It has been over a month without any updates. I have not had any new good long term picks, that I consider undiscovered and worth mentioning here. But, I would like to provide an update on a few stocks, that have been mentioned on this blog before.
First of all, an update on my favorite stock of 2007 - Harbin Electric Inc. (HRBN):
Harbin Electric Inc. presented at Roth China Conference on November 29th, 2007. You can listen to the presentation, which also contains slides, from here -> http://www.wsw.com/webcast/roth14/hrbn/. There is really nothing new to report on this company. It just continues to be a great performer in 2007.
This is the my original post on HRBN from January of 2007: http://undiscoveredstocks.blogspot.com/2007/01/hrbn-harbin-electric.html. Back then, the stock was trading on OTC:BB at $8, practically without any volume. What do we have today (less than a year later)? It closed at all time high of $22.54 on pretty good volume for this low float stock. (nearly 250k traded). The volume has been on a rise in the past week, as the stock began its move towards new highs. So far, the total gain on this stock is roughly 181% so far this year, and I still believe it has a great potential in 2008 and beyond.
Quick update on what I believe might become the stock of 2008 - Asia Automotive Acquisition Corp (AAAC.OB, AAACW.OB):
There is a big investor (Jeff Feinberg), that's been buying the shares of AAAC.OB almost on daily basis for the past month and more, and has now accumulated 20% of all O/S. All filings are here: http://www.sec.gov/cgi-bin/browse-edgar?company=asia+automotive&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany.
You can also check that he has 20% of O/S from here:
http://www.sec.gov/Archives/edgar/data/1088219/000091957407005742/d835788_13-d.txt
Just to give you an idea of what his last investment did - take a look at the CSCA.OB -> he has been accumulating this one as well, and, according to the latest filings now has over 38% of O/S. The stock (CSCA.OB) has moved from $7's to over $13's in a short peroid of time and has been steady at that level.
For more info on AAAC.OB, please go back to my archives for October and November of 2007, and read a summary of my DD from October that was published on SeekingAlpha -> http://www.seekingalpha.com/article/51672-eye-on-asia-automotive-acquisition-corp.
Finally, there is another stock that is worth mentioning here, as I believe this one could be a great long term hold. It does have a decent volume, so I can't say it's undiscovered, but at the same time I believe it has not reached "Discovered" level either. The company is China North East Petroleum (CNEH.OB). I will provide a small summary on this a little later tonight or tomorrow.
Good luck and remember - always do your own DD.
Wednesday, December 12, 2007
Monday, November 5, 2007
Update on Asia Automotive Acquisition (AAAC.OB)
The company announces financial results of merger partner:
Asia Automotive Acquisition Corporation Announces Unaudited Financial Results of Merger Partner for the Three and Nine Months Ended September 30, 2007
Monday November 5, 8:00 am ET
Q3 Revenue Increases 43% to $21.8 Million from $15.2 Million
Q3 Net Income Increases 39% to $2.5 Million from $1.8 Million at 9/30/2007
http://biz.yahoo.com/prnews/071105/clm059.html?.v=101
NEW YORK, Nov. 5 /PRNewswire-FirstCall/ -- Asia Automotive Acquisition Corporation (OTC Bulletin Board: AAAC - News, AAACU - News, AAACW - News; "AAAC"), announced today the unaudited financial results for the three and nine months ended September 30, 2007 for its merger partner, Hunan Tongxin Enterprise Co., Ltd. ("Tongxin") (see attached table). As previously announced on July 25, 2007, AAAC signed an Equity Acquisition Agreement with Tongxin pursuant to which Tongxin and AAAC will merge into a newly created British Virgin Islands company, Tongxin International, Ltd.
For the three months ended September 30, 2007 Tongxin had:
* Revenue of approximately $21.8 million, an increase of 43% from $15.2
million for the same period in the prior year;
* Operating income of approximately $4.1 million, an increase of 41%
from $2.9 million for the same period in the prior year;
* Net income totaled approximately $2.5 million, an increase of 39% from
$1.8 million for the same period the prior year.
For the nine months ended September 30, 2007 Tongxin had:
* Net Income of $7.75 million, an increase of 102 % from $3.83 million
for the same period in the prior year. Net income for the current
period excludes one time costs of $230,000 for legal, accounting and
audit fees associated with the proposed transaction with AAAC.
* EBITDA of $14.6 million, or 23.2% of net revenues
p
Asia Automotive Acquisition Corporation Announces Unaudited Financial Results of Merger Partner for the Three and Nine Months Ended September 30, 2007
Monday November 5, 8:00 am ET
Q3 Revenue Increases 43% to $21.8 Million from $15.2 Million
Q3 Net Income Increases 39% to $2.5 Million from $1.8 Million at 9/30/2007
http://biz.yahoo.com/prnews/071105/clm059.html?.v=101
NEW YORK, Nov. 5 /PRNewswire-FirstCall/ -- Asia Automotive Acquisition Corporation (OTC Bulletin Board: AAAC - News, AAACU - News, AAACW - News; "AAAC"), announced today the unaudited financial results for the three and nine months ended September 30, 2007 for its merger partner, Hunan Tongxin Enterprise Co., Ltd. ("Tongxin") (see attached table). As previously announced on July 25, 2007, AAAC signed an Equity Acquisition Agreement with Tongxin pursuant to which Tongxin and AAAC will merge into a newly created British Virgin Islands company, Tongxin International, Ltd.
For the three months ended September 30, 2007 Tongxin had:
* Revenue of approximately $21.8 million, an increase of 43% from $15.2
million for the same period in the prior year;
* Operating income of approximately $4.1 million, an increase of 41%
from $2.9 million for the same period in the prior year;
* Net income totaled approximately $2.5 million, an increase of 39% from
$1.8 million for the same period the prior year.
For the nine months ended September 30, 2007 Tongxin had:
* Net Income of $7.75 million, an increase of 102 % from $3.83 million
for the same period in the prior year. Net income for the current
period excludes one time costs of $230,000 for legal, accounting and
audit fees associated with the proposed transaction with AAAC.
* EBITDA of $14.6 million, or 23.2% of net revenues
p
Wednesday, October 31, 2007
Update on Harbin Electric (HRBN)
Here are the News that are not available on the wires yet - only for subscribers to AutomotiveWorld:
http://www.automotiveworld.com/ACM/content.asp?contentid=64520
China: Harbin Electric secures supply order from Intier Automotive
By Automotive World staff writer (SS)
31 October, 2007
Source: Automotive World
Harbin Electric has secured a five-year contract to supply micro motors to North American automotive component manufacturer Intier Automotive, reports Automotive News China. Intier will in turn supply the micro motors to Chrysler LLC.
-------------
This is very big. Let's see a PR on this with more details shorly....
http://www.automotiveworld.com/ACM/content.asp?contentid=64520
China: Harbin Electric secures supply order from Intier Automotive
By Automotive World staff writer (SS)
31 October, 2007
Source: Automotive World
Harbin Electric has secured a five-year contract to supply micro motors to North American automotive component manufacturer Intier Automotive, reports Automotive News China. Intier will in turn supply the micro motors to Chrysler LLC.
-------------
This is very big. Let's see a PR on this with more details shorly....
Monday, October 29, 2007
Last Update on CEUC.OB (now CAST)
CEUC.OB is now trading on Nasdaq as of today. New symbol is CAST. It had another massive gain today. Volume looks very good. It has now doubled from the lows and has been found by the masses. I will no longer provide any updates on this company, as it no longer satisfies my "undiscovered" condition.
Good luck!
Good luck!
Saturday, October 27, 2007
Another Update on Asia Automotive Acquisition (AAAC.OB)
Just wanted to show the Board of Directors and Executive Management at Close of Transaction:
William R. Herren, Director, Chairman of Tongxin International, Chief Executive Officer
- 35+ years automotive experience including both vehicle and component operations; including 15 years corporate finance
- Profit/loss responsibility for several Delphi business units
- Directed M&A activities resulting in over $250 million in investments in Asia in mid 90s
Rudy Wilson, Director, Chief Operating OFficer in Tongxin International
- 33+ years automotive experience including 3 years living and working in China
- Served on several Chinese joint venture boards in various director capacities
- Responsible for identifying growth opportunities for new Chinese JVs
Dr. David J. Brophy, Chief Financial Officer, Secretary
- A member of the Finance Faculty at the University of Michigan School of Business Administration from 1968 and Director of its Center for Venture Capital and Private Equity Finance since 1992
- Advisory and consultant activities in the public and private sector include such funds as Compass Technology Partners, Plymouth Ventures, and Bio-Star Ventures and various government agencies in the US, Australia and France
- He is a founding member of the editorial board of the Journal of Private Equity and the International Journal of Venture Capital
William Zielke, Director
- 25+ years automotive M&A experience including 14 years experience in the China automotive market
- Served on boards with supplier firms in China, Saudi Arabia, Mexico, Belgium and Korea
- Authored board training modules and conducted training
William A. Ebbert, Director
- Formerly Executive-in-Charge of Delphi Automotive Asia Operations
- 35+ years automotive experience in finance and planning
- Directed Delphi Corporate start-up activities in Asia Pacific
Pilar Abliac-Murillo, Director
- Director of Remy International Mexican manufacturing operaions
- 25+ automotive experience including assignments in Europe and North America
- Manufacturing and HR focuses assignments
Zhang Ruanxiang, Director, Chief Executive Officer of Hunan Tongxin, Vice Chairman of Tongxin International
- Founded Hunan Tongxin in 1984
- Has been recognized twice as one of the top 10 economic outstanding business executives and once as an excellent private enterpreneur in Hunan province.
- also the committee member of China Private Enterpreneur Association and premier vice president of Hunan Private Enterpreneur Soceity
Peng Weiwu, Director, Chief Operating Officer of Hunan Tongxin
- 20+ years with Tongxin helping to grow the company
- Responsible for improving Tongxin's production process and enhancing product development resulting in the development of 128 brand products and 9 product series in the past 22 years
- Recognized by the China in Institute of Technology in 2003 for developing Tongxin's "Thin Stamping Process and Design Theory in Vehicle Manufacturing Application"
Al Xing, Director
- Background in Mechanical Engineering
- 15+ years electronics software experience in both the uS and China
- Currently employed with IBM (Canada)
Xiao Tangbing, Director
- Background in business administration
- 30+ years experience in China's machinery and electronics controls industry
- Currently chairman and general manager of Changsha Machinery and Electronic Equipment, Inc.
William R. Herren, Director, Chairman of Tongxin International, Chief Executive Officer
- 35+ years automotive experience including both vehicle and component operations; including 15 years corporate finance
- Profit/loss responsibility for several Delphi business units
- Directed M&A activities resulting in over $250 million in investments in Asia in mid 90s
Rudy Wilson, Director, Chief Operating OFficer in Tongxin International
- 33+ years automotive experience including 3 years living and working in China
- Served on several Chinese joint venture boards in various director capacities
- Responsible for identifying growth opportunities for new Chinese JVs
Dr. David J. Brophy, Chief Financial Officer, Secretary
- A member of the Finance Faculty at the University of Michigan School of Business Administration from 1968 and Director of its Center for Venture Capital and Private Equity Finance since 1992
- Advisory and consultant activities in the public and private sector include such funds as Compass Technology Partners, Plymouth Ventures, and Bio-Star Ventures and various government agencies in the US, Australia and France
- He is a founding member of the editorial board of the Journal of Private Equity and the International Journal of Venture Capital
William Zielke, Director
- 25+ years automotive M&A experience including 14 years experience in the China automotive market
- Served on boards with supplier firms in China, Saudi Arabia, Mexico, Belgium and Korea
- Authored board training modules and conducted training
William A. Ebbert, Director
- Formerly Executive-in-Charge of Delphi Automotive Asia Operations
- 35+ years automotive experience in finance and planning
- Directed Delphi Corporate start-up activities in Asia Pacific
Pilar Abliac-Murillo, Director
- Director of Remy International Mexican manufacturing operaions
- 25+ automotive experience including assignments in Europe and North America
- Manufacturing and HR focuses assignments
Zhang Ruanxiang, Director, Chief Executive Officer of Hunan Tongxin, Vice Chairman of Tongxin International
- Founded Hunan Tongxin in 1984
- Has been recognized twice as one of the top 10 economic outstanding business executives and once as an excellent private enterpreneur in Hunan province.
- also the committee member of China Private Enterpreneur Association and premier vice president of Hunan Private Enterpreneur Soceity
Peng Weiwu, Director, Chief Operating Officer of Hunan Tongxin
- 20+ years with Tongxin helping to grow the company
- Responsible for improving Tongxin's production process and enhancing product development resulting in the development of 128 brand products and 9 product series in the past 22 years
- Recognized by the China in Institute of Technology in 2003 for developing Tongxin's "Thin Stamping Process and Design Theory in Vehicle Manufacturing Application"
Al Xing, Director
- Background in Mechanical Engineering
- 15+ years electronics software experience in both the uS and China
- Currently employed with IBM (Canada)
Xiao Tangbing, Director
- Background in business administration
- 30+ years experience in China's machinery and electronics controls industry
- Currently chairman and general manager of Changsha Machinery and Electronic Equipment, Inc.
Update on Asia Automotive Acquisition (AAAC.OB)
I would like to present an additional information on Asia Automotive Acquisition (AAAC.OB). For the most part, it is based on the proxy statement filed by the company one month ago. Here is the link:
http://www.sec.gov/Archives/edgar/data/1332552/000133255207000027/proxytest4.txt
Now, some important points from this proxy:
First, comparison to the other companies in the industry, according to the board:
Overall the Company examined 65 automotive supplier firms traded on United
States stock exchanges.Subsequently eight companies were selected based on
their single or dual focus technical competency which is similar to that
of Hunan Tongxin. Additionally, we analyzed gross and net Income margins
and revenue growth rates. The board then examined the forward price earnings
ratios of these companies. The median and mean forward price earnings ratios
for the eight companies were 17.7 and 22.4, respectively. The board used
this range of price earnings ratios as the most representative.
The board made several assumptions in deriving statistics about Hunan Tongxin
that were used solely for the purpose of management's determining a value of
Hunan Tongxin. Investors should not place any weight on these projections,
because any projection is subject to many assumptions, some or all of which
may not be correct or occur as assumed. The assumptions were for the
projection of net income for 2007. The net income assumption for fiscal year
2007 was $9.5 million. The projected net income for 2007 was determined to be
reasonable in light of the net income for 2006 of approximately $5.7 million,
and the level of existing and new contracts at the time the assessment was
made. The level of contracts has increased significantly from 2006 to 2007.
Hunan Tongxin has long-term debt of approximately $5.2 million and and cash
and marketable securities of approximately $5.9 million as of June 30, 2007
and it is assumed that it will not leverage the business going forward.
The starting point was to determine enterprise value of Hunan Tongxin, which
was derived by the following formula: enterprise value equals market
capitalization, plus long term debt, plus preferred equity, minus cash and
cash equivalents. Using this formula, the board of directors arrived at a
projected enterprise value for Hunan Tongxin of $169,100,000 for 2007. This
was derived using a market capitalization of $168,150,000 an amount
determined by taking the fair market comparable capitalization using an
implied market capitalization equal to a comparable price earnings ratio of
17.7 multiplied by the assumed earnings of Hunan Tongxin for 2007 of
$9,500,000. There is anticipated to be no additional long-term debt in 2007
over the existing $5,300,000 and no preferred equity issued and outstanding
in Hunan Tongxin. Cash and cash equivalents of Hunan Tongxin for 2007 were
assumed to be $5,900,000 resulting from Hunan Tongxin's ongoing operations.
Based on the assumed 6,380,250 shares that will be outstanding upon
completion of the Equity Acquisition, the Board computed a per share price
of $26.50, or approximately $19.06 above the redemption value of AAAC's
common stock (approximately $7.60). Stockholders should note that these
evaluation computations are not predictions of the actual market price of
AAAC either upon consummation of the transaction or at any time after that.
