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Great article here and notice some key statements in this piece. Also notice why DSHL is a HUGE buy here and now before it gets noticed by the masses.
Auto Sales Plunging: Will AutoZone Benefit?
By Ockham Research · Nov 4, 2008
The U.S. auto industry is currently enduring one of the worst business climates in its history, as the tapped-out consumer retrenches. General Motors (GM) reported that October was its worst sales month in the post-World War II era. GM’s sales were hit the hardest, dropping 45%. Chrysler and Ford (F) fared little better as their sales fell 35% and 30%, respectively. The credit crisis can be blamed for a portion of the auto industry’s distress, as financing for auto loans has dried up for all but the most qualified buyers. Compounding the problem, many consumers are in no position to take on additional debt for a new car in the midst of a recession. So, with an aging fleet of vehicles motoring across the country, we think it is reasonable to assume that auto parts retailers such as AutoZone (AZO) will see increased sales as a result.
This week, Ockham Research downgraded AutoZone to Undervalued from Greatly Undervalued. There has been quite a bit of news in this stock that prompted our ratings change. First, AutoZone reported earnings at the end of September that showed rising sales and earnings. However, same-store sales were a slight disappointment, gaining only .6%. The stock dipped over the next few weeks but some of that drop can be attributed to the overall bear market in October. Still, AZO’s results are starting to reflect our belief that auto parts retailers should increase sales as the nation’s auto fleet ages. Our analysis shows that during the last week, AutoZone cash earnings estimates have improved by 12% but the stock price advanced a whopping 24% during the same period. The price shot up last week at a pace that exceeds what we believe the fundamentals justify, which necessitates our downgrade. However, we remain positive on the stock overall.
AutoZone is the largest U.S. retailer of auto parts and should continue to benefit from a weak new auto market that likely has little chance of strengthening in the near term. We highlighted this trend in a Razor’s Edge piece on September 11 (Automakers Pain May Be Genuine Parts Gain). However, with AZO’s recent strong price appreciation, we have a hard time justifying establishing a position at the stock’s current level. For example, we look for stocks that are undervalued compared to historical valuation metrics such as price-to-sales and price-to-cash flow and, as you would imagine, there are currently many stocks that fit this criteria. Interestingly, AZO is not one of them, as the stock now sits within its historically normal range in each of those valuation metrics.
AutoZone has the wind at its back right now from a macroeconomic standpoint. In addition, the company likes its stock as it just authorized a $500 million share buyback just two days after releasing earnings in September. After the recent run-up in the shares, we would normally have AZO rated Fairly Valued, but our risk indexes received an adjustment factor because of the short-term oversold condition of the Services sector, which includes retailers like AZO. In fact, we have AZO rated as our least attractive stock in this segment at current valuations. So, unless there is a pull-back in AZO we would recommend looking toward other auto supply retailers that appear to be more undervalued at present, if you are looking to take advantage of the growing need for replacement auto parts.
http://wallstreetpit.com/auto-sales-plunging-will-autozone-benefit/
Auto Industry Poised for Turnaround While Utilities Could Reach Profits of Their Oil & Gas Peers, According to wRatings 2008 Study on Competitive Advantage
Friday November 7, 7:50 am ET
AutoNation, Constellation Energy, Harley-Davidson and Marathon Are Most Competitive in Their Industries
HERNDON, Va.--(BUSINESS WIRE)--The wRatings Corporation, an independent competitive research firm, announced today the results of its annual study on the Most Competitive Auto, Gas & Utilities companies.
The wRatings Competitive Strength Index™ for the Auto industry will grow 6.8% CAGR over the next five years, as manufacturers rapidly transform to meet changing consumer expectations. By comparison, Auto Retailers and Oil & Gas companies will only grow by 3.2% and 5.0% CAGR respectively. Yet Utility companies will outpace everyone with a 10.7% CAGR growth in competitive strength.
Scores from the Competitive Strength Index are a blend of how well companies meet consumer expectations while also generating economic profit. The quarterly survey is conducted with a representative sample of 25,000 US households by wRatings across 12 industries. The firm has been conducting the surveys since 1999.
Gary A. Williams, CEO and founder of wRatings, says, “Whichever auto companies can make it through the current downturn will take part in one of the best bull markets for autos ever seen. Whether through pent-up demand or the transformation to alternative energy, consumers will be seeking out new cars that meet rising expectations. Companies with visionary CEOs and revolutionary products, similar to what Steve Jobs did with the iPod, will be the big winners.”
All 65 companies in the study received a W Score™, where 100 equals the most competitive nationally.
2008 RANK 2007 RANK AUTO COMPANIES W SCORE™
1 1 Harley-Davidson (HOG) 87.2
2 4 Honda (HMC) 64.9
3 3 Acura (HMC) 64.4
4 11 Lexus (TM) 61.6
5 13 Subaru (FUJHY) 58.6
AUTO RETAILERS
1 2 AutoNation (AN) 81.7
2 1 AutoZone (AZO) 72.6
3 3 Advance Auto Parts (AAP) 71.8
GASOLINE STATIONS
1 3 Marathon (MRO) 72.6
2 1 Mobil (XOM) 72.4
3 4 Valero (VLO) 69.3
UTILITY COMPANIES
1 1 BGE/Constellation (CEG) 68.2
2 2 Southern Co. (SO) 56.5
3 7 Allegheny (AYE) 47.3
Full rankings are available free for a limited time at http://www.wratings.com/projections.php?s=111. The annual report and detailed company profiles are available to premium subscribers. Check http://www.wRatings.com for subscription prices.
http://biz.yahoo.com/bw/081107/20081107005100.html?.v=1
Have a look at Autozone (AZO), this is a VERY strong industry. DIAS will get noticed sooner or later for sure.
http://finance.yahoo.com/q?s=azo
Yes, the key thing to realize here is that the after-market auto industry will do better than most industries during current times as people aren't buying new cars but are looking to keep their old cars going, hence making this market very attractive and profitable. Also, once new car sales pick up it will also be ready to prosper there; so definately a win-win situation here with DSHL.
