is...On The Hunt $$$
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Why Google's Huge Spiral Downward Is Great News For MIMV Shareholders.
Google's gigantic swan dive and Microsoft's notable target flop will only serve to speed up any and all strategic takeover plans by potential MIMV suitors during this quarter.
There has just been an enormous increase of pressure on all of those companies to quickly restore confidence ASAP. I'm thinking you will see a very noticeable pickup in the pace of strategic acquisitions, at much higher premium's , than may have been been the case prior to this week's avalanche of negative market reaction. Things are a little, actually a lot more tense over in the executive offices at places like Google, Facebook, Microsoft et al these days, which should benefit MIMV shareholders much more and much sooner than earlier anticipated. Yippee ki-ay shorting schmucks!
Interesting letter I found written by MIMV CEO Kasian Franks to the FCC in Sept 2010. Read his letter and tell me that it doesn't impress/reassure you that much more about the absolute genius running this company and the incredibely talented and successful team he has already assembled. This will be effing HUGE, no matter what manipulators can manage to to do share prices on any given day in the very short term.
I took advantage of the push down of share prices yesterday and today and I will at every step of the way going forward. Yes, I was lucky enough to get in within mere minutes of the first Microsoft PR coming out in Sept - so I got in cheap and made a killing within the first few hours. Ever since I've been digging up every piece of info on every name ever associated with MIMVI and as a result I have been loading up here sub .40 and will definitely continue to do so. I will go out on a limb and tell you (and no I'm not any type of insider, I am making an educated guess based on a lot of the public info that is available out there if you take the opportunity to do tons of DD as I have and continue to do) that I believe that there is a very strong possibility of a major deal involving Samsung about to hit at any time before Xmas - or even before US Thanksgiving IMO. Anyway here is the link to the FCC letter - how many CEO's of a 'simple' app search engine company get into things like..well just read it:
(PDF file)
http://fjallfoss.fcc.gov/ecfs/comment/view?id=6016054747
Definitely. Plus the word "Microsoft" wasn't in the headline so many that watch the news scrolls aren't aware of this news yet. As word spreads and the 8K filing confirms the PR people will be chasing. If they had put "Microsoft" in the headline this would have been into the .50's + in a matter of minutes.
The bigger picture here is the med - long term potential of a bidding war between the big boys to buy out this company - especially since Apple shuttered it's $50mm Chump...er.. "Chomp" app search purchase at the end of Sept.
The CEO has already put it out there that if any of the players offered $5.00 a share today he would seriously consider it. Sell at $5 today or continue to build and sell it for $20 a year or two from now - either way just an announcement of an offer being considered would send this into dollar land in a flash.
No worries. Once the 8K is filed this will fly. Thats usually how it is in OTC land. We all know where this is headed in the near future anyway - great buying opp here right now.
Agreed UHCougar - Just read this post. I agree re: bringing in a wider audience of potential shareholders. Continuing DD on this one, but I did pick up a number of shares today. The volume is still impressive and momentum goes a long way in raising that share price relatively quickly - I actually wouldn't be overly surprised if this reached into the $3's on the momentum given the somewhat low float.
I think its much higher. With Jeffrey E. Eberwein, Chairman of Lucas Energy Shareholders for Change giving notice to the board of directors that he is on his way to smack their collective arses I believe he will be instrumental in providing a huge boost in share price. Look into his recent history with other companies he holds that have not been meeting their potential - before his announced concerned shareholder's meetings and after. He is tremendously successful along with his team of partners in realizing major gains when he steps in to give mis-managed companies a wakeup call. Google his name and you will see his immpressive results with a number of undervalued companies - just this year alone - that he has been instrumental in causing those companies to realize 300% to 750% gains in a very short time frame. Very, very impressive. He's in the beginning stages of raising share value for LEI shareholders already (re:Sept 27th PR)
Any realistic price targets on LEI ? Interesting trading & level II action on this one today. Debating if I should open a larger position @ $2.28 - $2.30 right now. I like the insider buying and early DD appears to indicate an enterprise value comfortably higher than the current 60 mil mkt cap. Hmmm...
