As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:
1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.
2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.
TODAY’S FEATURED COMPANY
China North East Petroleum Holdings Ltd. (NYSEAmex:NEP)
China North East Petroleum Holdings Limited is an independent oil company that engages in the production of crude oil in Northern China. The Company is a pioneer in China’s private oil exploration and production industry, and the first Chinese non-state-owned oil company trading on the NYSE Amex.
On September 7th 2010, the Company announced financial results for the financial quarter ended June 30, 2010.
Check out the full details below:
HIGHLIGHTS
- Revenue for the second quarter of 2010 increased 144% to $27.7 million from $11.4 million in the prior year period.
- The Company incurred GAAP net income of $25.0 million, or $0.81 per diluted share, in the second quarter of 2010. GAAP net income included $15.1 million in non-cash gains related to a change in fair value of warrants; Up from incurred GAAP net income of $21.7 million, or $0.70 per diluted share, in the first quarter of 2010. GAAP net income included $7.9 million in non-cash gains related to a change in fair value of warrants.
- As of June 30, 2010, the Company had $46.5 million in cash, compared to $34.2 million as of March 31, 2010 and $28.7 million as of December 31, 2009. Total assets were $139.4 million and total liabilities were $36.4 million and stockholders’ equity was $103.0 million as of June 30, 2010.
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