Here's an interesting article talking about why the auto parts will do well during current times.
The Bright Side Of Auto Parts, Not Cars
http://community.investopedia.com/news/IA/2008/The-Bright-Side-Of-Auto-Parts-Not-Cars-AZO-AAP-ORLY1019.aspx?partner=YahooSA
NEWS - Detroit International Auto Salon Exhibitors Cross 100 Threshold -- More on the Way
Wednesday November 5, 8:00 am ET
ALLEN PARK, MI--(MARKET WIRE)--Nov 5, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
"We have broken through a significant hurdle in our first year of operation," stated Michael Wesney, President of the Detroit International Auto Salon (DIAS), as he announced today that the number of exhibitors showcasing their products at the Allen Park, Michigan facility topped 118. "The Detroit International Auto Salon is strategically unique to the US, following successful auto malls and auto salons in Japan and China where huge tracts of commercial real estate are devoted to year-round exhibition of new and used automobiles, parts, accessories complemented with hotel, restaurant, convention, and other services that attract and keep the car enthusiasts coming back for more," Mr. Wesney explained. For an example, Mr. Wesney pointed to the Tianjin Airport International Auto Park located approximately an hour drive southeast from the Chinese capital of Beijing.
Source: DIAS Holding, Inc.
Example of Tianjin (China) Auto Mall Building
"Our vision for the Detroit International Auto Salon is to create a master-planned center of automotive product and service excellence, that provides the consumer/buyer a one-stop shopping array for everything automotive related," stated Eric Huang, Chairman and CEO of DIAS Holding, Inc., the parent company of the Detroit International Auto Salon. Citing other international auto mall examples, Eric highlighted, "The Tianjin auto park reported in January this year that it achieved 5 billion Chinese Yuan in sales. That is approximately equivalent to US$735 million. If we can achieve a portion of that success here in the Motor City, I am confident that our supporters, from the local government to our shareholders, will feel we have created something special."
Sources at the Detroit International Auto Salon cited the Tressa Yokohama Auto Mall, and the Nissan Carest Zama center in Japan, and the recently announced Kowloon Bay Integrated Auto Mall, having 250,000 square feet under one roof, as examples of the DIAS business model, where continuous showcasing of automotive products are supplemented by destination services, such as lodging, restaurants, and entertainment. The DIAS facility in Allen Park is capable of expanding to over 300,000 square feet, and discussion is underway for a new facility near the Detroit Metro Airport, one of the nation's busiest hubs.
"If you have followed our recent and previous news releases, we are on track with the creation of exhibitor feeder channels in some of the major automotive manufacturing municipalities and centers in China," summarized Mr. Wesney.
http://biz.yahoo.com/iw/081105/0448376.html
Obama victory helps unions, auto companies
By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – 23 mins ago
WASHINGTON – Barack Obama's victory in the presidential race will give labor unions and the embattled U.S. auto industry a strong ally in the White House, and likely will put pressure on oil and gas producers and pharmaceutical companies.
His election Tuesday also makes congressional approval of a fresh economic stimulus package — perhaps as large as $150 billion — more likely, economists said.
"There is a general consensus that some kind of stimulus plan is called for," said Ken Mayland, president of ClearView Economics.
The new president's biggest challenge will be to turn around an economy that many analysts already believe is in recession. A stubborn housing slump led to the worst U.S. financial crisis in 70 years, which has caused banks to reduce lending and consumers and businesses to sharply cut back their spending.
The economic slowdown, plus a ballooning budget deficit that by some estimates could near $1 trillion in the budget year that began Oct. 1, will restrict Obama's ability to make good on some of his more ambitious promises, such as expanding health care coverage and subsidizing alternative energy.
The Illinois senator has pledged to offset some expenditures by raising corporate tax rates and income taxes on families making more than $250,000.
Obama is expected to move quickly to put his stamp on the huge $700 billion financial bailout Congress approved last month, analysts said.
Anil Kashyap, an economics professor at the University of Chicago's Graduate School of Business, said Tuesday that naming the next Treasury Secretary and his top deputies — who will oversee the bailout plan — should be the new president's top economic priority.
In return for the rescue plan, banks, insurance companies, hedge funds and the rest of the financial sector will almost certainly face a regulatory overhaul effort by the Democratic Congress next year.
Obama's reputation as a conciliator, meanwhile, will be sorely tested by the labor-backed Employee Free Choice Act, which would allow workers to form unions by getting a majority of employees to sign a card in support of a union, rather than through a secret ballot election.
Business groups such as the U.S. Chamber of Commerce fiercely oppose the measure because they say the elimination of the secret ballot would open up workers to intimidation and harassment.
The measure, supported by Obama and most Democrats in Congress, was approved in the House last year but stalled in the Senate.
Meanwhile, Obama has promised to help Ford Motor Co., General Motors Corp. and Chrysler LLC by doubling a recently approved loan program to $50 billion to help the auto industry develop more fuel-efficient cars.
Oil and gas companies such as Exxon Mobil Corp. and Chevron Corp., however, could face a windfall profits tax, which Obama has promised to impose to pay for a $1,000 "emergency energy rebate" for families.
Also on energy, Obama proposes spending $150 billion over 10 years to speed the development of plug-in hybrid cars and "commercial-scale" renewables, such as wind and solar.
Under an Obama administration, pharmaceutical companies will struggle to defend the lucrative Medicare drug benefit, which pays for medications taken by 47 million elderly people. Obama has pledged to allow the government to negotiate drug prices under the program directly with the pharmaceutical companies, saying it could save $30 billion.
http://news.yahoo.com/s/ap/20081105/ap_on_bi_ge/obama_business
Just saw that the latest reverse merger report has a profile on DIAS Holdiings, Inc. Does anyone have a subscription to this so we can see what it has to say? Link is below and it talks about it down on the bottom.
http://reversemerger.dealflowmedia.com/
related: WATG,Wonder Auto Technology Announced Improved Revenue Guidance for 2008 & 2009
Tuesday November 4, 8:30 am ET
JINZHOU CITY, China, Nov. 4 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG - News; "Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical, suspension parts and engine accessories in China, announced improved guidance for 2008 & 2009.