Sure did. I got in within a minute of the PR...LEI looks interesting for some quick action - was 2.54 pre mkt and open Just picked a few up @ 2.33 - 2.37 range - dropped below 2.37 just about 10 minutes ago...could get interesting as most shares were being snatched up in the 2.47 - 2.52 range all day
A very rich and wise man once said the key to attaining wealth in the stock world is to "Buy Right, Sit Tight" Buy Right being a reference to doing your homework to be sure that the stock you are investing in is the 'Right' one to go with - Sit Tight means just that, don't concern yourself with the day to day (or as some are known to monitor - minute by minute) movements of the stock price once you've evaluated the worth of the company, especially on a lower than average volume, depressed price type of trading day - Sit tight. Now, I see this has been pushed down on extremely low volume relative to recent investment level buys since the Microsoft PR first hit. Newbies should know that with a stock of this nature trading on the OTC, volatility is to be expected and also that anyone who constantly claims that they can foresee any type of extreme price swing -up or down- on any non material event (news) trading day is either full of __it or just plain delusional. I personally will not trade this type of OTC stock on a non event swing day, whatever direction it swings to, simply because after putting a large chunk of my time researching every aspect of a stock that I've ultimately decided to INVEST in, I refuse to put myself in a position that could require me to try and 'chase' the stock to regain a position due to some untimely announcement (news) that sets the stock price rocking on to another big run. The backgrounds of the people involved in this venture is incredibly impressive - having just one or two of the current top notch advisors in their corner would in itself be very encouraging, but the extensive list and depth of experienced and successful advisors backing MIMV is truly mind blowing to say the least. I, personally speaking, am fully prepared to buy even more MIMV on the dip. Bought Right, Sitting Tight.
Ciao
My 2 days of DD has determined that this is the real deal $$$. I was lucky enough to get in within seconds of the Microsoft pr (I was fiddling around with TDA's S or Swim platform when the news scrolled thru in real time) within minutes the HUGE climb began. I sold some shares at yesterdays open and started on what turned out to be continous DD on this company ever since the Microsoft PR. And I gotta say, I'm friggin stoked! Each piece of information I've dug up has solidified my decision to go into this one deeper for however long it takes for the stock to reach it's full potential. Sure, it always a rush to make some big money in just one or two days - but where this company is going will make the initial resistance price level look puny in comparison.
I believe that it is extremely likely that there has already been a good number of offers by more than a handful of interested entities to buy this company out - at a substantial premium to the recent 71.4 cent high. The probable decision to NOT sell the company to Microsoft or anyone else at this juncture was wise IMO for the following reason: many, many more contracts are about to be signed with MIMV in the coming hours, days, weeks and perhaps even months which will only increase the VALUE of this company very nicely. But I do believe that the time will arrive when the company will be sold to one of the big players at a much larger premium than any offers presented to date. Probaby sooner than later. Do some deep digging and I have little doubt that any educated person will reach the conclusion that I have reached - when the right time arrives the company will be sold well above the $2 - $5 per share numbers that have been discussed since the Microsoft annoucement was made. Higher valuation is being built as you read this. The fact that the first big PR announcement was the Microsoft deal - that is HUGE for bringing investors attention to a company that thus far had remained largely overlooked and undiscovered. But MIMV is now on the radar of a greater number of investors now and subsequent deal announcements involving more big name mobile tech players will only serve to increase the visibility and the value of this company before the day comes when the inevitable bidding war results in a nice, high merger/acquisition offer - probably surprising many of the people reading and/or posting here today. Just my take, after hours and hours of extensive digging and sifting thru information in all corners of the net - do your own extensive DD and see for yourselves.
Ciao
Float is only 5 Million - Correct?