The AAAC board of directors believes because of the financial skills
and automotive background of all of its directors, it was qualified to
make this analysis itself and conclude that the acquisition of Hunan Tongxin
met this 80% test requirement without recourse to an independent source.
The entire AAAC board of directors is comprised of directors with extensive
experience in analyzing acquistion targets and assessing their future values.
AAAC officers William R. Herren and Rudy Wilson have been involved in
identifying and completing seven investment projects in China with over $250
million in direct investment while employed at General Motors. David J.Brophy,
leads the University of Michigan's Private Equity and Entrepreneurship Center
and brings considerable independent expertise in this area. Donald L. Runkle
brings experience from numerous global acquisitions during his tenure at
Delphi Automotive.
Now, the background of the company being acquired:
BACKGROUND
Hunan Tongxin is the largest independent Chinese supplier of Engineered
Vehicle Body Structures ("EVBS") capable of providing products for both
light and commercial vehicles in addition to designing, fabricating and
testing dies used to stamp automotive body panels. EVBS consists of
exterior body panels including doors, floor pans, hoods, side panels,
fenders. Hunan Tongxin also manufactures complete cab structures for
commercial vehicles. Hunan Tongxin's components must meet exacting
dimensions for fit and finish before they are assembled and finally
painted. These capabilities enable Hunan Tongxin to participate
effectively in all sectors of the Chinese automotive market including
light and commercial vehicles.
STRATEGY
Hunan Tongxin captured approximately 7% of the independent EVBS market
in 2005 and plans to increase its share to 20% by 2010. It anticipates
entering the North American and European collision parts aftermarket
based on what it perceives to be products that are comparable to those
of other automotive suppliers but selling at prices that will give it
a competitive advantage.
Hunan Tongxin's goal is to become one of the world's premier EVBS
companies.
The principal elements of its core business strategies are so
follows:
* Maintaining its leadership position in China's EVBS
* Enhancing the leadership position in die design and fabrication.
* Increasing value added content for cab assembly.
* Focusing on high-value EVBS design services
Since 2004 Hunan Tongxin had successfully expanded to the following
Southeast Asia exports markets:
* Vietnam EVBS market
* Cambodia EVBS market
More updates will come soon....
http://www.sec.gov/Archives/edgar/data/1332552/000133255207000027/proxytest4.txt
Now, some important points from this proxy:
First, comparison to the other companies in the industry, according to the board:
Overall the Company examined 65 automotive supplier firms traded on United
States stock exchanges.Subsequently eight companies were selected based on
their single or dual focus technical competency which is similar to that
of Hunan Tongxin. Additionally, we analyzed gross and net Income margins
and revenue growth rates. The board then examined the forward price earnings
ratios of these companies. The median and mean forward price earnings ratios
for the eight companies were 17.7 and 22.4, respectively. The board used
this range of price earnings ratios as the most representative.
The board made several assumptions in deriving statistics about Hunan Tongxin
that were used solely for the purpose of management's determining a value of
Hunan Tongxin. Investors should not place any weight on these projections,
because any projection is subject to many assumptions, some or all of which
may not be correct or occur as assumed. The assumptions were for the
projection of net income for 2007. The net income assumption for fiscal year
2007 was $9.5 million. The projected net income for 2007 was determined to be
reasonable in light of the net income for 2006 of approximately $5.7 million,
and the level of existing and new contracts at the time the assessment was
made. The level of contracts has increased significantly from 2006 to 2007.
Hunan Tongxin has long-term debt of approximately $5.2 million and and cash
and marketable securities of approximately $5.9 million as of June 30, 2007
and it is assumed that it will not leverage the business going forward.
The starting point was to determine enterprise value of Hunan Tongxin, which
was derived by the following formula: enterprise value equals market
capitalization, plus long term debt, plus preferred equity, minus cash and
cash equivalents. Using this formula, the board of directors arrived at a
projected enterprise value for Hunan Tongxin of $169,100,000 for 2007. This
was derived using a market capitalization of $168,150,000 an amount
determined by taking the fair market comparable capitalization using an
implied market capitalization equal to a comparable price earnings ratio of
17.7 multiplied by the assumed earnings of Hunan Tongxin for 2007 of
$9,500,000. There is anticipated to be no additional long-term debt in 2007
over the existing $5,300,000 and no preferred equity issued and outstanding
in Hunan Tongxin. Cash and cash equivalents of Hunan Tongxin for 2007 were
assumed to be $5,900,000 resulting from Hunan Tongxin's ongoing operations.
Based on the assumed 6,380,250 shares that will be outstanding upon
completion of the Equity Acquisition, the Board computed a per share price
of $26.50, or approximately $19.06 above the redemption value of AAAC's
common stock (approximately $7.60). Stockholders should note that these
evaluation computations are not predictions of the actual market price of
AAAC either upon consummation of the transaction or at any time after that.
The AAAC board of directors believes because of the financial skills
and automotive background of all of its directors, it was qualified to
make this analysis itself and conclude that the acquisition of Hunan Tongxin
met this 80% test requirement without recourse to an independent source.
The entire AAAC board of directors is comprised of directors with extensive
experience in analyzing acquistion targets and assessing their future values.
AAAC officers William R. Herren and Rudy Wilson have been involved in
identifying and completing seven investment projects in China with over $250
million in direct investment while employed at General Motors. David J.Brophy,
leads the University of Michigan's Private Equity and Entrepreneurship Center
and brings considerable independent expertise in this area. Donald L. Runkle
brings experience from numerous global acquisitions during his tenure at
Delphi Automotive.
Now, the background of the company being acquired:
BACKGROUND
Hunan Tongxin is the largest independent Chinese supplier of Engineered
Vehicle Body Structures ("EVBS") capable of providing products for both
light and commercial vehicles in addition to designing, fabricating and
testing dies used to stamp automotive body panels. EVBS consists of
exterior body panels including doors, floor pans, hoods, side panels,
fenders. Hunan Tongxin also manufactures complete cab structures for
commercial vehicles. Hunan Tongxin's components must meet exacting
dimensions for fit and finish before they are assembled and finally
painted. These capabilities enable Hunan Tongxin to participate
effectively in all sectors of the Chinese automotive market including
light and commercial vehicles.
STRATEGY
Hunan Tongxin captured approximately 7% of the independent EVBS market
in 2005 and plans to increase its share to 20% by 2010. It anticipates
entering the North American and European collision parts aftermarket
based on what it perceives to be products that are comparable to those
of other automotive suppliers but selling at prices that will give it
a competitive advantage.
Hunan Tongxin's goal is to become one of the world's premier EVBS
companies.
The principal elements of its core business strategies are so
follows:
* Maintaining its leadership position in China's EVBS
* Enhancing the leadership position in die design and fabrication.
* Increasing value added content for cab assembly.
* Focusing on high-value EVBS design services
Since 2004 Hunan Tongxin had successfully expanded to the following
Southeast Asia exports markets:
* Vietnam EVBS market
* Cambodia EVBS market
More updates will come soon....
Friday, October 26, 2007
Update on Chinacast Education (CEUC.OB)
As mentioned earlier this morning, Chinacast is to be traded on Nasdaq. PR has just been released at 3pm EST as expected:
http://biz.yahoo.com/pz/071026/129805.html
ChinaCast Education Corporation Announces Transfer of Shares to the NASDAQ Global Market From the OTC and New Ticker Symbol: 'CAST'
Friday October 26, 3:00 pm ET
BEIJING, Oct. 26, 2007 (PRIME NEWSWIRE) -- ChinaCast Education Corporation (OTC BB:CEUC.OB - News), one of the leading e-learning and training services providers in China, today announced that it received approval to move its listing from the OTC to the NASDAQ Global Market.
ADVERTISEMENT
Trading of ChinaCast's common shares, warrants and units on the NASDAQ Global Market will begin at the market opening on Monday, October 29, 2007, under the new ticker symbols ``CAST,'' ``CASTW'' and ``CASTU'' for common shares, warrants and units respectively.
Ron Chan, Chairman and CEO of ChinaCast commented, ``We are very pleased to have our shares commence trading on the NASDAQ Stock Exchange, which we believe is recognized around the world as one of the largest and most respected U.S. markets as well as having very high listing standards. We hope that this will enhance the volume and tradability of ChinaCast shares thereby benefiting our shareholders.''
--------------------------------------------------------------------
I will probably drop CEUC.OB (CAST on Monday) from the list of undiscovered stocks, as I believe it has been discovered, judging by the latest volume and the news of Nasdaq listing.
http://biz.yahoo.com/pz/071026/129805.html
ChinaCast Education Corporation Announces Transfer of Shares to the NASDAQ Global Market From the OTC and New Ticker Symbol: 'CAST'
Friday October 26, 3:00 pm ET
BEIJING, Oct. 26, 2007 (PRIME NEWSWIRE) -- ChinaCast Education Corporation (OTC BB:CEUC.OB - News), one of the leading e-learning and training services providers in China, today announced that it received approval to move its listing from the OTC to the NASDAQ Global Market.
ADVERTISEMENT
Trading of ChinaCast's common shares, warrants and units on the NASDAQ Global Market will begin at the market opening on Monday, October 29, 2007, under the new ticker symbols ``CAST,'' ``CASTW'' and ``CASTU'' for common shares, warrants and units respectively.
Ron Chan, Chairman and CEO of ChinaCast commented, ``We are very pleased to have our shares commence trading on the NASDAQ Stock Exchange, which we believe is recognized around the world as one of the largest and most respected U.S. markets as well as having very high listing standards. We hope that this will enhance the volume and tradability of ChinaCast shares thereby benefiting our shareholders.''
--------------------------------------------------------------------
I will probably drop CEUC.OB (CAST on Monday) from the list of undiscovered stocks, as I believe it has been discovered, judging by the latest volume and the news of Nasdaq listing.
Update on Chinacast Education (CEUC.OB)
Looks like CEUC.OB has just been approved for Nasdaq according to this SEC document filed last night:
http://www.sec.gov/Archives/edgar/data/1261888/000095013407021980/f34850e8va12b.htm
Expecting PR on this now....
Also take a look a this nice write-up. Sums up my earlier research and more:
http://seekingalpha.com/article/51338-chinacast-education-undiscovered-undervalued-underplayed
http://www.sec.gov/Archives/edgar/data/1261888/000095013407021980/f34850e8va12b.htm
Expecting PR on this now....
Also take a look a this nice write-up. Sums up my earlier research and more:
http://seekingalpha.com/article/51338-chinacast-education-undiscovered-undervalued-underplayed
Thursday, October 25, 2007
Update on AAAC.OB
Yesterday, there was a big block in the warrants - AAACW.OB - 380k. Today another decent block in common - 75k. I expect another filing on these transactions soon. Seems like a continuous accumulation. Company is completely under radar at this point.
Thursday, October 18, 2007
Asia Automotive Acquisition Corp (AAAC.OB) - DD
As promised, here is full DD on new pick: Asia Automotive Acquisition Corp (AAAC.OB), which also has warrants AAACW.OB.
This is a blank check company (similar to how YTEC, SEED, HLSYF, and many other chinese companies started)>
I'm going to start of with this link:
http://www.sec.gov/Archives/edgar/data/1332552/000136231007002247/c71230exv99w2.htm
This link shows their presentation of the upcoming acquisition of Hunan Tongxin Enterprise.
Couple of highlights:
Now, as recent as last week, Jeff Feinberg bought a big chunk of shares increasing his share to 18% of current O/S. (total of just over 1 mil shares now owned by him)
http://www.sec.gov/Archives/edgar/data/1088219/000091957407004751/xslF345X02/p788846a_ex.xml
Couple of financial facts from new company:
On a historical basis, Hunan TX Enterprise Co. Ltd(TX) had audited revenues of $66.6 million in 2006 compared to $58.8 million in the previous year, an increase of 13.3% and earned net income of $5.7 million in 2006 compared to $752k in the previous year, an increase of 658%.
As a performance incentive, 2 million shares will be issuable to TX management on an all or none basis by March, 2008 in the event that TX attains 2007 net income of $9.5 million, which would represent a 66.7% increase from 2006.
For the first six months of 2007, on a reviewed basis, TX had revenues of $41.1 million compared to $32.8 million in the same period in 2006, an increase of 28%. In the same periods, net income rose to $5.3 million from $2.7 million representing an increase of 94%.
This is taken from here: http://biz.yahoo.com/prnews/070918/cltu069.html?.v=96
Now, let's recap - in 2006, net income was $5.7 million. In first half of 2007 alone, they already had net income of $5.3 mil, increase of 94% over last year. They expect to have a net income of $9.5 mil with only 12.8 mil O/S after incentives and transaction. Stock is currently trading at $8, with PE for 2007 of less than 12. With the growth they have, they should be trading a lot higher once the transaction is complete, and they trade on NASDAQ.
This is exactly how YTEC (former YCHTF.OB started), which I highligted back in January of 2007. The number here are even better.
Warrants have an expiration date of April 11, 2012 - PLENTY of time, making it very safe buy. They have a strike of $5.
Do your own DD and good luck.
This is a blank check company (similar to how YTEC, SEED, HLSYF, and many other chinese companies started)>
I'm going to start of with this link:
http://www.sec.gov/Archives/edgar/data/1332552/000136231007002247/c71230exv99w2.htm
This link shows their presentation of the upcoming acquisition of Hunan Tongxin Enterprise.
Couple of highlights:
- Revenue growth of 47% from 2004-2006
- Growth of 28% in first half of 2007 over first half of 2006
- Gross margin increase from 29.9% to 35.5%
- EBITDA increase from 16.7% to 24.1%
- 95% increase in net income from first half of 2006 to first half of 2007
- Target net income in 2007 -> 9.5 mil (12.8 mil total O/S after the transaction and including incentives of 2 mil for reaching net income target) ...giving the total net earnings of 0.74 in 2007.
- Total O/S after acquisition -> 12.8 mil including incentives, float is roughly 5 mil
- Will seek NASDAQ listing after acquisition is complete
- Additional 4 potential acquisitions are coming
- Very experienced management with each having over 25/30 years experience in automotive industry
Now, as recent as last week, Jeff Feinberg bought a big chunk of shares increasing his share to 18% of current O/S. (total of just over 1 mil shares now owned by him)
http://www.sec.gov/Archives/edgar/data/1088219/000091957407004751/xslF345X02/p788846a_ex.xml
Couple of financial facts from new company:
On a historical basis, Hunan TX Enterprise Co. Ltd(TX) had audited revenues of $66.6 million in 2006 compared to $58.8 million in the previous year, an increase of 13.3% and earned net income of $5.7 million in 2006 compared to $752k in the previous year, an increase of 658%.
As a performance incentive, 2 million shares will be issuable to TX management on an all or none basis by March, 2008 in the event that TX attains 2007 net income of $9.5 million, which would represent a 66.7% increase from 2006.
For the first six months of 2007, on a reviewed basis, TX had revenues of $41.1 million compared to $32.8 million in the same period in 2006, an increase of 28%. In the same periods, net income rose to $5.3 million from $2.7 million representing an increase of 94%.
This is taken from here: http://biz.yahoo.com/prnews/070918/cltu069.html?.v=96
Now, let's recap - in 2006, net income was $5.7 million. In first half of 2007 alone, they already had net income of $5.3 mil, increase of 94% over last year. They expect to have a net income of $9.5 mil with only 12.8 mil O/S after incentives and transaction. Stock is currently trading at $8, with PE for 2007 of less than 12. With the growth they have, they should be trading a lot higher once the transaction is complete, and they trade on NASDAQ.
This is exactly how YTEC (former YCHTF.OB started), which I highligted back in January of 2007. The number here are even better.
Warrants have an expiration date of April 11, 2012 - PLENTY of time, making it very safe buy. They have a strike of $5.
Do your own DD and good luck.