The updated guidance for year 2008 reflects:
-- The projected sales revenue for 2008 will be over $150 million.
The guidance for year 2009 reflects:
-- The targeted sales revenue for year 2009 will be between $220 million
to $230 million.
"We are increasingly confident in our revenue outlook for the whole year of 2008 and 2009 as we are experiencing continuing strong demand for sales of alternator and starter products for mid- to small-displacement engines. With emphasis on research and development we are able to maintain a long-term collaborative relationship with our existing customers and win more new customers. We are also increasing sales to the international auto markets. Through our recent acquisition, we are expecting higher sales revenue for the coming years," commented Mr. Qingjie Zhao, chief executive officer of Wonder Auto.
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrical parts, suspension products and engine accessories. Wonder Auto was ranked second in sales revenue in the China market for automotive alternator and starter in 2007. With respective 5 different series and over 150 models of alternators, 70 models of starters, various suspension and engine related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both in domestic China and overseas. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co. Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., and Tianjin FAW Xiali Automotive Co., Ltd, Shanghai VW and Weifang Diesel Engine. For more information, please log on to http://www.watg.cn .
http://biz.yahoo.com/prnews/081104/cntu034.html?.v=19
Looks like blue light special today with some cheapies being offered at .01
Detroit International Auto Salon Will Make Room for India's Emerging Automotive Suppliers
Monday November 3, 8:00 am ET
ALLEN PARK, MI--(MARKET WIRE)--Nov 3, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
The Detroit International Auto Salon (DIAS) released information today announcing intentions by one of India's leading automotive supplier regions to showcase their products at DIAS' Wayne County facility.
"DIAS President Michael Wesney and I had a series of meetings with the leading Pune auto cluster suppliers to exhibit their products during our recent trip to India. As a result, they are planning to send a delegation here soon," commented Eric Huang, Chairman and CEO of DIAS Holding, Inc., the parent company of DIAS.
Pune is fast becoming a major industrial hub in India, and a center of automobile manufacturing, hosting plants owned by Tata Motors, Bajaj Automotive, and Daimler. Large metal parts manufacturers, like Bharat Forging Limited, the world's second largest forging company, are there. Located 160 kilometers east of the Mumbai metropolitan area, Cummins, Thyssen-Krupp, IBM, Siemens, and EDS all have major presence in Pune.
Local newspaper, Daily News & Analysis, covered the DIAS delegation visit to solicit Pune industry to showcase their products in Allen Park, home to DIAS' 300,000+ square-foot facility. Managing director, Shailendra Goswami, of Pushkaraj Engineering Enterprises PLC, stated, "So far, we have received an overwhelming response from Pune industry... to setting up a wholly dedicated Pune pavilion for component manufacturers." In the Pune region, there exists over 2,200 companies in the automotive and parts, electronics, IT, biotech, environmental and chemical technologies.
"It is good for Pune small-medium enterprises (SMEs) and we will surely work towards having a better participation from Pune to DIAS as it will give companies an international exposure," stated Director-General Anant Sardeshmukh of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), in the same article.
http://biz.yahoo.com/iw/081103/0448357.html
Volkswagen Overtakes Exxon as Most Valuable Company (Update2)
By Alexis Xydias
Oct. 28 (Bloomberg) -- Volkswagen AG became the world's biggest company by market value after Porsche SE announced plans to raise its stake in the German carmaker to 75 percent, forcing short-sellers to cover their bets on a decline in the stock.
BaFin, Germany's financial-markets regulator, is monitoring trading after Volkswagen rose more than fourfold in two days, said spokeswoman Anja Engelland. At its high today, Wolfsburg, Germany-based Volkswagen's common shares were valued at 296 billion euros ($370 billion), more than Exxon Mobil Corp.'s $343 billion at yesterday's closing price in New York Stock Exchange composite trading, according to data compiled by Bloomberg.
The gains follow Porsche's Oct. 26 announcement that the maker of the 911 sports car plans to increase its Volkswagen holding from 42.6 percent, spurring short-sellers to buy from a shrinking pool of stock to close their positions in a so-called squeeze. Volkswagen, the world's 16th-largest company by sales, is the most shorted stock in Germany's benchmark DAX Index.
``The regulator needs to investigate,'' said Piers Hillier, head of European equities at WestLB Mellon Asset Management U.K. Ltd. in London. ``The bigger question has to be why they have not done so already. If ever there was an example of market manipulation, this is it. Porsche's stake-building process is at best obscure.''
Michael Brendel, a Volkswagen spokesman, said the company doesn't comment on its stock price. Frank Gaube and Frank Scholtys, spokesmen for Stuttgart, Germany-based Porsche, didn't immediately respond to two messages left at their office or to a message left on Gaube's mobile-phone voicemail seeking comment.
Stock On Loan
About 12.9 percent of Volkswagen's common stock was on loan as of Oct. 23, mostly for short sales, the highest proportion of any company on the DAX, according to London-based Data Explorers.
``One of the biggest risks with the herd mentality approach to shorting is that a lot of money can be made on the outset,'' said Ed Oliver, a senior business consultant at Spitalfields Advisors, a London-based firm specializing in securities lending. ``But you can end up losing the whole of it when you try to close the position. There's no limit.''
Stuttgart, Germany-based Porsche added to an earlier 35 percent stake and said two days ago that it holds options for another 31.5 percent. Volkswagen rose as much as 485.01 euros today, or 93 percent, to 1,005.01 euros.
`Short Squeeze'
``Porsche heads for a domination agreement and triggers a short-squeeze,'' Horst Schneider, an HSBC Holdings Plc analyst in Dusseldorf, Germany, wrote in a report yesterday, in which he upgraded Volkswagen's common shares to ``neutral'' from ``underweight.'' The stock ``will be more driven by covering of short positions rather than by fundamental valuations.''
