatives and warrants, representing a 14.6%
increase.
— Diluted net income per share attributable to common shareholders was
$0.08, compared to $0.28 in 2008. Excluding $0.24 of non-cash losses
associated with the revaluation of derivatives and warrants in 2009 and
$0.27 in non-cash gains in 2008, diluted earnings per share would have
been $0.32 and $0.03 for each respective period.

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

ChinaSecurities.com Small-Cap Company Feature: China Natural Gas

Posted by AGORACOM at 9:30 AM on Thursday, March 11th, 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 Natural Gas (Nasdaq:CHNG)

Chng

China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China’sShaanxi and Henan Provinces.

On March 10th,  2010,  the Company announced its financial results for the fourth quarter and full fiscal year ended December 31, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

FOURTH QUARTER 2009 HIGHLIGHTS

  • Revenue in the fourth quarter of 2009 increased 18% to $21.67 million from $18.40 million in the fourth quarter of 2008
  • Gross profit in the fourth quarter of 2009 expanded 11% to $10.53 million, from $9.49 million in the prior year’s same period
  • Gross margin in the fourth quarter of 2009 was 49%, compared to 52% a year ago
  • Operating income in the fourth quarter of 2009 was $6.77 million, an increase of 17% year-over-year, from$5.77 million in the prior year’s period.

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