New - Asia Automotive Acquisition Corp (AAAC.OB)
Another potentially attractive chinese merger / acquisition with recent impressive buys by Jeff Feinberg is Asia Automotive Acquisition Corp (AAAC.OB and AAACW.OB)
They are acquiring profitable company - Hunan TX Enterprise Co., Ltd., with explosive growth. I will have a complete DD on this later tonight.
They are acquiring profitable company - Hunan TX Enterprise Co., Ltd., with explosive growth. I will have a complete DD on this later tonight.
Tuesday, October 16, 2007
Update on Harbin Electric (HRBN)
Harbin Electric (HRBN) stock retreated from its highs for some minor profit taking. It used market weakness as an excuse. I believe this is just a small bump. Nothing has changed. With a possible strong day in the market tomorrow, we may see another jump in HRBN.
Update on CEUC.OB
A while ago, I profiled ChinaCast Education (CEUC.OB). You can find corresponding research in the earlier blog posting. Unfortunately, it completely dropped out of radar for many and it was slowly drifting down. In the past week, the stock made a big comeback, in large due to pretty good presentation posted on SEC site:
http://www.sec.gov/Archives/edgar/data/1261888/000117184307000548/exh_991.htm
But here is another kicker. Tomorrow's IPO - NED is in China Education sector, which will prompt others (already did) to search for sympathy plays. Chinacast Education (CEUC.OB) is definitely one of them. Again, refer to the previous posting for more information about this company.
http://www.sec.gov/Archives/edgar/data/1261888/000117184307000548/exh_991.htm
But here is another kicker. Tomorrow's IPO - NED is in China Education sector, which will prompt others (already did) to search for sympathy plays. Chinacast Education (CEUC.OB) is definitely one of them. Again, refer to the previous posting for more information about this company.
Wednesday, October 10, 2007
Update on Harbin Electric (HRBN)
I remember back in the days, YTEC was barely trading 30k a day when I first mentioned it 9 months ago....sometimes even less....it traded that much for very long time....now 100%+ higher, people are jumping all over it with at least 1mil a day.
I dropped YTEC from the list of undiscovered stocks now, as I mentioned few days ago, but HRBN is still here. It barely gets 100k day. With its float less than 4 mil, and just awesome fundamentals, earnings and revenues projections, and trading near all time high, I see it's just waiting to make a significant move.
Notice how very small fluffy PRs move the stocks lately? SEED - latest example. Company with not so good earnings announced earlier, moved up 60%+ today on very small PR that it's named as one of 200 (!!!) companies of some list.
Or CHNR going up on just pure momentum without any real news.
Imagine when HRBN releases good PR as it always does. It's not a question of "if". It's just a question of "when". Volume of anything over 300k will take it very high. For now, it still remains an "undiscovered" stock.
I dropped YTEC from the list of undiscovered stocks now, as I mentioned few days ago, but HRBN is still here. It barely gets 100k day. With its float less than 4 mil, and just awesome fundamentals, earnings and revenues projections, and trading near all time high, I see it's just waiting to make a significant move.
Notice how very small fluffy PRs move the stocks lately? SEED - latest example. Company with not so good earnings announced earlier, moved up 60%+ today on very small PR that it's named as one of 200 (!!!) companies of some list.
Or CHNR going up on just pure momentum without any real news.
Imagine when HRBN releases good PR as it always does. It's not a question of "if". It's just a question of "when". Volume of anything over 300k will take it very high. For now, it still remains an "undiscovered" stock.
Tuesday, October 9, 2007
Update on Conrad Industries (CNRD.PK)
From TA Perspective, chart is ready for a massive breakout. Perfect "Cup and Handle" has been formed. Take a look: http://stockcharts.com/h-sc/ui?s=cnrd
The breakout coupled with pre-earnings run may take the stock up really high from the current $17's levels...
The breakout coupled with pre-earnings run may take the stock up really high from the current $17's levels...
NEW - Jaguar Acquisition Corporation (JGAC.OB)
This one is very risky play as there are still many unknowns. So, highly speculative stock. Use extreme caution.
STV - China Digital TV Holding opened on NYSE with the boom...going from roughly $30 to $55 in 2 days. China TV market is hot.
Well, look at this company - Jaguar Acquisition Corporation. (JGAC.OB).
They just announced letter of intent to acquire China Cablecom Ltd.
Expecting news on this within 2 weeks according to the PR below:
http://biz.yahoo.com/iw/070927/0307525.html
Jaguar Acquisition Corporation Announces Letter of Intent to Acquire China Cablecom Ltd.
Thursday September 27, 8:00 am ET
Jaguar Intends to Enter the Rapidly Growing Cable TV Sector in China; China Cablecom Is an Emerging Consolidator of Cable TV Operating Companies Focused on China's Shandong Province; China Cablecom Raises $20 Million Bridge-Financing to Secure Acquisition
CONSHOHOCKEN, PA--(MARKET WIRE)--Sep 27, 2007 -- Jaguar Acquisition Corporation (OTC BB:JGAC.OB - News), a special purpose acquisition company ("Jaguar"), today announced a Letter of Intent ("LOI") to acquire all of the issued and outstanding shares of China Cablecom Ltd., a British Virgin Islands company, ("China Cablecom"), an emerging consolidated cable network operator in the highly populated Shandong Province in the People's Republic of China (PRC). To secure this proposed transaction, China Cablecom has raised $20 million of debt and equity bridge financing. Chardan Capital Markets acted as placement agent in the transaction.
ADVERTISEMENT
The Company anticipates providing further details on this proposed transaction in the next two to three weeks.
Pursuant to the provisions of its certificate of incorporation, the Company now has until April 13, 2008 to complete its business combination, having satisfied the criteria for extension set forth in the certificate of incorporation. The Company anticipates signing a definitive agreement relating to its business combination within the next 30 days
Again, use extreme caution and do your own DD.
STV - China Digital TV Holding opened on NYSE with the boom...going from roughly $30 to $55 in 2 days. China TV market is hot.
Well, look at this company - Jaguar Acquisition Corporation. (JGAC.OB).
They just announced letter of intent to acquire China Cablecom Ltd.
Expecting news on this within 2 weeks according to the PR below:
http://biz.yahoo.com/iw/070927/0307525.html
Jaguar Acquisition Corporation Announces Letter of Intent to Acquire China Cablecom Ltd.
Thursday September 27, 8:00 am ET
Jaguar Intends to Enter the Rapidly Growing Cable TV Sector in China; China Cablecom Is an Emerging Consolidator of Cable TV Operating Companies Focused on China's Shandong Province; China Cablecom Raises $20 Million Bridge-Financing to Secure Acquisition
CONSHOHOCKEN, PA--(MARKET WIRE)--Sep 27, 2007 -- Jaguar Acquisition Corporation (OTC BB:JGAC.OB - News), a special purpose acquisition company ("Jaguar"), today announced a Letter of Intent ("LOI") to acquire all of the issued and outstanding shares of China Cablecom Ltd., a British Virgin Islands company, ("China Cablecom"), an emerging consolidated cable network operator in the highly populated Shandong Province in the People's Republic of China (PRC). To secure this proposed transaction, China Cablecom has raised $20 million of debt and equity bridge financing. Chardan Capital Markets acted as placement agent in the transaction.
ADVERTISEMENT
The Company anticipates providing further details on this proposed transaction in the next two to three weeks.
Pursuant to the provisions of its certificate of incorporation, the Company now has until April 13, 2008 to complete its business combination, having satisfied the criteria for extension set forth in the certificate of incorporation. The Company anticipates signing a definitive agreement relating to its business combination within the next 30 days
Again, use extreme caution and do your own DD.
Monday, October 8, 2007
Update on Conrad Industries (CNRD.PK)
Just a quick note update on Conrad Indusries (CNRD.PK). Seems like the new base has been set at around $16.80. Breaking above $17.50 will indicate a major breakout. This is just a TA. The quarterly earnings will probably be released in a little over a month. So, I definitely expect a run the closer it gets to the earnings date. Nevertheless, daily fluctuations don't really matter, as this is a long term play with its current value at least $30 dollars, being undervalued only due to its PK status.
Friday, October 5, 2007
T-Bay Holdings Inc. (TBYH.OB) - New
This week we saw a big jump in shares of Orsus Xelent Technologies Inc (AMEX:ORS), designer and manufacturer of award-winning mobile phones for the Asian market, due to their PR regarding updated forecasts.
Well, here is really undervalued and underfollowed stock, which found just a little bit of interest today and moved quickly before retreating on profit taking. This one could really appreciate much higher on its fundamentals along.
Here is the profile:
T-Bay Holdings, Inc., through its subsidiaries, provides a range of mobile handset design and other services to mobile handset brand owners in the People's Republic of China. It offers mobile handset design, industrial and mechanical design, software design, hardware design, and other design services, including GPS device, auto communication system, and radio frequency design. The company also manufactures components, including printed circuit boards and printed circuit board assembly, and whole mobile handsets, as well as after-sale maintenance services. T-Bay Holdings has strategic partnerships with VIA Technologies, Inc.; MediaTek, Inc., Ltd.; Anyka, Inc.; Infineon, Inc.; and Skyworks. It sells its products primarily in southeast Asia, eastern Europe, and Latin America. The company is based in Shanghai, the People's Republic of China.
First, some numbers ->
ORS O/S - 29 mil , float 5 mil
TBYH.OB O/S - 30 mil, float 11 mil
ORS -> Revenues for last year - 68 mil, net income - 6.7 mil, EPS - 0.24
TBYH.OB -> Revenues for last year - 35 mil, net income - 12 mil, EPS - 0.41
TBYH.OB is also projected to make 0.62 this year, and 1.01 next.
But enough of comparison. TBYH.OB does more than just mobil handset design.
Here is interesting PR:
http://biz.yahoo.com/prnews/070726/cnth013.html?.v=33
TBYH Expects Revenue Growth of 30-40% in FY07-08
Thursday July 26, 9:00 am ET
SHANGHAI, China, July 26 /Xinhua-PRNewswire-FirstCall/ -- T-Bay Holdings Inc. (OTC Bulletin Board: TBYH - News) today announced that for fiscal year 07-08, it expects the revenue growth in the range of 30%-40%, and net profit growth of 20-30%. The Company anticipates growth would be mainly attributed to additional design solutions it expects to introduce in the market, the continued strong performance of our existing customers and planned new projects including 3G products.
ADVERTISEMENT
The Company plans to release more than 30 total design solutions based on 4 chipset platforms in fiscal year 07-08, compared to 21 solutions based on one platform in fiscal year 06-07. This represents an anticipated 42.9% growth, and should enable the company to provide solutions covering high-end, mid-end and low-end markets.
Mr. Xiaofeng Li, the CEO of T-Bay said, "Our partnership with MTK, VIA, ANYKA, INFINEON, SKYWORKS has broadened our product lines. For the last fiscal year, we have made considerable investment in upgrading our equipment to improve our R&D capacity. We intend to continuously introduce new solutions with the world's most advanced technologies.''
''Another driver of revenue growth is from our existing customers. Currently, we have about 50 customers, most of whom performed well in the past few months. Based on the volume of purchase orders from our customers, we believe some of our big customers are gaining more market share,'' Mr. Li added. ''We have a diversified customer base which includes mobile handset manufacturers, brand name owners and distributors. We also expect to cooperate with telecom operators in the foreseeable future.''
"In addition, we expect new projects, including the RF design project, 3G extended products, as well as our new Fujian plant, will bring additional revenue from Q3 this year,'' Mr. Li said. ''We successfully achieved 38% growth in revenue with 21% growth in net profit for FY06-07, and we expect another good year with revenue growth of 30-40% and net profit growth of 20- 30%.''
Finally, I believe they also are trying to get to Nasdaq. I will check on that.
This is very undervalued chinese play that is trading at the trailing PE of 8.
And at forward PE of just above 3 for 2009.
It has very thin trading, not many follow it. So, be careful.
Make your own decisions. Good luck.
Well, here is really undervalued and underfollowed stock, which found just a little bit of interest today and moved quickly before retreating on profit taking. This one could really appreciate much higher on its fundamentals along.
Here is the profile:
T-Bay Holdings, Inc., through its subsidiaries, provides a range of mobile handset design and other services to mobile handset brand owners in the People's Republic of China. It offers mobile handset design, industrial and mechanical design, software design, hardware design, and other design services, including GPS device, auto communication system, and radio frequency design. The company also manufactures components, including printed circuit boards and printed circuit board assembly, and whole mobile handsets, as well as after-sale maintenance services. T-Bay Holdings has strategic partnerships with VIA Technologies, Inc.; MediaTek, Inc., Ltd.; Anyka, Inc.; Infineon, Inc.; and Skyworks. It sells its products primarily in southeast Asia, eastern Europe, and Latin America. The company is based in Shanghai, the People's Republic of China.
First, some numbers ->
ORS O/S - 29 mil , float 5 mil
TBYH.OB O/S - 30 mil, float 11 mil
ORS -> Revenues for last year - 68 mil, net income - 6.7 mil, EPS - 0.24
TBYH.OB -> Revenues for last year - 35 mil, net income - 12 mil, EPS - 0.41
TBYH.OB is also projected to make 0.62 this year, and 1.01 next.
But enough of comparison. TBYH.OB does more than just mobil handset design.
Here is interesting PR:
http://biz.yahoo.com/prnews/070726/cnth013.html?.v=33
TBYH Expects Revenue Growth of 30-40% in FY07-08
Thursday July 26, 9:00 am ET
SHANGHAI, China, July 26 /Xinhua-PRNewswire-FirstCall/ -- T-Bay Holdings Inc. (OTC Bulletin Board: TBYH - News) today announced that for fiscal year 07-08, it expects the revenue growth in the range of 30%-40%, and net profit growth of 20-30%. The Company anticipates growth would be mainly attributed to additional design solutions it expects to introduce in the market, the continued strong performance of our existing customers and planned new projects including 3G products.
ADVERTISEMENT
The Company plans to release more than 30 total design solutions based on 4 chipset platforms in fiscal year 07-08, compared to 21 solutions based on one platform in fiscal year 06-07. This represents an anticipated 42.9% growth, and should enable the company to provide solutions covering high-end, mid-end and low-end markets.
Mr. Xiaofeng Li, the CEO of T-Bay said, "Our partnership with MTK, VIA, ANYKA, INFINEON, SKYWORKS has broadened our product lines. For the last fiscal year, we have made considerable investment in upgrading our equipment to improve our R&D capacity. We intend to continuously introduce new solutions with the world's most advanced technologies.''
''Another driver of revenue growth is from our existing customers. Currently, we have about 50 customers, most of whom performed well in the past few months. Based on the volume of purchase orders from our customers, we believe some of our big customers are gaining more market share,'' Mr. Li added. ''We have a diversified customer base which includes mobile handset manufacturers, brand name owners and distributors. We also expect to cooperate with telecom operators in the foreseeable future.''
"In addition, we expect new projects, including the RF design project, 3G extended products, as well as our new Fujian plant, will bring additional revenue from Q3 this year,'' Mr. Li said. ''We successfully achieved 38% growth in revenue with 21% growth in net profit for FY06-07, and we expect another good year with revenue growth of 30-40% and net profit growth of 20- 30%.''
Finally, I believe they also are trying to get to Nasdaq. I will check on that.
This is very undervalued chinese play that is trading at the trailing PE of 8.
And at forward PE of just above 3 for 2009.
It has very thin trading, not many follow it. So, be careful.
Make your own decisions. Good luck.
Update on few stocks
Just an update on some stocks -
Since YTEC has now consistently showing decent volume, I'm dropping it from the list of undiscovered stocks and will no longer provide updates on it.
HRBN and CNRD.PK are still trading on very low volume. I believe they both still have a great potential. You have to really be careful with low volume low float stocks.