Carmakers worldwide are struggling with plunging sales as credit markets seize up and economies contract, deterring consumers from making large purchases. U.S. industry-wide auto sales fell 27 percent in September, the steepest monthly slide since 1991, while nine-month deliveries in Europe declined 4.4 percent as September sales dropped 8.2 percent.
Carmakers' Debt Downgraded
PSA Peugeot Citroen, Europe's second-largest carmaker, and smaller French competitor Renault SA both had their credit ratings downgraded by Moody's Investors Service because of the risk that car markets won't recover next year. Standard & Poor's said it may cut the credit rating of Fiat SpA, Italy's biggest carmaker, to less than investment grade.
Until yesterday, when the stock more than doubled, Volkswagen's largest gain in almost two decades was a 27 percent jump on Sept. 18. People familiar with securities lending said at the time that the collapse of Lehman Brothers Holdings Inc. caused the increase by triggering recalls of borrowings. The stock fell 23 percent on Oct. 20, the steepest drop also in almost two decades, as short-sellers predicted the price would decline once Porsche gains control.
There may be little ordinary stock freely trading in Volkswagen because most of the shares are owned by Porsche, the German state of Lower Saxony and the banks that underwrote Porsche's options, Adam Jonas, a London-based analyst at Morgan Stanley, wrote in a research report yesterday. Lower Saxony is Volkswagen's second-largest owner with a 20.1 percent stake.
Index-tracking funds also hold stakes in Volkswagen, now the DAX's most heavily weighted stock, and must retain the holdings as long as the carmaker remains a member.
DAX Membership Criteria
Deutsche Boerse AG, the operator of Germany's main stock markets, said Volkswagen will remain in the DAX unless the carmaker announces the freely traded stock no longer meets requirements.
``We're applying our regulatory framework and, as long as Volkswagen's free float is above 5 percent, the index won't be changed,'' said Torsten Baar, a spokesman for Frankfurt-based Deutsche Boerse.
BaFin is analyzing trading in Volkswagen stock, though it hasn't opened a formal inquiry into whether there's any manipulation and ``pure cash-settled options do not require disclosure'' under the country's laws, said Engelland, a spokeswoman for the Bonn-based agency. Results from any analysis are unlikely this week, she added.
Porsche's Intent
Until Oct. 26, Porsche had said it was aiming only for a stake exceeding 50 percent, and Chief Executive Officer Wendelin Wiedeking said at the Paris Motor Show early this month that a stake of as much as 75 percent would be ``not realistic'' because of market turmoil.
Short sales have largely been undertaken by investors betting on a decline in Volkswagen's common stock, which hold voting rights, or its underperformance relative to the preferred shares, which carry no votes, according to analysts.
The common shares, which outnumber the preferred equity almost three to one, are the only stocks to gain this year on the DAX and the nine-member Bloomberg Europe Autos Index. In contrast, Volkswagen's preferred stock has dropped 62 percent, including a 14 percent decline yesterday, to 37.89 euros.
``Volkswagen has been one of the greatest shorts of hedge funds, and it's been an absolute, absolute disaster,'' Emmanuel Roman, co-chief executive officer of GLG Partners Inc., said at a conference in London on Oct. 23. ``It's been very painful.'' GLG didn't participate in short-selling trading of the carmaker's common shares, he said.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aWeWGIPhKfnk&refer=home
Yes I couldn't agree more. The Largest Company in the World...Volkswagen
Yes Volkswagen! As just another example of how crazy things have become in this market, in terms of market capitalization, Volkswagen temporarily surpassed ExxonMobil (XOM) and became the largest company in the world this morning. The reason for today's move is due to an announcement from Porsche that they intend to increase their stake in the company to 75%. Since Volkswagen had the highest short interest of any stock in the German DAX index (12.9% of float), the result was the mother of all short squeezes. After closing at 210 Euros on Friday, Volkswagen rose above 1,000 Euros in intraday trading and is currently trading at 643 Euros.
Today's move in Volkswagen highlights the complete lack of liquidity in the marketplace these days. When the largest companies in the world are making triple-digit percentage moves on a regular basis, it's hard to say that the market is operating in a rational manner. Although holders of Volkswagen are probably feeling pretty good right now!
http://bespokeinvest.typepad.com/bespoke/2008/10/the-largest-company-in-the-worldvolkswagen.html
Monday October 27, 1:42 pm ET Volkswagen shares rocket after Porsche lifts stake in automaker.
FRANKFURT, Germany (AP) -- Volkswagen shares soared more than 200 percent higher Monday, bolstered by Porsche's announcement of plans to lift its stake in the automaker to 75 percent by 2009. Shares of Europe's biggest car maker rose as high as 635 euros ($791.21) before settling back to 590 euros ($735.14), up nearly 180 percent on the day, in late afternoon Frankfurt trading.
http://www.topix.net/autos/volkswagen/2008/10/vw-shares-nearly-double-as-porsche-control-move
http://www.bostonherald.com/business/automotive/view.bg?articleid=1128119&srvc=rss
related news from sector..CAAS buyback, China Automotive Systems Announces Management's Plans to Purchase Company Shares
Thursday October 23, 9:02 am ET
WUHAN, Hubei, China, Oct. 23 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS - News), ("China Automotive" or "Company") a leading power steering components and systems supplier in China, today announced that its founder and Chairman, Mr. Hanlin Chen, Chief Executive Officer, Mr. Qizhou Wu, Chief Financial Officer, Mr. Jie Li and other officers are planning to invest 500,000 dollars to purchase common shares of the Company in the open market.
Chairman Hanlin Chen commented, "This share purchase reflects management's belief that the recent stock price has been impacted by market factors that are far below our long-term value. In the most recent quarter we reported a 28.1% revenue gain compared with the year ago period. For the six months ended June 30, 2008, our fully diluted earnings per share rose to $0.36. The Company also reported cash and equivalents of $28.4 million at June 30, 2008."
