
As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:
1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.
2] Great Results and Valuations - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome. Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing. As such, we’re going to continue reporting and remaining patient.
TODAY’S FEATURED COMPANY
China Modern Agricultural Information Inc.

On May 15th 2012 the company announced the financial results for the 2012 fiscal third quarter and first nine months ended March 31st, 2012.
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2012 Fiscal Third Quarter (USD) (unaudited)
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Three Months End March 31, 2012 2011 CHANGE
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Revenue $9.4 million $6.8 million 38%
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Gross Profit $6.0 million $3.4 million 79%
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Gross Profit Margin 64% 50% 40%
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Net Income $4.6 million $2.0 million 133%
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Basic and diluted EPS* $0.09 $0.05 80%
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* Based on 50 million and 41 million shares outstanding for 2012 and 2011
fiscal third quarter, respectively.
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2012 Fiscal First Nine Months (USD) (unaudited)
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Nine Months End March 31, 2012 2011 CHANGE
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Revenue $19.5 million $17.2 million 13%
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Gross Profit $13.0 million $8.5 million 52%
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Gross Profit Margin 67% 50% 34%
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Net Income $14.0 million $5.7 million 149%
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Basic and diluted EPS* $0.31 $0.14 121%
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* Based on 45 million and 40 million shares outstanding for 2012 and 2011
fiscal first nine months, respectively.
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YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES
We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.
1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.
Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.
2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.
Regards,
George