Updating the post on September 26th, when I said once HRBN breaks through 14.50-15.00 level, we'll see first target of $19. Well, this week it reached that target. This is only first target just on technical breakout. Once it starts releasing news and the volume picks up, we'll see well north of $21 level.
Please do your DD before jumping in to these low volume stocks.
Since YTEC has now consistently showing decent volume, I'm dropping it from the list of undiscovered stocks and will no longer provide updates on it.
HRBN and CNRD.PK are still trading on very low volume. I believe they both still have a great potential. You have to really be careful with low volume low float stocks.
Updating the post on September 26th, when I said once HRBN breaks through 14.50-15.00 level, we'll see first target of $19. Well, this week it reached that target. This is only first target just on technical breakout. Once it starts releasing news and the volume picks up, we'll see well north of $21 level.
Please do your DD before jumping in to these low volume stocks.
Thursday, October 4, 2007
Update on Harbin Electric (HRBN)
Harbin Electric had an excellent presentation at William Blair & Company on October 3rd. Please listen to it here: http://www.wsw.com/webcast/blair9/hrbn/
You can see slides there as well. Presentation is long (30 minutes), but really good...Definitely the best to date..
Few highlights from the presentation:
Overall, great presentation. Worth listening to...
Even though the stock has reached new all time high levels recently, it's still not getting the volume. I expect the stock to appreciate to much higher levels from here in the long run.
You can see slides there as well. Presentation is long (30 minutes), but really good...Definitely the best to date..
Few highlights from the presentation:
- Projected revenues for 2010 are $350M. That compares with just $40 mil in 2006. (that's nearly 9 times higher from current levels)
- Started shipping products to one of the "Big 3" auto manufacturers in US.
- New facility in Shanghai will open in Q2 2008. Will increase micro-motor units production from 2.4 million currently to 10 million once built.
- Margins consistently stay above 45% and will continue to stay that way, while industry standard is high teens up to 20%..
- The only Chinese manufacturer in its sector that owns a number of patents for its motors and system designs
- The first and only Chinese company that has received contracts from the government to develop a linear motor system for building an urban mass transportation infrastructure domestically
- Currently the only Chinese manufacturer producing linear motors for blue chip US Companies
- Tax rate: 0% thru 2007, only 7.5% in 2008-2010
- Established representative office in US for business development
Overall, great presentation. Worth listening to...
Even though the stock has reached new all time high levels recently, it's still not getting the volume. I expect the stock to appreciate to much higher levels from here in the long run.
Wednesday, September 26, 2007
Update on YTEC (Yucheng Technologies)
Looks like YTEC has finally caught the chinese momo. Earlier DD has been provided since beginning of the year actually, but it didn't seem to move the stock. It seems that it took serious chinese momo to finally move the stock towards new all time high on very high volume for this stock.
Just to recap its financials: Roughly 38 mil in cash, no debt, O/S = 16.9 million, float is roughly $10.35 million. Projected growth is around 40%; now has 3 analysts covering the stock - Maxim Group and ROTH Capital with Buy Ratings, and Avondale Partners with Outperform rating. Average 12 month target on these analysts is $13.50
Projected profits by the company in upcoming years:
2007 US$8.5 million
2008 US$11.9 million
2009 US$16.7 million
2010 US$23.3 million
Recently Yucheng Technologies Limited announced Strategic Online Banking Contract Win with Hangzhou City Commercial Bank. Prior to this, they have begun initial working relationships with several other major city commercial banks including Bank of Beijing, Bank of Shanghai, Bank of Nanjing and Shenzhen Ping An Bank. Here is the recent news release: http://biz.yahoo.com/prnews/070924/cnm018.html?.v=18
It's hard to say where the momentum will take stock, but one thing for sure - it's finally getting discovered. Good luck!
Just to recap its financials: Roughly 38 mil in cash, no debt, O/S = 16.9 million, float is roughly $10.35 million. Projected growth is around 40%; now has 3 analysts covering the stock - Maxim Group and ROTH Capital with Buy Ratings, and Avondale Partners with Outperform rating. Average 12 month target on these analysts is $13.50
Projected profits by the company in upcoming years:
2007 US$8.5 million
2008 US$11.9 million
2009 US$16.7 million
2010 US$23.3 million
Recently Yucheng Technologies Limited announced Strategic Online Banking Contract Win with Hangzhou City Commercial Bank. Prior to this, they have begun initial working relationships with several other major city commercial banks including Bank of Beijing, Bank of Shanghai, Bank of Nanjing and Shenzhen Ping An Bank. Here is the recent news release: http://biz.yahoo.com/prnews/070924/cnm018.html?.v=18
It's hard to say where the momentum will take stock, but one thing for sure - it's finally getting discovered. Good luck!
Update on Harbin Electric (HRBN)
Harbin Electric has been releasing great news after great news. Projected revenues update in the last PR was great and exceeded my estimates. It has a low float, and thus its trading could be sideways for some time, until it catches either momentum or another great PR is released. Nevertheless, it's a great long term hold, which may have bumps here and there.
Technical analysis of the chart - $14.50 - 15.00 is a major resistance area. Once it pushes through this area, I believe we should see a nice upside. I'm expecting to see $19 as the first target from these levels.
Technical analysis of the chart - $14.50 - 15.00 is a major resistance area. Once it pushes through this area, I believe we should see a nice upside. I'm expecting to see $19 as the first target from these levels.
Monday, August 6, 2007
Update on Conrad Industries (CNRD.PK)
First, I'll recap my original message on April 10th (only 4 months ago), when CNRD.PK was trading at $6.50. And then, I'll update it with the latest earnings and new targets. I think it's important to look back at April's message to see what has changed and to check the amazing growth in just 4 months....So, here is the April 10th message:
-------------------------------------------------------------
Highly profitable company reported excellent earnings today.
http://www.pinksheets.com/pdfservlet?id=10409
Excerpt from this release:
REPORT TO OUR FELLOW SHAREHOLDERS
The positive changes we began to experience in the latter part of 2005 continued during 2006 as we completed the year with record
revenue, net income, and backlog, and a much improved balance sheet. At the same time our workforce achieved an outstanding
safety record.
Although, between 2002 and the first half of 2005 we experienced a difficult Gulf of Mexico energy marine construction and repair
market, we have seen in 2006 a major increase in projects for other commercial customers as well as an increase in energy projects.
Because much of our repair work comes from the Gulf of Mexico oil and gas industry, improved conditions in that industry have
positively affected our repair segment. For 2006, 45.5% of total revenue was energy related, 38.5% was other commercial and
16.0% was government. This compares to 22.6% energy, 38.2% other commercial and 39.2% government in 2005.
During 2006, we added $113.1 million of new contracts to our new construction segment, of which $42.3 million was related to the
oil and gas industry and $70.8 million was related to other commercial projects, generally attributable to increased spending for
construction activities, double skin tank barges, and harbor tugs. As a result of this increased activity, margins have improved on
recent new construction contracts. Our backlog as of December 31, 2006 was approximately $84.5 million compared to $35.4
million as of December 31, 2005. At December 31, 2006, 63.3% of our vessel construction backlog was from other commercial
contracts, 31.7% was from energy related customers and 5.0% was from government contracts. This compares to backlog at
December 31, 2005 of 38.4% other commercial, 0.0% energy, and 61.6% government.
Our construction projects in progress as of December 31, 2006 consisted of 34 vessels which includes two 124-foot towboats, five
double-skin tank barges, an ST tug, three z-drive tugs, a 200 class liftboat, five 175 class liftboats, a 3300 hp steel towboat, and
sixteen barges ranging in size from 120 feet to 160 feet. Our customers comprise a very diverse group that crosses a wide range of
businesses including the energy sector, dredging, construction, towing, and bunkering markets, as well as the US Army Corps of
Engineers.
During 2006 we delivered 30 vessel construction jobs of various types and sizes which are the most jobs delivered in one year by
our Company. We delivered nine deck barges, an anchor scow, four crane barges, two inland double skin tank barges, four spud
barges, three double skin tank barges, three landing barges, a fish stocking vessel, an aluminum fire and patrol boat, and two inland
tow boats.
During 2006, revenue increased 88.4% to $121.8 million from $64.7 million in 2005. The increase in revenue for the current year is
primarily a result of the overall increase in production hours. Vessel construction hours increased 73.0% compared to 2005, while
repair and conversion hours increased 125.2% compared to 2005.
We reported net income of $5.9 million and net income per diluted share of $0.81 for the year ended December 31, 2006 compared
to net income of $111,000 and income per diluted share of $0.02 for the year ended December 31, 2005. This increase in net income
is primarily the result of a very strong market for our repair services.
We revised our loan agreement and extended our maturity date to 2011 and increased our line of credit to $10 million. We reduced
our total loan balance from $18.3 million at December 31, 2005 to $10.2 million at December 31, 2006 while increasing our net
working capital from $6.3 million at December 31, 2005 to $7.6 million at December 31, 2006.
Our Company is very different today compared to a few years ago. We have a more diversified customer and product mix. We’ve
expanded our capacity with the investments that we’ve made and we’ve grown our workforce and management in order to handle
the additional production levels. With an improved marine environment, the strong support of our loyal employees, customers and
suppliers, our record new construction backlog and stronger financial condition, we are optimistic about our continuing ability to
increase gross profit and the bottom line in 2007, leading to an increase in shareholder value.
To sum it all up:
Net income for 2006 is 0.81 compared to 0.02 for 2005 (5.9 mil vs 111k)
Revenues increased 88.4% to $121.8 million from $64.7 million in 2005
EPS progression through 2006 is as following:
.13, .17, .19 and .32 for Q1 through Q4, respectively. Earnings are fully taxed and diluted.
Backlog up to $85M versus $35M yoy. And that's for new constructions...
Doesn't even include repair revenues (which account for 40% of total revenues)
Could be at least $1.2 in earnings for 2007 for $7 dollar stock....
At highly convservative PE of 10, this should be at least $12 dollar stock....
Add to this, low O/S and float (momo)
O/S is only 7.28 mil
Last, but not least, it's a hurricane stock with potentially big hurricane season on the way.
Profile:
Conrad Industries, Inc. engages in the construction, conversion, and repair of various marine vessels for commercial and governmental customers in the United States. It also engages in the fabrication of modular components of offshore drilling rigs; and floating, production, storage, and offloading vessels. The company constructs various steel and aluminum marine vessels, including large and small deck cargo barges, single and double hull tank barges, lift boats, push boats, towboats, offshore tugboats, and offshore supply vessels. Its conversion and repair of steel and aluminum marine vessels consist of lengthening the mid-bodies of vessels, modifying vessels to permit their use for a different type of activity, and other modifications to increase the cargo carrying capacity or functionality of a vessel. The company operates four shipyards in South Louisiana and Texas with direct access to the Gulf of Mexico. Conrad Industries was founded in 1948 and is based in Morgan City, Louisiana.
They used to be listed on Nasdaq, but were not profitable, and chose to delist in 2005 due to Sarbanes Oxley expenses.....
Now, that they are highly profitable, they may try Nasdaq again, in my opinion.
Once again - highly profitable, low float, low O/S, hurricane momo, unknown play...just repoted huge earnings.
References:
http://www.pinksheets.com/quote/finance.jsp?symbol=CNRD
--------------------------------------------------------------------------------
Now, here is an update as of August 6th, 2007:
The stock is now up approximately 170% since original recommendation in April.
Late Thusday of last week, they reported huge earnings:
http://www.pinksheets.com/otciq/ajax/showFinancialReportById?id=11384
They reported $0.63 dilluted ($0.64 basic) on revenues of $41.3 million.
O/S is only 7.3 mil, float is only 3.6 mil.
Here is the new progression of earnings showing amazing sequential growth:
Sequential growth:
Q1 2006 = $0.13
Q2 2006 = $0.17
Q3 2006 = $0.19
Q4 2006 = $0.32
Q1 2007 = $0.45
Q2 2007 = $0.63
Earnings in last 2 quarters exceed total 2006 earnings by ~50%.....At this rate, they may get well above $2.20 in earnings in 2007...
Key points from the latest earnings release:
Backlog was $82.4 million at June 30, 2007 as compared to $84.5 million at December 31, 2006 and $70.8 million at June 30, 2006. Subsequently, we signed contracts with various customers for a total of $13.7 million, including options. Additionally, we were awarded a contract with a contract price of $22.5 million by the Texas
Department of Transportation which we expect to sign during August 2007 for the construction of a 264’x66’x15’ passenger/vehicle ferry scheduled for delivery during 2009.
This means they have $82.4 mil + another $36.2 mil in backlog.
Even at highly conservative PE of 15 given this kind of growth, this is a $33 stock....
Food for thought:
Check the competitor:
http://finance.yahoo.com/q?s=tod -> Todd Shipyards Corp. (NYSE:TOD)
Only $0.57 reported for 2006 on $125.5 mil in revenues in Todd Shipyards (TOD) and the stock is trading at $22 at PE of 38.
-------------------------------------------------------------
Highly profitable company reported excellent earnings today.
http://www.pinksheets.com/pdfservlet?id=10409
Excerpt from this release:
REPORT TO OUR FELLOW SHAREHOLDERS
The positive changes we began to experience in the latter part of 2005 continued during 2006 as we completed the year with record
revenue, net income, and backlog, and a much improved balance sheet. At the same time our workforce achieved an outstanding
safety record.
Although, between 2002 and the first half of 2005 we experienced a difficult Gulf of Mexico energy marine construction and repair
market, we have seen in 2006 a major increase in projects for other commercial customers as well as an increase in energy projects.
Because much of our repair work comes from the Gulf of Mexico oil and gas industry, improved conditions in that industry have
positively affected our repair segment. For 2006, 45.5% of total revenue was energy related, 38.5% was other commercial and
16.0% was government. This compares to 22.6% energy, 38.2% other commercial and 39.2% government in 2005.
During 2006, we added $113.1 million of new contracts to our new construction segment, of which $42.3 million was related to the
oil and gas industry and $70.8 million was related to other commercial projects, generally attributable to increased spending for
construction activities, double skin tank barges, and harbor tugs. As a result of this increased activity, margins have improved on
recent new construction contracts. Our backlog as of December 31, 2006 was approximately $84.5 million compared to $35.4
million as of December 31, 2005. At December 31, 2006, 63.3% of our vessel construction backlog was from other commercial
contracts, 31.7% was from energy related customers and 5.0% was from government contracts. This compares to backlog at
December 31, 2005 of 38.4% other commercial, 0.0% energy, and 61.6% government.
Our construction projects in progress as of December 31, 2006 consisted of 34 vessels which includes two 124-foot towboats, five
double-skin tank barges, an ST tug, three z-drive tugs, a 200 class liftboat, five 175 class liftboats, a 3300 hp steel towboat, and
sixteen barges ranging in size from 120 feet to 160 feet. Our customers comprise a very diverse group that crosses a wide range of
businesses including the energy sector, dredging, construction, towing, and bunkering markets, as well as the US Army Corps of
Engineers.
During 2006 we delivered 30 vessel construction jobs of various types and sizes which are the most jobs delivered in one year by
our Company. We delivered nine deck barges, an anchor scow, four crane barges, two inland double skin tank barges, four spud
barges, three double skin tank barges, three landing barges, a fish stocking vessel, an aluminum fire and patrol boat, and two inland
tow boats.
During 2006, revenue increased 88.4% to $121.8 million from $64.7 million in 2005. The increase in revenue for the current year is
primarily a result of the overall increase in production hours. Vessel construction hours increased 73.0% compared to 2005, while
repair and conversion hours increased 125.2% compared to 2005.
We reported net income of $5.9 million and net income per diluted share of $0.81 for the year ended December 31, 2006 compared
to net income of $111,000 and income per diluted share of $0.02 for the year ended December 31, 2005. This increase in net income
is primarily the result of a very strong market for our repair services.