"In the past 15 years, we have built a successful business with the leading market share in China. As we continue our quest in the world's second largest auto nation and 15 billion dollar global market, we are confident with our investment and increased ownership of China Automotive Systems."
About CAAS
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com .
Good progress is being made to increase shareholder value. I like to hear that they are expanding...more expansion, more revenues and hopefully more profits! I didnt know until that last PR that TREMEC was one of their clients. thats huge. they make great manual transmissions.
Detroit International Auto Salon Opens China Operations Center in Hangzhou
Monday October 20, 4:30 pm ET
ALLEN PARK, MI--(MARKET WIRE)--Oct 20, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
Detroit International Auto Salon announced today the opening of its China operations center in Hangzhou under the direction of Mr. David Mei, Managing Director. "This is another important step towards our future success," said Mr. Eric Huang, Chairman and CEO of DIAS Holding, Inc., the parent company of the Detroit International Auto Salon.
"There are an increasing number of Chinese auto companies and their suppliers who are eager to bring their products to the international market," stated David Mei. "The Detroit International Auto Salon provides these suppliers with the premier North American outlet to showcase their products, and take the first step in entering the US market. I am eager to build upon the sales partnerships and network that DIAS has already established, and take our cooperative partnership agreements to the next level," said David.
A spokesperson for DIAS stated they anticipate that the China Operation Center will immediately have a staff of 15, led by Mr. David Mei, with three branches located in Wuhan, Ningbo and Chengdu. The company has been able to create synergy with their sister subsidiary, Asia Forging Supply, which sources millions of dollars of automotive, furniture, and transportation equipment parts and components from China to major customers, such as Navistar, TRW, and TREMEC. Both DIAS and AFS (Asia Forging Supply) are affiliates of DIAS Holding.
http://biz.yahoo.com/iw/081020/0444291.html
Some Nice News After-Hours...Definately a great partnering deal as Gasgoo seems to have some nice tentacles in the global marketplace.
Gasgoo and Detroit International Auto Salon to Partner in Cross-Pacific Marketing
Tuesday October 14, 4:54 pm ET
ALLEN PARK, MI--(MARKET WIRE)--Oct 14, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
The Detroit International Auto Salon, the premier physical, year-round B2B automotive showcase, and Gasgoo.com, the premier Chinese B2B automotive marketplace, have agreed to partner in promotional events and activities that enable each to gain a broader exposure to their supplier and customer networks.
"By introducing Gasgoo to our network, our customers will immediately have visibility into the thousands of automotive product members in China, and vice versa," says Michael Wesney, President of the Detroit International Auto Salon, a subsidiary of DIAS Holding. "Gasgoo members have a place at DIAS to physically showcase their products year-round," he added.
Gasgoo.com (http://www.gasgoo.com) is China's largest automotive B2B marketplace with over 80,000 global buyers and 12,000 verified member suppliers. Gasgoo has been successfully partnering with some of the world's most recognized Tier 1 suppliers, automotive associations and media channels at home and abroad. The comprehensive services and marketing promotional campaigns of Gasgoo are assisting China auto parts suppliers to get integrated into the global supply chain in a more efficient way. Gasgoo is a multi-functional comprehensive service provider, which is dedicated to advancing the competitiveness improvement of China's auto parts suppliers in the global automotive market.
"We are very excited to promote DIAS at our website, and encourage our members to create their product presence in the USA at the Detroit International Auto Salon. The Auto Salon's pre-eminent location in Detroit complements Gasgoo's presence on the Internet very well," said Mr. Kevin Chen, President and CEO of Gasgoo.com.
About the DIAS Holding Incorporated:
DIAS Holding, Inc. is a Delaware Corporation servicing the multi-billion dollar industry of providing automotive, trucking, railway and petroleum industries with raw, finished and assembled components. The company's major holdings include Asia Forging Supply Company, a prime contractor for a network of factories throughout Asia, and the Detroit International Auto Salon, a wholly owned subsidiary, and the largest independent, year-round exhibition center for automotive products. For more information about DIAS Holding, Inc., please visit www.diasholding.com.
http://biz.yahoo.com/iw/081014/0442900.html
Your data feed must be broken. My level 2 currently shows .081 x .18
Have a look at WATG today and tell me DSHL soon won't fly...Up 21% today alone. DSHL is perfectly positioned, like I said earlier, to benefit immensely from operating on a global level.
http://finance.yahoo.com/q?s=watg
Sector related News and trading at $4.19 right now. DSHL going to be Huge for sure and I believe it won't be long before its trading in the $2-$6 range.
WATG,Wonder Auto Technology Announces Preliminary Financial
Results for the Third Quarter
Monday October 13, 8:30 am ET
JINZHOU CITY, Liaoning, China, Oct. 13 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG - News; "Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical and suspension parts in China, today announced its selected preliminary financial results for the third quarter ended September 30, 2008.
Third Quarter Selected Preliminary Financial Results:
-- Estimated sales revenue of approximately $39 million;
-- Estimated net income of approximately $6.3 million;
-- Estimated fully diluted EPS of approximately $0.23.
Mr. Qingjie Zhao, Wonder Auto's Chairman and CEO, said, "Thanks to the implementation of our growth strategies which have assured us to keep our rapid revenue and net income growth. Operating in a highly competitive environment, Wonder Auto's outstanding performance/price ratio attributed by our strong R&D capabilities, low-cost manufacturing and stable supplier network has enabled us to remain sticking with existing customers, winning new customers and capturing market share from competitors. Our strategy of diversifying product portfolio through acquisition has further bolstered our competitive position in the industry."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrical parts and suspension products. Wonder Auto was ranked second in sales revenue in the China market for automotive alternator and starter in 2006. With respective 5 different series and over 150 models of alternators, 70 models of starters and various suspension related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both in domestic China and overseas. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., and Tianjin FAW Xiali Automotive Co., Ltd. For more information, please log on http://www.watg.cn .
http://biz.yahoo.com/prnews/081013/cnm014.html?.v=44
I disagree with you and believe that DSHL is smartly positioned in the auto parts industry because it operates in the global market. The overview of the auto parts industry indicates that a global strategy is one of the keys to success. The challenging environment for U.S. automakers sets up a perfect opportunity for DIAS Holding, Inc. because of the need for companies like Ford and GM to reduce costs. Also, the timing couldn't have been better for the Company's establishment of the Detroit Auto Salon, providing auto part sourcing to low cost manufacturers in Asia, as well as retail service to the general public.
