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
As a leading television advertising company in China , the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers approximately 41 minutes of advertising time slots per day on CCTV Channels 1, 2, and 4. CCTV is the largest television network in China . The Company has produced over 400 advertisements and has won a number of prestigious awards in China and across the world, including the “Gold World Medal” at The New York Festivals® International Television & Film Awards.
On November 21st 2011, announced financial results for the three months ended September 30, 2011.
Third Quarter 2011 Highlights:
- Total net revenues were US$9.0 million , an increase of 5.1% from the third quarter of 2010 and an increase of 11.3% from the second quarter of 2011.
- Operating income was US$2.6 million , an increase of 35.1% from the third quarter of 2010 and an increase of 17.7% from the second quarter of 2011.
- Net income was US$2.2 million , an increase of 117.8% from the third quarter of 2010 and an increase of 24.8% from the second quarter of 2011.
- Net cash outflows from operating activities were US$24.8 million
YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES
We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.
1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.
Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.
2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.