We revised our loan agreement and extended our maturity date to 2011 and increased our line of credit to $10 million. We reduced
our total loan balance from $18.3 million at December 31, 2005 to $10.2 million at December 31, 2006 while increasing our net
working capital from $6.3 million at December 31, 2005 to $7.6 million at December 31, 2006.
Our Company is very different today compared to a few years ago. We have a more diversified customer and product mix. We’ve
expanded our capacity with the investments that we’ve made and we’ve grown our workforce and management in order to handle
the additional production levels. With an improved marine environment, the strong support of our loyal employees, customers and
suppliers, our record new construction backlog and stronger financial condition, we are optimistic about our continuing ability to
increase gross profit and the bottom line in 2007, leading to an increase in shareholder value.
To sum it all up:
Net income for 2006 is 0.81 compared to 0.02 for 2005 (5.9 mil vs 111k)
Revenues increased 88.4% to $121.8 million from $64.7 million in 2005
EPS progression through 2006 is as following:
.13, .17, .19 and .32 for Q1 through Q4, respectively. Earnings are fully taxed and diluted.
Backlog up to $85M versus $35M yoy. And that's for new constructions...
Doesn't even include repair revenues (which account for 40% of total revenues)
Could be at least $1.2 in earnings for 2007 for $7 dollar stock....
At highly convservative PE of 10, this should be at least $12 dollar stock....
Add to this, low O/S and float (momo)
O/S is only 7.28 mil
Last, but not least, it's a hurricane stock with potentially big hurricane season on the way.
Profile:
Conrad Industries, Inc. engages in the construction, conversion, and repair of various marine vessels for commercial and governmental customers in the United States. It also engages in the fabrication of modular components of offshore drilling rigs; and floating, production, storage, and offloading vessels. The company constructs various steel and aluminum marine vessels, including large and small deck cargo barges, single and double hull tank barges, lift boats, push boats, towboats, offshore tugboats, and offshore supply vessels. Its conversion and repair of steel and aluminum marine vessels consist of lengthening the mid-bodies of vessels, modifying vessels to permit their use for a different type of activity, and other modifications to increase the cargo carrying capacity or functionality of a vessel. The company operates four shipyards in South Louisiana and Texas with direct access to the Gulf of Mexico. Conrad Industries was founded in 1948 and is based in Morgan City, Louisiana.
They used to be listed on Nasdaq, but were not profitable, and chose to delist in 2005 due to Sarbanes Oxley expenses.....
Now, that they are highly profitable, they may try Nasdaq again, in my opinion.
Once again - highly profitable, low float, low O/S, hurricane momo, unknown play...just repoted huge earnings.
References:
http://www.pinksheets.com/quote/finance.jsp?symbol=CNRD
--------------------------------------------------------------------------------
Now, here is an update as of August 6th, 2007:
The stock is now up approximately 170% since original recommendation in April.
Late Thusday of last week, they reported huge earnings:
http://www.pinksheets.com/otciq/ajax/showFinancialReportById?id=11384
They reported $0.63 dilluted ($0.64 basic) on revenues of $41.3 million.
O/S is only 7.3 mil, float is only 3.6 mil.
Here is the new progression of earnings showing amazing sequential growth:
Sequential growth:
Q1 2006 = $0.13
Q2 2006 = $0.17
Q3 2006 = $0.19
Q4 2006 = $0.32
Q1 2007 = $0.45
Q2 2007 = $0.63
Earnings in last 2 quarters exceed total 2006 earnings by ~50%.....At this rate, they may get well above $2.20 in earnings in 2007...
Key points from the latest earnings release:
Backlog was $82.4 million at June 30, 2007 as compared to $84.5 million at December 31, 2006 and $70.8 million at June 30, 2006. Subsequently, we signed contracts with various customers for a total of $13.7 million, including options. Additionally, we were awarded a contract with a contract price of $22.5 million by the Texas
Department of Transportation which we expect to sign during August 2007 for the construction of a 264’x66’x15’ passenger/vehicle ferry scheduled for delivery during 2009.
This means they have $82.4 mil + another $36.2 mil in backlog.
Even at highly conservative PE of 15 given this kind of growth, this is a $33 stock....
Food for thought:
Check the competitor:
http://finance.yahoo.com/q?s=tod -> Todd Shipyards Corp. (NYSE:TOD)
Only $0.57 reported for 2006 on $125.5 mil in revenues in Todd Shipyards (TOD) and the stock is trading at $22 at PE of 38.
Friday, June 22, 2007
Chinacast Education (CEUC.OB)
I'd like to introduce a new interesting company - Chinacast Education (CEUC.OB).
The stock trades on Bulletin Board with average volume of only 23k.
Few points:
- It's a China Education Sector - compare it to stellar performance of New Oriental Education & Technology Group (EDU).
- Recents results: ChinaCast Education Corporation Announces First Quarter Results With Net Income Up 41 Percent From Last Year
http://biz.yahoo.com/pz/070521/119995.html
FIRST QUARTER HIGHLIGHTS
-- Gross margin of 57% and net margin of 33% versus 47% and 22% in Q1
FY2006
-- Q1 Revenues off 6% due to re-structuring of Tongfang Education
joint venture and lower equipment sales which were particularly
high in the first quarter of 2006
-- Establishment of a new wholly-owned subsidiary, ChinaCast Language
Training Education Technology Limited ("CLTET"), to provide English
language training services in China
-- Signing of additional post-secondary education institution distance
learning customer -- Shanghai University of Electric Power
- In addition, they have recently signed an additional post-secondary educational e-learning customer, Shanghai University of Electric Power, and plan to roll out up to 50 remote training classrooms over the next 12 months.
- hope to be listed on the NASDAQ within the next 90 days according to the PR on May 21st.
- Only 26 mil O/S
- and finally, Intel Corporation announced their 8.2% investment in ChinaCast Education (2,144,511 shares) on Jun 12 -> http://www.sec.gov/Archives/edgar/data/50863/000005086307000258/sc13g2.htm
More updates are coming on this...
The stock trades on Bulletin Board with average volume of only 23k.
Few points:
- It's a China Education Sector - compare it to stellar performance of New Oriental Education & Technology Group (EDU).
- Recents results: ChinaCast Education Corporation Announces First Quarter Results With Net Income Up 41 Percent From Last Year
http://biz.yahoo.com/pz/070521/119995.html
FIRST QUARTER HIGHLIGHTS
-- Gross margin of 57% and net margin of 33% versus 47% and 22% in Q1
FY2006
-- Q1 Revenues off 6% due to re-structuring of Tongfang Education
joint venture and lower equipment sales which were particularly
high in the first quarter of 2006
-- Establishment of a new wholly-owned subsidiary, ChinaCast Language
Training Education Technology Limited ("CLTET"), to provide English
language training services in China
-- Signing of additional post-secondary education institution distance
learning customer -- Shanghai University of Electric Power
- In addition, they have recently signed an additional post-secondary educational e-learning customer, Shanghai University of Electric Power, and plan to roll out up to 50 remote training classrooms over the next 12 months.
- hope to be listed on the NASDAQ within the next 90 days according to the PR on May 21st.
- Only 26 mil O/S
- and finally, Intel Corporation announced their 8.2% investment in ChinaCast Education (2,144,511 shares) on Jun 12 -> http://www.sec.gov/Archives/edgar/data/50863/000005086307000258/sc13g2.htm
More updates are coming on this...
Cobalis (CLSC.OB) update
Cobalis kept on delaying results and then came out with a statement on May 31st that they will need to perform an audit on the results:
The Company said its concerns included the possibility of incorrect data entry in patient-symptom diaries. Given inconsistencies it has identified, the Company does not know at this time which data are correct, and it said it must review source documents and conduct other quality control measures as part of its audit. Cobalis said the audit will also include an examination of the consistency of data collection methods in both studies
http://biz.yahoo.com/bw/070531/20070531006102.html?.v=1
Due to that, it's extremely risky investment, as this approval was their only hope in my opinion. I don't recommend staying in this stock unless you are willing to risk everything.
The Company said its concerns included the possibility of incorrect data entry in patient-symptom diaries. Given inconsistencies it has identified, the Company does not know at this time which data are correct, and it said it must review source documents and conduct other quality control measures as part of its audit. Cobalis said the audit will also include an examination of the consistency of data collection methods in both studies
http://biz.yahoo.com/bw/070531/20070531006102.html?.v=1
Due to that, it's extremely risky investment, as this approval was their only hope in my opinion. I don't recommend staying in this stock unless you are willing to risk everything.
Monday, June 11, 2007
Yucheng Technologies (YTEC) Update
In just 2 days (June 13th), Yucheng Technologies will no longer have warrants. June 13th is the last day to exercise these warrants or they will be extinguished.
Within 10 days (perhaps around June 20th) we should see filing for 2006 annual results, as well as Q1/2007 results along with the conference call. Current estimate for this quarter is 0.06 (as estimated by Maxim Group analysts). I believe we should see steady increase in pps following the warrants redemption. It will be interesting to see how many warrants were exercised and the total amount the company received based on that.
Within 10 days (perhaps around June 20th) we should see filing for 2006 annual results, as well as Q1/2007 results along with the conference call. Current estimate for this quarter is 0.06 (as estimated by Maxim Group analysts). I believe we should see steady increase in pps following the warrants redemption. It will be interesting to see how many warrants were exercised and the total amount the company received based on that.
Saturday, May 12, 2007
Cobalis Corp (CLSC.OB) - speculative
Speculative buy - Cobalis Corp (CLSC.OB)...This is under radar biotech company expects to report Top-Line Results for twin pivotal Phase III Clinical Trials of PreHistin(TM) in seasonal allergic rhinitis.
The twin trials are completed, and all of the data from the 23 sites has been collected and is being audited.
In March the company announced that it has completed the locking of the database for its pivotal twin Phase III Clinical Trials of PreHistin(TM) in seasonal allergic rhinitis. An independent contract research organization (CRO) will now begin the process of implementing the statistical analysis plan designed to analyze the data from the pivotal trials.
"We are pleased to have reached this milestone in our PreHistin trials and look forward to reporting top-line results over the next month," commented Dr. Gerald J. Yakatan, Chief Executive Officer for Cobalis Corp. "These twin trials represent two of the largest clinical trials conducted utilizing this novel anti-allergy approach. Our goal is to be able to offer a new, over-the-counter anti-allergy treatment option for allergy sufferers that goes beyond currently available remedies."
The 1,551-patient pivotal Phase III trials investigated the efficacy and safety of treatment with Cobalis' PreHistin on moderate to moderately severe seasonal ragweed allergy patients. The twin trials were designed to support regulatory approval in the United States and key global markets. The studies' primary endpoint is the average improvement in total nasal symptom score (TNSS) in weeks four, five and six of treatment. To observe duration of effect after treatment, patients maintained diaries for symptomology over the final four weeks of the ten-week study.
Very good presentation in November of 2006 here to give you more details on the company:
http://www.wsw.com/webcast/rrshq10/clsc.ob/
If the results are good, I expect the share price to at least double from these levels. ($1 - $1.05 currently)
The twin trials are completed, and all of the data from the 23 sites has been collected and is being audited.
In March the company announced that it has completed the locking of the database for its pivotal twin Phase III Clinical Trials of PreHistin(TM) in seasonal allergic rhinitis. An independent contract research organization (CRO) will now begin the process of implementing the statistical analysis plan designed to analyze the data from the pivotal trials.
"We are pleased to have reached this milestone in our PreHistin trials and look forward to reporting top-line results over the next month," commented Dr. Gerald J. Yakatan, Chief Executive Officer for Cobalis Corp. "These twin trials represent two of the largest clinical trials conducted utilizing this novel anti-allergy approach. Our goal is to be able to offer a new, over-the-counter anti-allergy treatment option for allergy sufferers that goes beyond currently available remedies."
The 1,551-patient pivotal Phase III trials investigated the efficacy and safety of treatment with Cobalis' PreHistin on moderate to moderately severe seasonal ragweed allergy patients. The twin trials were designed to support regulatory approval in the United States and key global markets. The studies' primary endpoint is the average improvement in total nasal symptom score (TNSS) in weeks four, five and six of treatment. To observe duration of effect after treatment, patients maintained diaries for symptomology over the final four weeks of the ten-week study.
Very good presentation in November of 2006 here to give you more details on the company:
http://www.wsw.com/webcast/rrshq10/clsc.ob/
If the results are good, I expect the share price to at least double from these levels. ($1 - $1.05 currently)
Yucheng Technologies (YTEC) - Update
Yucheng Technologies has just posted their presentation for upcoming conferences. The presentation is available on the SEC site:
http://www.sec.gov/Archives/edgar/data/1356462/000114420407024421/v074666_ex99-1.htm
2 presentations are coming up this week and we could possibly see earnings release as well....
http://www.sec.gov/Archives/edgar/data/1356462/000114420407024421/v074666_ex99-1.htm
2 presentations are coming up this week and we could possibly see earnings release as well....
Wednesday, May 9, 2007
Yucheng Technologies (YTEC) news
More great news from Yucheng Technologies (YTEC) -
Yucheng Technologies Approved for NASDAQ Global Market Listing
Mr. Weidong Hong, CEO of Yucheng, stated: "We are pleased that Yucheng meets the higher standards for listing on the NASDAQ Global Market. This is an important milestone for the company because it will provide increased market visibility and greater access for investors interested in being shareholders."
http://biz.yahoo.com/prnews/070509/cnw032.html?.v=1
This will bring a great exposure to institutions and should generate a lot more interest from individual investors.
Earnings are coming up shortly this month, as well as 2 conferences - one at Roth Capital and Susquehanna Financial Group - both next week.
Yucheng Technologies Approved for NASDAQ Global Market Listing
Mr. Weidong Hong, CEO of Yucheng, stated: "We are pleased that Yucheng meets the higher standards for listing on the NASDAQ Global Market. This is an important milestone for the company because it will provide increased market visibility and greater access for investors interested in being shareholders."
http://biz.yahoo.com/prnews/070509/cnw032.html?.v=1
This will bring a great exposure to institutions and should generate a lot more interest from individual investors.
Earnings are coming up shortly this month, as well as 2 conferences - one at Roth Capital and Susquehanna Financial Group - both next week.
Oncology Med (ONCO.PK) -
$1.28 high from 0.83 original call 2 days later....speculative stock gained over 50% in 2 days....closing recommendation
Conrad Industries - Target reached - $12
Conrad Industries - $12 Target reached. Still a very good company with lots of potential, but original target of $12 is reached. (75% since original recommendation 3 weeks ago).
Monday, May 7, 2007
Oncology Med (ONCO.PK)
Highly speculative stock - Oncology Med Inc.(ONCO.PK):
Here is the recent news:
http://finance.yahoo.com/q?s=onco.pk
May be interesting here at 83 cents...
Oncology Med, Inc. which was formerly known as Vianet Technology Group has changed it name and will now go trade under the symbol ``ONCO''.
Oncology Med's mission is to be a pioneer in the advancement of the treatment of cancers. The Company plans on growing its business through acquisitions in addition to the organic growth of its first acquisition Comprehensive Physics & Regulatory Services, which will now conduct business under the trade name of Oncology Med.
CPRS is a 12-year-old firm that provides specialized internet-based treatment plans and medical physics consulting services for radiation centers. Oncology Med's acquisition of CPRS will provide the foundation for the entity to achieve significant revenue growth. Management believes that the acquisition/merger will provide CPRS with greater access to capital with which it intends to commence enhanced sales and marketing efforts which it believes will lead to greater revenues and profits.
As part of the reorganization, Dr. William Walker, President of CPRS, has become chairman of Oncology Med, Inc. Dr. Walker stated, ``I am very excited that we are a publicly traded company and are able to take advantage of the capital markets to fuel our exciting growth. We believe that with the future hiring of sales personnel our revenue opportunities will increase. Additionally we feel we are going to be able to accomplish potential acquisitions while becoming a vertically integrated oncology company.''