Overall, I believe it won't be long before people realize the uniqueness of DSHL and their perfect global strategy will enable them to realize significant revenue growth going forward.
Yes looks like were starting to wake up here...Don't forget other companies in same auto sector in China are trading in the $3-$6 range!!!
Very interesting, MM's are definately manipulating this due to it not being well known yet to many people. Look at all other companies in same sector as DSHL, they are all trading from $2-$5 for the most part. CAAS, WATG, SORL just to name a few.
Sector related news..WATG, Wonder Auto Technology to Acquire Control Stake in JWAA, the Largest Engine Valve & Valve Tappet Manufacturer in China
Monday October 6, 8:30 am ET
http://biz.yahoo.com/prnews/081006/cnm016.html?.v=61
JINZHOU CITY, Liaoning, China, Oct. 6 /Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology, Inc. (Nasdaq: WATG - News; "Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical and suspension parts in China, today announced that on October 1, it entered into an agreement to acquire the control stake of Jinan Worldwide Auto Parts Company ("JWAA").
Wonder Auto will pay a total cash consideration of RMB80 million for 65% in JWAA. The price will be adjusted downward or upward if JWAA's audited net income for the 12 months ended December 31, 2008 is lower than RMB19.48 million, or higher than RMB22.88 million. JWAA is currently the largest engine valve and tappets manufacturer in China. Its customers include some well-known automakers and engine manufacturers, including Shanghai VW, Tianjin Toyota, Ford Motor of the U.S., FAW Auto, Chery Auto, Geely Auto, Cummins Engine, Weifang Diesel Engine, and Shanghai Diesel Engine.
Mr. Qingjie Zhao, Wonder Auto's CEO and Chairman, commented, "The acquisition demonstrated our integration strategy of increasing market share by sharing the customer resources. Through the acquisition, we expect our current products to penetrate into JWAA's main market -- the Chinese diesel engine market, and JWAA's product to penetrate into Wonder Auto's main market -- the Chinese gasoline engine market. The acquisition will not only diversify our products offerings, but also further strengthen our market competitiveness with the resources sharing."
About Wonder Auto
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc., through its Chinese subsidiaries, designs, develops, manufactures and sells automotive electrical parts and suspension products. Wonder Auto was ranked second in sales revenue in the China market for automotive alternator and starter in 2006. With respective 5 different series and over 150 models of alternators, 70 models of starters and various suspension related parts, the Company supplies to a wide range of automakers, engine producers and auto parts suppliers both in domestic China and overseas. Wonder Auto's main customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., Harbin Dongan Automotive Engine Manufacturing Co., Ltd., and Tianjin FAW Xiali Automotive Co., Ltd. For more information, please log on http://www.watg.cn .
GM numbers beat extimates so that's a semi positive sign
Sales down -19% - beats -25% est.
yep definately something leaked there for sure....
That loss in production will now hurt earnings. I am out of this for now as it seems it may take some time to play out.
Look at these latest headlines from GM. DSHL will profit from this.
09/25/2008 10:35 *DJ GM To Begin Construction On Facility Immediately >GM
09/25/2008 10:34 *DJ GM To Invest $349M In Facility, $21M In Vendor Tooling >GM
09/25/2008 10:33 *DJ GM Announces $370M Investment For New Small Engine Manufacturing In N Amer
09/25/2008 10:30 *DJ GM To Double Global Output Of 4-Cyl Engines By 2011 >GM
This new facility they are talking about is the one mentioned a few days ago.
DETROIT -(Dow Jones)- General Motors Corp. (GM) on Thursday will lay out plans to build a new engine plant costing around $380 million in Flint, Mich., a move that comes as the struggling auto maker finalizes plans to shutter or consolidate more North American factories amid falling sales.
http://money.cnn.com//news/newsfeeds/articles/djf500/200809221645DOWJONESDJONLINE000609_FORTUNE5.htm
Nice volume today on this one!!!
GM opening new plant in Detroit, couldn't be any better of a location!!!!
GM Set To Lay Out Plans For New Michigan Engine Plant
September 22, 2008: 04:45 PM EST
DETROIT -(Dow Jones)- General Motors Corp. (GM) on Thursday will lay out plans to build a new engine plant costing around $380 million in Flint, Mich., a move that comes as the struggling auto maker finalizes plans to shutter or consolidate more North American factories amid falling sales.
GM picked Flint to build 1.4-liter engines -- the smallest it has ever made in the U.S. -- to power the next generation of compact cars coming in 2010.
At the same time, GM is in the final stages of laying out plans to cut production at older factories that provide engines, transmissions and sheet metal for larger pickup trucks and sport-utility vehicles.
The dual paths underscore the enormous task GM and other auto makers face in adjusting to Americans' rapid shift away from trucks to smaller, more fuel- efficient vehicles.
The challenge is especially tough on Detroit's cash-strapped auto makers, heavily reliant on high-margin trucks. The companies are saddled with extra capacity to build big trucks while they scramble to meet demand for the smallest vehicles.
"The change is as much from trucks to cars as it away from V-8 engines and big V-6s to four-cylinder and more fuel-efficient V-6s," said Ron Harbour, a partner at the automotive consulting firm Oliver Wyman. "There's always a lot of attention given to assembly plants, but the powertrain plants are almost as big an issue or bigger."
GM in June said it would build the new small-engine plant in Flint as part of sweeping plans to become a leaner auto maker less reliant on trucks. Those plans hinged on GM's ability to secure tax rebates from state and local governments.
Those plans called for closing four North American truck plants and, eventually, more consolidation of powertrain and stamping plants. The company is expected to announce specifics of those plans within the next few weeks.
On Thursday, GM Chief Executive Officer Rick Wagoner is slated to attend a ceremony in Flint to announce the new factory, according to the company and city officials. The plant is still contingent on tax breaks from the state, which are to be voted on this week.
The Flint factory would provide engines for the Chevrolet Cruze, which will replace GM's Chevy Cobalt compact car in 2010. The engine would also go into the Chevrolet Volt plug-in electric car, which GM hopes to build by 2010. The Volt would use the engine to recharge a battery, which would have a 40-mile range, on longer trips.
Harbour said virtually all auto makers, even Japanese companies better known for fuel-efficient offerings, are faced with the expensive task of retooling lines and factories to make room for smaller engines.
U.S. passenger-car sales were down 2% through August from a year earlier, while light truck sales fell 19%.
Toyota Motor Co. (TM) halted production of its full-size Tundra pickup truck for three months and has been unable to meet demand for its hot-selling Prius hybrid.
Honda Motor Co. (HMC), meantime, will soon begin production at a four-cylinder engine plant in Ontario.
And Ford Motor Co. (F) is working to convert several of its truck factories into small-car plants.
-By Sharon Terlep, Dow Jones Newswires; (248) 204-5532; sharon.terlep@dowjones.com.
http://money.cnn.com//news/newsfeeds/articles/djf500/200809221645DOWJONESDJONLINE000609_FORTUNE5.htm
Detroit International Auto Salon and Wuhan International Auto Show Pen Cross-Promotional Agreement - Opens Door for Automotive Suppliers in Hubei Province and Wayne County (Detroit), Michigan
Tuesday September 23, 8:00 am ET
ALLEN PARK, MI--(MARKET WIRE)--Sep 23, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
The Detroit International Auto Salon (DIAS), a subsidiary of DIAS Holding, Inc. announced today that Hubei Provincial Mechanical and Automotive Promotion Center (HPMAPC), the promoter of the Wuhan International Auto Show (WIAS), has signed an exclusive strategic cooperation agreement with DIAS. Mr. Zhang Shu-xun, the director of HPMAPC, said, "We are pleased and excited to partner with DIAS, since this is a win-win situation and will be beneficial to all the related parties, especially the Hubei provincial automotive industry. We look forward to seeing our success in the near future."
The strategic agreement facilitates the exhibitors and visitors of both DIAS and WIAS to access information, promote, and connect to each other's clientele, as well as establish a presence with participation in their counterpart's shows, activities, and special events. Located in Wayne County, Michigan, the DIAS year-round exhibition facility is in the center of the Detroit automotive capital. WIAS is located in the Yangtze River port city of Wuhan and the growing industrial province of Hubei. According to sources in China, Hubei is one of the dozen top automotive manufacturing bases in China, home to Dongfeng Motors and an important center for the production of auto parts. The automotive industry in Hubei contributes approximately 12% of the province's total industrial output value. "This agreement culminates the effort by both DIAS and WIAS management since January of this year," said Mr. Eric Huang, Chairman and CEO of DIAS Holding, Inc. "Through the DIAS-WIAS partnership, US automotive suppliers have a unique opportunity to cost-effectively show their wares year-round in one of the major automotive centers in China."
"Through our partnership with DIAS, we can build up a good bridge to connect the USA and China's automotive industries. And through this bridge, we can foresee more business and trade that will happen between the USA and China," summarized Mr. Liu Qian-gui, vice director of HPMAPC.
http://biz.yahoo.com/iw/080923/0436333.html
Oil with record jump today. Let’s hope it stays/keeps going up although oil even at $80 is still great for Pyramid. The company has done an incredible job having the cost per BOE at $15. That means even $30 oil makes the company money which many, many companies out there cannot say the same.
I continue to still look for shares to trade around $2 shortly.
I highlighted some key points from this research report summary that shows just how much growth is ahead for DSHL in the coming months and years. Not to mention the already strong numbers that they are currently realizing!!
"China industry research and market forecast: automobile parts and accessories manufacturing industry, 2008-2009" is an invaluable asset for anyone who wants to invest in the automobile parts and accessories manufacturing industry, to import into China, to partner with one of the key Chinese corporations, or to compete in the segment.
China is both the fastest growing motor vehicle market and the fastest growing vehicle producer. China is also the world's second-largest car market - it produced 8.88 million automobiles in 2007, of which 8.79 million were sold. For these reasons, and others, smart investors are reading "China industry research and market forecast: automobile parts and accessories manufacturing industry, 2008-2009".
As the global economy slips suffering from the unfolding global credit crisis and soaring energy prices, auto sales in China continue to boom. And, China's car market still has huge room to expand. At present, China's private car density is very low. The number of cars per 1,000 people in China is only 6 whereas the figure in developed countries is 500. Auto sales in China are expected to exceed 10 million units this year, which would represent full-year sales growth of 14 percent. In fact, auto sales have maintained double-digit growth since the beginning of this year.
This booming auto industry brings with it great opportunities for the auto parts and accessories industries. A great number of auto parts makers have increased their sales revenues severalfold. In fact, some enterprises' sales revenues are now measured by the billions in RMB. All indications are that this growth period will continue for at least the next five to ten years.
New vehicles in China will rise at an annual rate of 10 million units in the next few years, which means the vehicle population in the country is likely to reach 100 million units after five years. When that happens the auto-parts aftermarket will jump to 300 billion yuan, which is very lucrative to manufacturers.
The three driving forces behind the rapid growth of China's auto-parts industry are the domestic original equipment (OE) market, aftermarket, and export market. The three markets reached a value of more than 100 billion dollar in 2007, more than triple the number of 2002.
The auto parts industry will remain one of the most promising sectors and maintain its high growth rate over the next five to ten years.