Currently, there are over 2,000 radiation centers in the country providing radiation services to cancer patients. Depending on the type of cancer and condition of a patient, on average, receives approximately 26 treatments during the course of radiation therapy. During the course of treatment, patient records and actual care have to be closely monitored and generally require approximately 5 patient reviews made by a qualified medical physicist. These patient or chart reviews assure proper patient care. In many radiation centers, lack of a full time available physicist can result in less than optimal patient reviews.
CPRS addresses these needs by providing a full range of patient specific radiation service treatment plans in addition to online treatment plans. This solves two key barriers of entry for radiation centers seeking to offer new technology by making available the most advanced treatment methodology to smaller radiation centers without substantial investment for equipment and staff. The Company, therefore, offers the possibility to enable radiation centers to increase revenues and profits while lowering expenses and improving quality.
CPRS operates its remote treatment planning services out of its facility located in Pittsburgh, Pennsylvania. The center houses computer stations with treatment planning software and equipment that receives and sends required patient data and images in accordance with healthcare data security standards. The center is staffed and currently equipped to service substantial additional business volume. Medical Physics services and specialty consulting are also provided at client sites.
THE MARKET -- The radiation oncology market is growing worldwide. Internationally the market is in its infancy. In the U.S. over 5,000,000 Americans have cancer. There are 850,000 new cancer cases diagnosed annually with 60% of all cancer patients being treated by radiation therapy. Radiation centers treat an average of 650 patients annually and smaller radiation centers generate revenues of up to $ 5,000,000 or more.
Dr. Walker is a professional medical physicist with 35 years of experience in clinical practice, research and program management. He holds a B.S. in Civil Engineering from the Virginia Military Institute, an M.S. in Radiation Biophysics from the University of Kansas and a Ph.D. from the University of Florida in Environmental Engineering (Medical Physics). He is certified by the American Board of Health Physics, licensed by the State of Florida as a Therapeutic Radiological Physicist and is a registered Professional Engineer. Dr. Walker headed the U.S. Nuclear Regulatory Commission's medical and academic licensing program and later was the Radiation Safety Officer and Radiation Safety Program Director for the National Institute of Health. He is the author of numerous papers on medical and health physics and currently serves as an officer and member of the Board of Directors of Advanced Oncology Network, Inc. He is also a member of the Board of Directors of Abundant Blessings (Jamaica) Cancer Treatment Centre, Ltd. and Universal Healthcare Management Systems.
About Oncology Med, Inc.
Oncology Med is a public company engaged in the fulfillment of services related to the treatment of various cancers. It currently provides analysis and design of radiation treatment plans in order for radiation oncologists to administer radiation plans to cancer patients. Current services facilitate radiation treatment programs ranging from external beam radiation to more advanced radiation treatment technologies.
More information about Oncology Med, Inc. can be found at http://www.oncologymed.com
Here is the recent news:
http://finance.yahoo.com/q?s=onco.pk
May be interesting here at 83 cents...
Oncology Med, Inc. which was formerly known as Vianet Technology Group has changed it name and will now go trade under the symbol ``ONCO''.
Oncology Med's mission is to be a pioneer in the advancement of the treatment of cancers. The Company plans on growing its business through acquisitions in addition to the organic growth of its first acquisition Comprehensive Physics & Regulatory Services, which will now conduct business under the trade name of Oncology Med.
CPRS is a 12-year-old firm that provides specialized internet-based treatment plans and medical physics consulting services for radiation centers. Oncology Med's acquisition of CPRS will provide the foundation for the entity to achieve significant revenue growth. Management believes that the acquisition/merger will provide CPRS with greater access to capital with which it intends to commence enhanced sales and marketing efforts which it believes will lead to greater revenues and profits.
As part of the reorganization, Dr. William Walker, President of CPRS, has become chairman of Oncology Med, Inc. Dr. Walker stated, ``I am very excited that we are a publicly traded company and are able to take advantage of the capital markets to fuel our exciting growth. We believe that with the future hiring of sales personnel our revenue opportunities will increase. Additionally we feel we are going to be able to accomplish potential acquisitions while becoming a vertically integrated oncology company.''
Currently, there are over 2,000 radiation centers in the country providing radiation services to cancer patients. Depending on the type of cancer and condition of a patient, on average, receives approximately 26 treatments during the course of radiation therapy. During the course of treatment, patient records and actual care have to be closely monitored and generally require approximately 5 patient reviews made by a qualified medical physicist. These patient or chart reviews assure proper patient care. In many radiation centers, lack of a full time available physicist can result in less than optimal patient reviews.
CPRS addresses these needs by providing a full range of patient specific radiation service treatment plans in addition to online treatment plans. This solves two key barriers of entry for radiation centers seeking to offer new technology by making available the most advanced treatment methodology to smaller radiation centers without substantial investment for equipment and staff. The Company, therefore, offers the possibility to enable radiation centers to increase revenues and profits while lowering expenses and improving quality.
CPRS operates its remote treatment planning services out of its facility located in Pittsburgh, Pennsylvania. The center houses computer stations with treatment planning software and equipment that receives and sends required patient data and images in accordance with healthcare data security standards. The center is staffed and currently equipped to service substantial additional business volume. Medical Physics services and specialty consulting are also provided at client sites.
THE MARKET -- The radiation oncology market is growing worldwide. Internationally the market is in its infancy. In the U.S. over 5,000,000 Americans have cancer. There are 850,000 new cancer cases diagnosed annually with 60% of all cancer patients being treated by radiation therapy. Radiation centers treat an average of 650 patients annually and smaller radiation centers generate revenues of up to $ 5,000,000 or more.
Dr. Walker is a professional medical physicist with 35 years of experience in clinical practice, research and program management. He holds a B.S. in Civil Engineering from the Virginia Military Institute, an M.S. in Radiation Biophysics from the University of Kansas and a Ph.D. from the University of Florida in Environmental Engineering (Medical Physics). He is certified by the American Board of Health Physics, licensed by the State of Florida as a Therapeutic Radiological Physicist and is a registered Professional Engineer. Dr. Walker headed the U.S. Nuclear Regulatory Commission's medical and academic licensing program and later was the Radiation Safety Officer and Radiation Safety Program Director for the National Institute of Health. He is the author of numerous papers on medical and health physics and currently serves as an officer and member of the Board of Directors of Advanced Oncology Network, Inc. He is also a member of the Board of Directors of Abundant Blessings (Jamaica) Cancer Treatment Centre, Ltd. and Universal Healthcare Management Systems.
About Oncology Med, Inc.
Oncology Med is a public company engaged in the fulfillment of services related to the treatment of various cancers. It currently provides analysis and design of radiation treatment plans in order for radiation oncologists to administer radiation plans to cancer patients. Current services facilitate radiation treatment programs ranging from external beam radiation to more advanced radiation treatment technologies.
More information about Oncology Med, Inc. can be found at http://www.oncologymed.com
Thursday, April 26, 2007
Yucheng Technologies Update (YTEC) - Fund Purchase
Well, Yucheng Technologies (YTEC) is breaking to new highs. Volume has been increasing lately. And today it a big fund purchase by Globis Capital Partners -
one of Japan's leading venture capital (VC) firms with JPN 21 billion yen under management:
http://www.globiscapital.co.jp/en/about/index.html
Here is the filing: (they bought 5.8% of O/S - 565k shares)
http://www.sec.gov/Archives/edgar/data/1268460/000091476007000069/p75621_13g2.htm
Also, huge block in warrants today - 310k
Lots of activity lately in warrants (YTECW)
one of Japan's leading venture capital (VC) firms with JPN 21 billion yen under management:
http://www.globiscapital.co.jp/en/about/index.html
Here is the filing: (they bought 5.8% of O/S - 565k shares)
http://www.sec.gov/Archives/edgar/data/1268460/000091476007000069/p75621_13g2.htm
Also, huge block in warrants today - 310k
Lots of activity lately in warrants (YTECW)
Tuesday, April 10, 2007
Conrad Industries (CNRD.PK)
Highly profitable company reported excellent earnings today.
http://www.pinksheets.com/pdfservlet?id=10409
Excerpt from this release:
REPORT TO OUR FELLOW SHAREHOLDERS
The positive changes we began to experience in the latter part of 2005 continued during 2006 as we completed the year with record
revenue, net income, and backlog, and a much improved balance sheet. At the same time our workforce achieved an outstanding
safety record.
Although, between 2002 and the first half of 2005 we experienced a difficult Gulf of Mexico energy marine construction and repair
market, we have seen in 2006 a major increase in projects for other commercial customers as well as an increase in energy projects.
Because much of our repair work comes from the Gulf of Mexico oil and gas industry, improved conditions in that industry have
positively affected our repair segment. For 2006, 45.5% of total revenue was energy related, 38.5% was other commercial and
16.0% was government. This compares to 22.6% energy, 38.2% other commercial and 39.2% government in 2005.
During 2006, we added $113.1 million of new contracts to our new construction segment, of which $42.3 million was related to the
oil and gas industry and $70.8 million was related to other commercial projects, generally attributable to increased spending for
construction activities, double skin tank barges, and harbor tugs. As a result of this increased activity, margins have improved on
recent new construction contracts. Our backlog as of December 31, 2006 was approximately $84.5 million compared to $35.4
million as of December 31, 2005. At December 31, 2006, 63.3% of our vessel construction backlog was from other commercial
contracts, 31.7% was from energy related customers and 5.0% was from government contracts. This compares to backlog at
December 31, 2005 of 38.4% other commercial, 0.0% energy, and 61.6% government.
Our construction projects in progress as of December 31, 2006 consisted of 34 vessels which includes two 124-foot towboats, five
double-skin tank barges, an ST tug, three z-drive tugs, a 200 class liftboat, five 175 class liftboats, a 3300 hp steel towboat, and
sixteen barges ranging in size from 120 feet to 160 feet. Our customers comprise a very diverse group that crosses a wide range of
businesses including the energy sector, dredging, construction, towing, and bunkering markets, as well as the US Army Corps of
Engineers.
During 2006 we delivered 30 vessel construction jobs of various types and sizes which are the most jobs delivered in one year by
our Company. We delivered nine deck barges, an anchor scow, four crane barges, two inland double skin tank barges, four spud
barges, three double skin tank barges, three landing barges, a fish stocking vessel, an aluminum fire and patrol boat, and two inland
tow boats.
During 2006, revenue increased 88.4% to $121.8 million from $64.7 million in 2005. The increase in revenue for the current year is
primarily a result of the overall increase in production hours. Vessel construction hours increased 73.0% compared to 2005, while
repair and conversion hours increased 125.2% compared to 2005.
We reported net income of $5.9 million and net income per diluted share of $0.81 for the year ended December 31, 2006 compared
to net income of $111,000 and income per diluted share of $0.02 for the year ended December 31, 2005. This increase in net income
is primarily the result of a very strong market for our repair services.
We revised our loan agreement and extended our maturity date to 2011 and increased our line of credit to $10 million. We reduced
our total loan balance from $18.3 million at December 31, 2005 to $10.2 million at December 31, 2006 while increasing our net
working capital from $6.3 million at December 31, 2005 to $7.6 million at December 31, 2006.
Our Company is very different today compared to a few years ago. We have a more diversified customer and product mix. We’ve
expanded our capacity with the investments that we’ve made and we’ve grown our workforce and management in order to handle
the additional production levels. With an improved marine environment, the strong support of our loyal employees, customers and
suppliers, our record new construction backlog and stronger financial condition, we are optimistic about our continuing ability to
increase gross profit and the bottom line in 2007, leading to an increase in shareholder value.
To sum it all up:
Net income for 2006 is 0.81 compared to 0.02 for 2005 (5.9 mil vs 111k)
Revenues increased 88.4% to $121.8 million from $64.7 million in 2005
EPS progression through 2006 is as following:
.13, .17, .19 and .32 for Q1 through Q4, respectively. Earnings are fully taxed and diluted.
Backlog up to $85M versus $35M yoy. And that's for new constructions...
Doesn't even include repair revenues (which account for 40% of total revenues)
Could be at least $1.2 in earnings for 2007 for $7 dollar stock....
At highly convservative PE of 10, this should be at least $12 dollar stock....
Add to this, low O/S and float (momo)
O/S is only 7.28 mil
Last, but not least, it's a hurricane stock with potentially big hurricane season on the way.
Profile:
Conrad Industries, Inc. engages in the construction, conversion, and repair of various marine vessels for commercial and governmental customers in the United States. It also engages in the fabrication of modular components of offshore drilling rigs; and floating, production, storage, and offloading vessels. The company constructs various steel and aluminum marine vessels, including large and small deck cargo barges, single and double hull tank barges, lift boats, push boats, towboats, offshore tugboats, and offshore supply vessels. Its conversion and repair of steel and aluminum marine vessels consist of lengthening the mid-bodies of vessels, modifying vessels to permit their use for a different type of activity, and other modifications to increase the cargo carrying capacity or functionality of a vessel. The company operates four shipyards in South Louisiana and Texas with direct access to the Gulf of Mexico. Conrad Industries was founded in 1948 and is based in Morgan City, Louisiana.
They used to be listed on Nasdaq, but were not profitable, and chose to delist in 2005 due to Sarbanes Oxley expenses.....
Now, that they are highly profitable, they may try Nasdaq again, in my opinion.
Once again - highly profitable, low float, low O/S, hurricane momo, unknown play...just repoted huge earnings.
References:
http://www.pinksheets.com/quote/finance.jsp?symbol=CNRD
http://www.pinksheets.com/pdfservlet?id=10409
Excerpt from this release:
REPORT TO OUR FELLOW SHAREHOLDERS
The positive changes we began to experience in the latter part of 2005 continued during 2006 as we completed the year with record
revenue, net income, and backlog, and a much improved balance sheet. At the same time our workforce achieved an outstanding
safety record.
Although, between 2002 and the first half of 2005 we experienced a difficult Gulf of Mexico energy marine construction and repair
market, we have seen in 2006 a major increase in projects for other commercial customers as well as an increase in energy projects.
Because much of our repair work comes from the Gulf of Mexico oil and gas industry, improved conditions in that industry have
positively affected our repair segment. For 2006, 45.5% of total revenue was energy related, 38.5% was other commercial and
16.0% was government. This compares to 22.6% energy, 38.2% other commercial and 39.2% government in 2005.
During 2006, we added $113.1 million of new contracts to our new construction segment, of which $42.3 million was related to the
oil and gas industry and $70.8 million was related to other commercial projects, generally attributable to increased spending for
construction activities, double skin tank barges, and harbor tugs. As a result of this increased activity, margins have improved on
recent new construction contracts. Our backlog as of December 31, 2006 was approximately $84.5 million compared to $35.4
million as of December 31, 2005. At December 31, 2006, 63.3% of our vessel construction backlog was from other commercial
contracts, 31.7% was from energy related customers and 5.0% was from government contracts. This compares to backlog at
December 31, 2005 of 38.4% other commercial, 0.0% energy, and 61.6% government.
Our construction projects in progress as of December 31, 2006 consisted of 34 vessels which includes two 124-foot towboats, five
double-skin tank barges, an ST tug, three z-drive tugs, a 200 class liftboat, five 175 class liftboats, a 3300 hp steel towboat, and
sixteen barges ranging in size from 120 feet to 160 feet. Our customers comprise a very diverse group that crosses a wide range of
businesses including the energy sector, dredging, construction, towing, and bunkering markets, as well as the US Army Corps of
Engineers.
During 2006 we delivered 30 vessel construction jobs of various types and sizes which are the most jobs delivered in one year by
our Company. We delivered nine deck barges, an anchor scow, four crane barges, two inland double skin tank barges, four spud
barges, three double skin tank barges, three landing barges, a fish stocking vessel, an aluminum fire and patrol boat, and two inland
tow boats.
During 2006, revenue increased 88.4% to $121.8 million from $64.7 million in 2005. The increase in revenue for the current year is
primarily a result of the overall increase in production hours. Vessel construction hours increased 73.0% compared to 2005, while
repair and conversion hours increased 125.2% compared to 2005.
We reported net income of $5.9 million and net income per diluted share of $0.81 for the year ended December 31, 2006 compared
to net income of $111,000 and income per diluted share of $0.02 for the year ended December 31, 2005. This increase in net income
is primarily the result of a very strong market for our repair services.
We revised our loan agreement and extended our maturity date to 2011 and increased our line of credit to $10 million. We reduced
our total loan balance from $18.3 million at December 31, 2005 to $10.2 million at December 31, 2006 while increasing our net
working capital from $6.3 million at December 31, 2005 to $7.6 million at December 31, 2006.
Our Company is very different today compared to a few years ago. We have a more diversified customer and product mix. We’ve
expanded our capacity with the investments that we’ve made and we’ve grown our workforce and management in order to handle
the additional production levels. With an improved marine environment, the strong support of our loyal employees, customers and
suppliers, our record new construction backlog and stronger financial condition, we are optimistic about our continuing ability to
increase gross profit and the bottom line in 2007, leading to an increase in shareholder value.
To sum it all up:
Net income for 2006 is 0.81 compared to 0.02 for 2005 (5.9 mil vs 111k)
Revenues increased 88.4% to $121.8 million from $64.7 million in 2005
EPS progression through 2006 is as following:
.13, .17, .19 and .32 for Q1 through Q4, respectively. Earnings are fully taxed and diluted.
Backlog up to $85M versus $35M yoy. And that's for new constructions...
Doesn't even include repair revenues (which account for 40% of total revenues)
Could be at least $1.2 in earnings for 2007 for $7 dollar stock....
At highly convservative PE of 10, this should be at least $12 dollar stock....
Add to this, low O/S and float (momo)
O/S is only 7.28 mil
Last, but not least, it's a hurricane stock with potentially big hurricane season on the way.
Profile:
Conrad Industries, Inc. engages in the construction, conversion, and repair of various marine vessels for commercial and governmental customers in the United States. It also engages in the fabrication of modular components of offshore drilling rigs; and floating, production, storage, and offloading vessels. The company constructs various steel and aluminum marine vessels, including large and small deck cargo barges, single and double hull tank barges, lift boats, push boats, towboats, offshore tugboats, and offshore supply vessels. Its conversion and repair of steel and aluminum marine vessels consist of lengthening the mid-bodies of vessels, modifying vessels to permit their use for a different type of activity, and other modifications to increase the cargo carrying capacity or functionality of a vessel. The company operates four shipyards in South Louisiana and Texas with direct access to the Gulf of Mexico. Conrad Industries was founded in 1948 and is based in Morgan City, Louisiana.
They used to be listed on Nasdaq, but were not profitable, and chose to delist in 2005 due to Sarbanes Oxley expenses.....
Now, that they are highly profitable, they may try Nasdaq again, in my opinion.
Once again - highly profitable, low float, low O/S, hurricane momo, unknown play...just repoted huge earnings.
References:
http://www.pinksheets.com/quote/finance.jsp?symbol=CNRD
Sunday, April 8, 2007
Yucheng Technologies (YTEC) - Update on Financials
Update on financials:
Number of shares immediately post transaction:
9.5mn shares
6.9mn warrants outstanding
From the company presentation:
Cash per share ($1.78 - assumes $17mn cash and 9.5mn shares)
2005 Earnings per share based on 8.8mn shares (excluding 773,000 shares
tied to performance in 2006) is $0.36
2006 Earnings per share - $0.64; management hits and exceeds the net profits target
EPS growth if management hits 40% growth is about 30% for common
shareholders (before CUAQ warrant conversion)
Highly Incentivized Management
Cash Bonus for Share Price Increase:
- US$5 million bonus if CUAQ receives an aggregate of US$34.5 million in gross proceeds in additional financing (i.e. successful warrant exercising if share price is maintained at US$8.50)
- US$1 million bonus if share price (at least 60 consecutive trading days) is above US$10.00 in 2006
- US$2.0 million if Share Price Average is above $12.00 in 2007
- US$3.0 million if Share Price Average is above $14.40 in 2008
- Total cash bonus will not exceed US$10 million
Share Bonus for Earnings Growth:
- 952,832 shares each year from 2007-2010 for meeting or exceeding 40% annual growth in net profits:
Year ending December 31 Net Profit
2007 US$8.5 million
2008 US$11.9 million
2009 US$16.7 million
2010 US$23.3 million
- All-or-nothing share bonus plan
Monday, April 2, 2007
New Interview with CFO on Wall St. Reporter
Interview with CFO (Peter Li) has just been posted on Wall St. Reporter....
http://www.wallstreetreporter.com/profile.php?id=23408&a=1
In this interview, Peter Li, CFO of Yucheng Technologies, talks about the company, its prospects and future.
http://www.wallstreetreporter.com/profile.php?id=23408&a=1
In this interview, Peter Li, CFO of Yucheng Technologies, talks about the company, its prospects and future.
Sunday, April 1, 2007
Yucheng Technologies (YTEC)
Today I'd like to summarize prevous DD on Yucheng Technologies - a company with great potential - (now trading on Nasdaq as YTEC with warrants YTECW)
It's a new Chinese entity combined from a couple of companies purchased by China Unistone and renamed to Yucheng Technologies.
Here is a little on the deal: China Unistone was organized to effect a business combination with an operating business that is based in China and that has significant growth potential. After the consummation of the stock purchase and redomestication merger, the operating companies of Yucheng will be Sihitech, and its subsidiaries, and e-Channels, all of which are located in China. Together these companies will provide IT services and system integration, web banking, and electronic multi-channel software and solutions to the Chinese banking industry. These companies, founded in the late 1990's have, collectively, demonstrated significant growth since commencing operations. China Unistone believes that the operating companies have the infrastructure in place to expand their business through cross selling, increase their customer base, and develop new services and products. As a result, China Unistone believes that a business combination with Sihitech and e-Channels will provide China Unistone stockholders with an opportunity to participate in a combined company with significant growth potential. The combined company conists of Sihitech and e-Channels companies. Here is something for 2005: In 2005, Sihitech and e-Channels had combined revenues of $25.2 million and total net income of $3.1 million. Post closing, Yucheng will have six operating subsidiaries which include Sihitech, e-Channels, Beijing Sihitech Software, Shanghai Sihitech, Shanghai Sihitech Software and Guangzhou Sihitech. There also will be two representative offices in Fuzhou and Xian. The combined company will have a combined employee staff of approximately 550 employees
Lots of info on it can be found here: http://www.secinfo.com/dVut2.vbdf.htm
Now to the profile:
Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 600 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
Earnings:
Latest 2006 Annual Results highlights (released 2/16/07):
Yucheng Technologies Limited Releases its Preliminary Unaudited Annual Results for its 2006 Fiscal Year Friday February 16, 7:00 am ET BEIJING, Feb. 16 /Xinhua-PRNewswire/ -- Yucheng Technologies Ltd. (OTC Bulletin Board: YCHTF - News; OTC Bulletin Board: YCHWF - News) is a leading IT solutions and services provider to China's banking industry. Through its operating subsidiaries, the company provides a comprehensive suite of products and services to China's banking industry, from system integration, IT consulting, software solutions and outsourced operations, of which its web banking solution enjoys 70% market share on an end-user basis. Since the merger agreement that was signed on December 20, 2005 between the 2 Chinese operating companies, Beijing Sihitech and e-Channels and the OTCBB listed shell company China Unistone, the operating companies have been consolidating its operations to become more efficient in its service offerings and draw on its strengths to expand its product offerings and client base. To date, the company sees a positive trend in its operations due to the consolidation and growth. Based on the preliminary unaudited financial statements of its Chinese operating companies for the full year 2006, excluding the merger transaction costs and the shell company's result, Yucheng management is pleased to announce that the Chinese operating companies achieved 57% growth in revenue to RMB 310.6 MN (US$ 39.8) and 94% growth of net income to RMB 47.7 MN (US$ 6.1 MN). Of the total revenue, system integration, IT consulting, and software and outsourced businesses contributes RMB 197.8 MN (US$25.3MN), RMB 62MN (US$7.9MN), and RMB 50.8MN (US$6.6MN) respectively. The Yucheng Chinese operating company achieved gross margin of RMB 87MN (US$11.1MN), of which system integration, IT consulting, and software and outsourced operation contributes RMB 24.9MN (US$3.2MN), RMB 30.7MN (US$3.9MN), and 31.4MN (US$4MN) respectively. Mr. Weidong Hong, the CEO of Yucheng Technologies stated "We continue to see the benefits from the combination of Sihitech and e-Channels, as well as the latest acquisition of Sunrisk, through our increased resources, including staffing, product offering diversity and capital. We believe that 2006 is a stellar year on a combined basis of the Chinese operating companies, evidenced by a solid step forward in the migration up the product value chain to high- growth and high-margin non-system-integration businesses. Looking forward, we believe that 2007 will also be a successful year as the company draws on its resources to expand its client base and continues to leverage our combined and newly acquired companies' cross-selling opportunities to gain market share." The audited financial statements will be included in the 20-F form required for Yucheng to file by June 30, 2007.
Summary:
It's a profitable Chinese company with significant growth and large profits margins.
They have only 9.5m O/S with 3.45m in float. And already booked 6.1m in net income for 2006.
Plus, they recently purchased another profitable company: http://biz.yahoo.com/bw/070122/20070122006146.html?.v=1
BEIJING--(BUSINESS WIRE)--Yucheng Technologies Ltd. (YCHTF.OB, YCHWF.OB) today announced that its wholly owned subsidiary, Beijing Yucheng Technologies, signed a stock purchase agreement to acquire 100% ownership of Sunrisk Information Technology Ltd., a Beijing based risk management solution and service provider to Chinese banks. The consideration for the acquisition of the stock of Sunrisk Information Technology Ltd. was all cash deal which was partially paid at the time of acquisition, with the balance due on January 31, 2007 and March 31, 2008 based on the 2006 and 2007 results of operations. For 2006, Sunrisk's unaudited revenue was approximately US$ 1,536,000 (RMB 12 million) and unaudited net profit was US$ 960,000 (RMB 7.5 million) under US GAAP.
And finally, they began trading on Nasdaq 3 weeks ago.
Their warrants (YTECW) could be very rewarding with exercise price of $5 and expiration in 11/2008
It's a new Chinese entity combined from a couple of companies purchased by China Unistone and renamed to Yucheng Technologies.
Here is a little on the deal: China Unistone was organized to effect a business combination with an operating business that is based in China and that has significant growth potential. After the consummation of the stock purchase and redomestication merger, the operating companies of Yucheng will be Sihitech, and its subsidiaries, and e-Channels, all of which are located in China. Together these companies will provide IT services and system integration, web banking, and electronic multi-channel software and solutions to the Chinese banking industry. These companies, founded in the late 1990's have, collectively, demonstrated significant growth since commencing operations. China Unistone believes that the operating companies have the infrastructure in place to expand their business through cross selling, increase their customer base, and develop new services and products. As a result, China Unistone believes that a business combination with Sihitech and e-Channels will provide China Unistone stockholders with an opportunity to participate in a combined company with significant growth potential. The combined company conists of Sihitech and e-Channels companies. Here is something for 2005: In 2005, Sihitech and e-Channels had combined revenues of $25.2 million and total net income of $3.1 million. Post closing, Yucheng will have six operating subsidiaries which include Sihitech, e-Channels, Beijing Sihitech Software, Shanghai Sihitech, Shanghai Sihitech Software and Guangzhou Sihitech. There also will be two representative offices in Fuzhou and Xian. The combined company will have a combined employee staff of approximately 550 employees
Lots of info on it can be found here: http://www.secinfo.com/dVut2.vbdf.htm
Now to the profile:
Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 600 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
Earnings:
Latest 2006 Annual Results highlights (released 2/16/07):
- 57% growth in revenue to RMB 310.6 MN (US$ 39.8)
- 94% growth of net income to RMB 47.7 MN (US$ 6.1 MN).
- profit margins are 27.9%
- net income is 0.64
Notice the company was trading on OTC BB then.
http://biz.yahoo.com/prnews/070216/cnf002.html?.v=1Yucheng Technologies Limited Releases its Preliminary Unaudited Annual Results for its 2006 Fiscal Year Friday February 16, 7:00 am ET BEIJING, Feb. 16 /Xinhua-PRNewswire/ -- Yucheng Technologies Ltd. (OTC Bulletin Board: YCHTF - News; OTC Bulletin Board: YCHWF - News) is a leading IT solutions and services provider to China's banking industry. Through its operating subsidiaries, the company provides a comprehensive suite of products and services to China's banking industry, from system integration, IT consulting, software solutions and outsourced operations, of which its web banking solution enjoys 70% market share on an end-user basis. Since the merger agreement that was signed on December 20, 2005 between the 2 Chinese operating companies, Beijing Sihitech and e-Channels and the OTCBB listed shell company China Unistone, the operating companies have been consolidating its operations to become more efficient in its service offerings and draw on its strengths to expand its product offerings and client base. To date, the company sees a positive trend in its operations due to the consolidation and growth. Based on the preliminary unaudited financial statements of its Chinese operating companies for the full year 2006, excluding the merger transaction costs and the shell company's result, Yucheng management is pleased to announce that the Chinese operating companies achieved 57% growth in revenue to RMB 310.6 MN (US$ 39.8) and 94% growth of net income to RMB 47.7 MN (US$ 6.1 MN). Of the total revenue, system integration, IT consulting, and software and outsourced businesses contributes RMB 197.8 MN (US$25.3MN), RMB 62MN (US$7.9MN), and RMB 50.8MN (US$6.6MN) respectively. The Yucheng Chinese operating company achieved gross margin of RMB 87MN (US$11.1MN), of which system integration, IT consulting, and software and outsourced operation contributes RMB 24.9MN (US$3.2MN), RMB 30.7MN (US$3.9MN), and 31.4MN (US$4MN) respectively. Mr. Weidong Hong, the CEO of Yucheng Technologies stated "We continue to see the benefits from the combination of Sihitech and e-Channels, as well as the latest acquisition of Sunrisk, through our increased resources, including staffing, product offering diversity and capital. We believe that 2006 is a stellar year on a combined basis of the Chinese operating companies, evidenced by a solid step forward in the migration up the product value chain to high- growth and high-margin non-system-integration businesses. Looking forward, we believe that 2007 will also be a successful year as the company draws on its resources to expand its client base and continues to leverage our combined and newly acquired companies' cross-selling opportunities to gain market share." The audited financial statements will be included in the 20-F form required for Yucheng to file by June 30, 2007.
Summary:
It's a profitable Chinese company with significant growth and large profits margins.
They have only 9.5m O/S with 3.45m in float. And already booked 6.1m in net income for 2006.
Plus, they recently purchased another profitable company: http://biz.yahoo.com/bw/070122/20070122006146.html?.v=1
BEIJING--(BUSINESS WIRE)--Yucheng Technologies Ltd. (YCHTF.OB, YCHWF.OB) today announced that its wholly owned subsidiary, Beijing Yucheng Technologies, signed a stock purchase agreement to acquire 100% ownership of Sunrisk Information Technology Ltd., a Beijing based risk management solution and service provider to Chinese banks. The consideration for the acquisition of the stock of Sunrisk Information Technology Ltd. was all cash deal which was partially paid at the time of acquisition, with the balance due on January 31, 2007 and March 31, 2008 based on the 2006 and 2007 results of operations. For 2006, Sunrisk's unaudited revenue was approximately US$ 1,536,000 (RMB 12 million) and unaudited net profit was US$ 960,000 (RMB 7.5 million) under US GAAP.
And finally, they began trading on Nasdaq 3 weeks ago.
Their warrants (YTECW) could be very rewarding with exercise price of $5 and expiration in 11/2008
Wednesday, March 14, 2007
Yucheng Technologies - Nasdaq Listing
HRBN #2?