Currently, there are five trends in China's auto parts industry: Progress has been made in restructuring and M&A; Multinational auto-parts manufactures have increased investment in China year on year; Export volume increased rapidly; Cluster effect has emerged; Private enterprises developed quickly. To understand these phenomena, and in their impact on this enormous and growing market you must read "China industry research and market forecast: automobile parts and accessories manufacturing industry, 2008-2009"
http://www.marketsensus.com/china-industry-research-market-forecast-automobile-parts-accessories-manufacturing-industry-20082009-p-50815.html
China - Domestic Auto Sales Rolling High
Sep 09, 2008
A robust demand for passenger cars and fast dropping prices of vehicles is expected to raise the Chinese domestic automobile sales by 15% to 10 Million in 2008.
An official from the China Association of Automobile Manufacturers (CAAM) said that due to strong demand for passenger cars in China, the sales of domestic automobiles are expected to increase by 15% to reach nearly 10 Million in 2008, as reported by Xinhua.
The statistics showed that the production as well as sales of automobiles in the country was recorded at 4.3 Million during January-May 2008, an increase of 17% over the first five months in 2007. Moreover, China’s average monthly production and sales crossed 860,000 Units. In 2007, the automobile industry reached 8.88 Million in production and nearly 8.79 Million in sales. Also, the sales of passenger cars grew by 17.41% during January-May 2008 over the corresponding period last year.
The soaring demand for passenger cars is the major reason for robust growth in the Chinese domestic automobiles sales. Currently, a large number of Chinese customers are purchasing new cars as a drop in the prices of automobiles is encouraging them to buy new vehicles. Rising employment rate with increase in wages is also fuelling the demand for automobiles in the country. Also, the rapidly growing economy of China is providing the country favorable business conditions for the growth of auto industry.
Further, the Chinese auto industry is expected to grow at a fast pace as the government is planning to reconstruct it by giving standards on energy saving, environment protection and security. Also, the ability of large number of consumers to purchase vehicles will lead to further growth in vehicle sales.
According to a Research Analyst at RNCOS, “Strong business environment is leading to a rise in the sales of the Chinese domestic automobiles. The growing auto industry is attracting a large number of foreign players to China and resulting in the overall growth of the economy. Also, the government initiatives for improving the country’s auto industry will provide enough growth opportunities to the Chinese auto manufacturers.”
http://www.rncos.com/Blog/2008/09/China-Domestic-Auto-Sales-Rolling-High.html
China auto-related % gains today->
WATG +14.68%
CAAS +11.7%
SORL +6.7%
DSHL once discovered will rise quickly and significantly imo and trade at levels seen as these other china related auto companies.
Here's some more DD for you:
It's an interesting read from last year. What a great thing this is, we definately are onto something very big here imo
http://www.autoblog.com/2007/10/25/autoline-on-autoblog-with-john-mcelroy/
Did you know about this also? Just an exciting thing that is a craze over there in China I guess and starting to gain attention here now also.
Asis Forging is officially authorized to distribute Yokomo drift cars. We will also be exhibiting these exciting vehicles in major automotive shows and our own DIAS showroom to spread out this drifting phenomenon.
Down the bottom of this webpage is where it talks about the R/C Drifting cars and has a link to watch a video of them:
http://web.asiaforging.com/product.asp
Here is the link to the video....
Here's some more detailed info. i was able to dig up:
Under Links Pushkaraj Engineering Enterprises Pvt. Ltd. is Listed.
http://www.detroitautosalon.com/Suppliers/link.asp
If you click on the Sales Network on the right Pushkaraj Engineering Enterprises Pvt. Ltd. comes up as well.
http://www.detroitautosalon.com/Suppliers/Link.asp?SID=13
So I guess we are associated with them as well.
On their site you will notice Asia Forging is listed on the bottom right under Agency Sales:
http://www.pushkaraj.com/index.html
And look where they are out of, India; another emerging Country.
http://www.pushkaraj.com/contact.html
And here is their Global Network
We have an established Global network with associates in :
Japan
Singapore
China
Italy
UK
USA
Germany
Korea
Taiwan
Middle East
Malaysia
Thailand
Spain
Australia
http://www.pushkaraj.com/global.html
Yes they are mingling with some large, well-known and established companies. Definately a good sign of possible things to come.
DSHL News just out....
Co-Operation With Detroit International Auto Salon Highlighted at the Wuhan International Auto Show Ceremonies
Tuesday September 16, 12:53 pm ET
WUHAN, HUBEI PROVINCE, CHINA--(MARKET WIRE)--Sep 16, 2008 -- DIAS Holding, Inc. (OTC BB:DSHL.OB - News)
Amidst 2008 model cars from Mercedes, Maybach, GM and other American, European, Japanese, and domestic Chinese automotive OEMs, the opening ceremonies of the 2008 Wuhan International Auto Show highlighted the executive participation by the Detroit International Auto Salon (DIAS) representing opportunities within Wayne County, Michigan, USA. Chairman and CEO of DIAS Holding, Inc., Mr. Eric Huang, was introduced amongst other dignitaries that included the Honorable Mr. Duan Lun-yi, Vice Governor of Hubei Province; Mr. Weng Yun-Gen of the People's Municipal Government of Wuhan; Mr. Chen Chun-Gen, the Vice Mayor of Suizhou City; Mr. Huang Jian-dong, Vice Mayor of Yaan City; Ms. Lu Ren-qi, Vice President of the China Machinery Industry Federation; and Mr. Xiao Yu, Deputy Director General of China Council for the Promotion of International Trade.
The Hubei province is known as a center of manufacturing for specialty trucks, with over three thousand variants produced, such as cement, sanitation, and lift trucks. "I am impressed with the immensity of this province's manufacturing base, and the quality of products produced," said Eric Huang. "Currently, most of these truck manufacturers fulfill domestic needs, but have desires and plans to enter the international market... we know we can assist these manufacturers to achieve such plans." Later, Mr. Huang led a discussion with the dignitaries explaining how DIAS is positioned to support these emerging companies with facilities and professional staff to showcase, exhibit, and market their products in the U.S.
"I received very favorable encouragement from these representatives," summarized Eric. "We intend to follow through rapidly to assist broadening their branding."
http://biz.yahoo.com/iw/080916/0434292.html