Yucheng Technologies Ltd. Announces its Listing on the NASDAQ Capital Market
Wednesday March 14, 10:04 am ET
http://biz.yahoo.com/prnews/070314/cnw010.html?.v=27
BEIJING, March 14 /Xinhua-PRNewswire/ -- Yucheng Technologies Ltd. today announced that its common stock and warrants have commenced trading on NASDAQ Capital Market under the symbols YTEC and YTECW respectively, effective today -- Wednesday, March 14, 2007.
Yucheng Technologies Ltd., a leading IT solution and services provider to the local Chinese banking industry, is the combination of Beijing Sihitech Technology Co., Ltd., Beijing e-Channels Technology Co., Ltd., and China Unistone Acquisition Corporation. It was previously traded on the OTCBB under the symbols YCHTF.OB and YCHWF.OB upon the consummation of its merger on November 24, 2006.
Yucheng Technologies Ltd. is the first local Chinese IT solution and services provider to the Chinese banking industry to be listed on NASDAQ. Weidong Hong, CEO of Yucheng Technologies Ltd., stated: "We are thrilled to be listed on the NASDAQ Capital Market, which brings international public company prestige to our existing market leadership position, our strong local management team, and proven track record in the banking IT segment in China. Being a NASDAQ listed company, Yucheng will be in an even better position to be the preferred and trusted local choice to provide the IT solutions and services that local Chinese banks increasingly need to expand their capabilities and enhance their competitiveness in an increasingly open financial services industry."
About Yucheng Technologies Ltd.
Yucheng Technologies Ltd. (Nasdaq: YTEC; YTECW) is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xi'an, Xiamen, and Chengdu. Yucheng currently has more than 660 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks ranging from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top local commercial banks in China as its customers, and is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Most recently, Yucheng made a strategic investment to provide risk management services to meet its clients' growing demand in this area driven by its profit conscientiousness and Basil Accord II compliance. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
http://biz.yahoo.com/prnews/070314/cnw010.html?.v=27
Yucheng Technologies Ltd. Announces its Listing on the NASDAQ Capital Market
Wednesday March 14, 10:04 am ET
http://biz.yahoo.com/prnews/070314/cnw010.html?.v=27
BEIJING, March 14 /Xinhua-PRNewswire/ -- Yucheng Technologies Ltd. today announced that its common stock and warrants have commenced trading on NASDAQ Capital Market under the symbols YTEC and YTECW respectively, effective today -- Wednesday, March 14, 2007.
Yucheng Technologies Ltd., a leading IT solution and services provider to the local Chinese banking industry, is the combination of Beijing Sihitech Technology Co., Ltd., Beijing e-Channels Technology Co., Ltd., and China Unistone Acquisition Corporation. It was previously traded on the OTCBB under the symbols YCHTF.OB and YCHWF.OB upon the consummation of its merger on November 24, 2006.
Yucheng Technologies Ltd. is the first local Chinese IT solution and services provider to the Chinese banking industry to be listed on NASDAQ. Weidong Hong, CEO of Yucheng Technologies Ltd., stated: "We are thrilled to be listed on the NASDAQ Capital Market, which brings international public company prestige to our existing market leadership position, our strong local management team, and proven track record in the banking IT segment in China. Being a NASDAQ listed company, Yucheng will be in an even better position to be the preferred and trusted local choice to provide the IT solutions and services that local Chinese banks increasingly need to expand their capabilities and enhance their competitiveness in an increasingly open financial services industry."
About Yucheng Technologies Ltd.
Yucheng Technologies Ltd. (Nasdaq: YTEC; YTECW) is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xi'an, Xiamen, and Chengdu. Yucheng currently has more than 660 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks ranging from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top local commercial banks in China as its customers, and is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Most recently, Yucheng made a strategic investment to provide risk management services to meet its clients' growing demand in this area driven by its profit conscientiousness and Basil Accord II compliance. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
http://biz.yahoo.com/prnews/070314/cnw010.html?.v=27
Thursday, March 8, 2007
Harbin Electric continues to deliver. Earnings are out and they look good. I expect the stock to hit high teens in less than 6 months. (it already gained over 60% from original DD at $8.10)
4Q06 Revenues Increase 66.9% to $12.0 Million
Fiscal 2006 Revenues Increase 70.9% to $40.4 million
http://biz.yahoo.com/prnews/070308/cnw007x.html?.v=1
Net Income for 2006 increased to $18.4 million, or $1.01 per diluted share, compared to $10.0 million, or $0.67 per diluted share, for 2005. This increase was driven mainly by increased operating income and the non cash gain of $6.4 million, or $0.35 per diluted share, included for the change in fair value of warrants.Our total fully diluted share count at the end of 2006 was 18,306,569 compared to 15,143,891 at the end of 2005. The increase was driven by warrants granted to investors and options granted to employees during 2006.
Highlights for the Fiscal Year 2006 include:
- Entering into a joint research and development agreementwith the Institute of Electrical Engineering of the ChineseAcademy of Sciences ("IEECAS") to produce a train andsystem to be tested at the Beijing Airport railway line inthe People's Republic of China by the end of 2008;
- Closing of a US$50.0 million debt financing with CitadelEquity Fund Ltd. and Merrill Lynch International;
- Strengthening of our Board of Directors by adding 3 newindependent board members;
- Commenced construction of new manufacturing facility in theShanghai Zhuqiao Airport Industrial Zone focused onautomobile market.
Tuesday, February 6, 2007
Yucheng Technologies (YCHTF.OB)
Potential long term stock - Yucheng Technologies. YCHTF.OB (has warrants YCHWF.OB, which I like more).
Lots of info on it can be found here:
http://www.secinfo.com/dVut2.vbdf.htm
Basically, it's a new Chinese entity combined from a couple of companies purchased by China Unistone and renamed to Yucheng Technologies.
Here is a little on the deal:
China Unistone was organized to effect a business combination with an operating business that is based in China and that has significant growth potential. After the consummation of the stock purchase and redomestication merger, the operating companies of Yucheng will be Sihitech, and its subsidiaries, and e-Channels, all of which are located in China. Together these companies will provide IT services and system integration, web banking, and electronic multi-channel software and solutions to the Chinese banking industry. These companies, founded in the late 1990's have, collectively, demonstrated significant growth since commencing operations. China Unistone believes that the operating companies have the infrastructure in place to expand their business through cross selling, increase their customer base, and develop new services and products. As a result, China Unistone believes that a business combination with Sihitech and e-Channels will provide China Unistone stockholders with an opportunity to participate in a combined company with significant growth potential.
The combined company conists of Sihitech and e-Channels companies. Here is something for 2005:
In 2005, Sihitech and e-Channels had combined revenues of $25.2 million and total net income of $3.1 million. Post closing, Yucheng will have six operating subsidiaries which include Sihitech, e-Channels, Beijing Sihitech Software, Shanghai Sihitech, Shanghai Sihitech Software and Guangzhou Sihitech. There also will be two representative offices in Fuzhou and Xian. The combined company will have a combined employee staff of approximately 550 employees.
It's a profitable entity with significant growth and huge profits margins. (read SEC)
Their business plan is to hit these profits (not revenues):
2007 $ 8,500,000
2008 $ 11,900,000
2009 $ 16,700,000
2010 $ 23,300,000
They have 9.5m O/S with a lot less in float. And already 3.2m in profits. Plus, they just purchased another profitable company:
http://biz.yahoo.com/bw/070122/20070122006146.html?.v=1
BEIJING--(BUSINESS WIRE)--Yucheng Technologies Ltd. (YCHTF.OB, YCHWF.OB) today announced that its wholly owned subsidiary, Beijing Yucheng Technologies, signed a stock purchase agreement to acquire 100% ownership of Sunrisk Information Technology Ltd., a Beijing based risk management solution and service provider to Chinese banks. The consideration for the acquisition of the stock of Sunrisk Information Technology Ltd. was all cash deal which was partially paid at the time of acquisition, with the balance due on January 31, 2007 and March 31, 2008 based on the 2006 and 2007 results of operations. For 2006, Sunrisk's unaudited revenue was approximately US$ 1,536,000 (RMB 12 million) and unaudited net profit was US$ 960,000 (RMB 7.5 million) under US GAAP.
So, here is what Yucheng does:
Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 600 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
Finally, I believe they applied for Nasdaq....according to SEC documents...I like the warrants (strike price is $5, expiration - 11/2008
Lots of info on it can be found here:
http://www.secinfo.com/dVut2.vbdf.htm
Basically, it's a new Chinese entity combined from a couple of companies purchased by China Unistone and renamed to Yucheng Technologies.
Here is a little on the deal:
China Unistone was organized to effect a business combination with an operating business that is based in China and that has significant growth potential. After the consummation of the stock purchase and redomestication merger, the operating companies of Yucheng will be Sihitech, and its subsidiaries, and e-Channels, all of which are located in China. Together these companies will provide IT services and system integration, web banking, and electronic multi-channel software and solutions to the Chinese banking industry. These companies, founded in the late 1990's have, collectively, demonstrated significant growth since commencing operations. China Unistone believes that the operating companies have the infrastructure in place to expand their business through cross selling, increase their customer base, and develop new services and products. As a result, China Unistone believes that a business combination with Sihitech and e-Channels will provide China Unistone stockholders with an opportunity to participate in a combined company with significant growth potential.
The combined company conists of Sihitech and e-Channels companies. Here is something for 2005:
In 2005, Sihitech and e-Channels had combined revenues of $25.2 million and total net income of $3.1 million. Post closing, Yucheng will have six operating subsidiaries which include Sihitech, e-Channels, Beijing Sihitech Software, Shanghai Sihitech, Shanghai Sihitech Software and Guangzhou Sihitech. There also will be two representative offices in Fuzhou and Xian. The combined company will have a combined employee staff of approximately 550 employees.
It's a profitable entity with significant growth and huge profits margins. (read SEC)
Their business plan is to hit these profits (not revenues):
2007 $ 8,500,000
2008 $ 11,900,000
2009 $ 16,700,000
2010 $ 23,300,000
They have 9.5m O/S with a lot less in float. And already 3.2m in profits. Plus, they just purchased another profitable company:
http://biz.yahoo.com/bw/070122/20070122006146.html?.v=1
BEIJING--(BUSINESS WIRE)--Yucheng Technologies Ltd. (YCHTF.OB, YCHWF.OB) today announced that its wholly owned subsidiary, Beijing Yucheng Technologies, signed a stock purchase agreement to acquire 100% ownership of Sunrisk Information Technology Ltd., a Beijing based risk management solution and service provider to Chinese banks. The consideration for the acquisition of the stock of Sunrisk Information Technology Ltd. was all cash deal which was partially paid at the time of acquisition, with the balance due on January 31, 2007 and March 31, 2008 based on the 2006 and 2007 results of operations. For 2006, Sunrisk's unaudited revenue was approximately US$ 1,536,000 (RMB 12 million) and unaudited net profit was US$ 960,000 (RMB 7.5 million) under US GAAP.
So, here is what Yucheng does:
Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 600 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.
Finally, I believe they applied for Nasdaq....according to SEC documents...I like the warrants (strike price is $5, expiration - 11/2008
Friday, January 26, 2007
Update - Nasdaq Listing (HRBN)
As mentioned last week, here comes Nasdaq listing...
http://biz.yahoo.com/prnews/070126/cnf009.html?.v=17
Harbin Electric Announces Approval for Listing on NASDAQ Global MarketFriday January 26, 8:30 am ET
HARBIN, China, Jan. 26 /Xinhua-PRNewswire-FirstCall/ -- Harbin Electric, Inc. (OTC Bulletin Board: HRBN - News), announced today that its common stock has been approved for listing on the NASDAQ Stock Market. The Company expects to commence trading on the NASDAQ Global Market on Wednesday, January 31, 2007 under the ticker symbol "HRBN." Until that time, the Company's shares will continue trading on the OTC Bulletin Board. The NASDAQ Global Market, formerly the NASDAQ National Market, includes approximately 1,450 companies.
"We are proud to meet the strict requirements for listing on the NASDAQ Global Market, which reflects the significant progress we have achieved in growing our business and delivering strong financial results," commented Tianfu Yang, Chairman and CEO of Harbin Electric Inc. "We believe that a listing on NASDAQ will increase our visibility, strengthen our shareholder base and enhance shareholder value."
Mr. Yang continued, "2007 will be a year in which Harbin Electric penetrates new markets, develops new products, and continues to gain share within current customers while continuing our expansion into the international marketplace. Achieving a NASDAQ listing was a major goal for us during the first half of 2007 and we are excited to have accomplished this early in the year. I would like to express my appreciation to our Board of Directors, experienced management team and dedicated employees for this significant corporate achievement."
http://biz.yahoo.com/prnews/070126/cnf009.html?.v=17
Harbin Electric Announces Approval for Listing on NASDAQ Global MarketFriday January 26, 8:30 am ET
HARBIN, China, Jan. 26 /Xinhua-PRNewswire-FirstCall/ -- Harbin Electric, Inc. (OTC Bulletin Board: HRBN - News), announced today that its common stock has been approved for listing on the NASDAQ Stock Market. The Company expects to commence trading on the NASDAQ Global Market on Wednesday, January 31, 2007 under the ticker symbol "HRBN." Until that time, the Company's shares will continue trading on the OTC Bulletin Board. The NASDAQ Global Market, formerly the NASDAQ National Market, includes approximately 1,450 companies.
"We are proud to meet the strict requirements for listing on the NASDAQ Global Market, which reflects the significant progress we have achieved in growing our business and delivering strong financial results," commented Tianfu Yang, Chairman and CEO of Harbin Electric Inc. "We believe that a listing on NASDAQ will increase our visibility, strengthen our shareholder base and enhance shareholder value."
Mr. Yang continued, "2007 will be a year in which Harbin Electric penetrates new markets, develops new products, and continues to gain share within current customers while continuing our expansion into the international marketplace. Achieving a NASDAQ listing was a major goal for us during the first half of 2007 and we are excited to have accomplished this early in the year. I would like to express my appreciation to our Board of Directors, experienced management team and dedicated employees for this significant corporate achievement."
Thursday, January 18, 2007
HRBN - Harbin Electric
Potentially good long term investment in Harbin Electric (HRBN.OB) - http://finance.yahoo.com/q?s=hrbn.ob
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001266719&owner=include&count=40
The company is specializing in the linear motors. This is US company based in Beijing, China, which makes it undiscovered China play. They are forecasted to earn .82 in 2007, and almost twice as much (over 1.50) in 2008.
So, basically the forward P/E is below 6 right now...(stock is currently trades between 8.10 and 8.20). Bejing is planning to build the world's biggest subway, which is projected to surpass London as the city with the world's most extensive underground. There is potentially a very big market for railway projects for Harbin Electric's Linear Motors. Recently they announced that they entered into a joint venture research and development with Institute of Electrical Engineering of the Chinese Academy of Sciences to produce a train and system to be tested at the Beijing Airport railway line in China by the end of 2008.
Company is also trying to get on the Nasdaq with a possible listing before April 1, 2007, as well as engage a Qualified Auditing Firm. Here is the section from the recent financing deal they made with Citadel & ML:
Section 4.25 Listing of the Company's Common Stock.
The Company shall make such filings, registrations or qualifications and take all other necessary action and will use its best efforts to obtain such consents, approvals and authorizations, if any, and satisfy all conditions that the Nasdaq Capital Market or Nasdaq Global Market may impose on listing the Company's common stock and shall use its best efforts to obtain such listing by no later than April 1, 2007 and maintain such listing continuously thereafter.
And finally, Dutton and Associates began covering this stock with a Strong Buy Raiting. Once again, this is not a daytrade, but a potentially multi-bagger long term investment...
As of December 18, 2006 it had only 16.6 mil O/S, and insiders own 13.6 mil shares, leaving only 3 mil in the float.
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