I believe that many more big players are knocking on MVIV's door before and since the Microsoft announcement.
The Management and advisor team at this company is extremely impressive.
Most definitely a takeover target, but still much, much more value to be built (ie... Hundred$ of Million$) before any buyout offer would be seriously considered at a stock price as much as 50x higher than current trading.
Excellent prospects for short, medium and long term investors IMO.
Mimvi Enters Partnership Agreement with Microsoft PR Newswire "Press Releases US - English"
SUNNYVALE, Calif. , Sept. 25, 2012 /PRNewswire/ --Mimvi,Inc.(OTCQB: MIMV) has announced that it has finalized a partnership agreement with Microsoft Corp.The partnership will see Mimvi develop a number of products and services to complement Microsoft's Windows Azure and Windows Mobile 8 Platforms. The agreement also involves Microsoft making investments inMimviin the form of engineering services, software, and cash.
"We are delighted to be working with Microsoft," commented Kasian Franks , Mimvi 's founder, CVO and Chairman. Franks continued, "Microsoft shares our mobile vision of the future. Their tremendous expertise, resources and reach, combined with Mimvi 's best-in-class mobile app search technology is a very exciting proposition."
Mimvi 's CEO, Michael Poutre , echoed Franks' thoughts: "It is a privilege to work with Microsoft. Everyone at Mimvi is excited at the opportunities this partnership presents as we enter a mobile-dominant world. The synergies of this relationship will benefit stakeholders across the mobile value chain."
Exact terms of the agreement will not be disclosed at this time.
About Mimvi, Inc.
Headquartered in Sunnyvale, California , MIMVI, Inc. (OTCBB: MIMV) is a pure-play search and recommendation technology company. Its proprietary search and "intelligent" recommendation algorithms enable the search and discovery of Mobile Apps, Mobile Content and Mobile Products across multiple devices and platforms, including: Apple's iPhone and iPad, Google Android, BlackBerry, Windows Phone, Facebook and Web Apps . For more information, please visit: http://www.mimvi.com.
Mimvi Enters Partnership Agreement with Microsoft PR Newswire "Press Releases US - English"
SUNNYVALE, Calif. , Sept. 25, 2012 /PRNewswire/ --Mimvi,Inc.(OTCQB: MIMV) has announced that it has finalized a partnership agreement with Microsoft Corp.The partnership will see Mimvi develop a number of products and services to complement Microsoft's Windows Azure and Windows Mobile 8 Platforms. The agreement also involves Microsoft making investments inMimviin the form of engineering services, software, and cash.
"We are delighted to be working with Microsoft," commented Kasian Franks , Mimvi 's founder, CVO and Chairman. Franks continued, "Microsoft shares our mobile vision of the future. Their tremendous expertise, resources and reach, combined with Mimvi 's best-in-class mobile app search technology is a very exciting proposition."
Mimvi 's CEO, Michael Poutre , echoed Franks' thoughts: "It is a privilege to work with Microsoft. Everyone at Mimvi is excited at the opportunities this partnership presents as we enter a mobile-dominant world. The synergies of this relationship will benefit stakeholders across the mobile value chain."
Exact terms of the agreement will not be disclosed at this time.
About Mimvi, Inc.
Headquartered in Sunnyvale, California , MIMVI, Inc. (OTCBB: MIMV) is a pure-play search and recommendation technology company. Its proprietary search and "intelligent" recommendation algorithms enable the search and discovery of Mobile Apps, Mobile Content and Mobile Products across multiple devices and platforms, including: Apple's iPhone and iPad, Google Android, BlackBerry, Windows Phone, Facebook and Web Apps . For more information, please visit: http://www.mimvi.com.
CALI!!!
Today's News, August 15, 2011
8:02a
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year (Market Wire)
8:02a
China Auto Logistics Inc 2Q Net $2.31M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q Rev $126.2M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q EPS 12c >CALI (Dow Jones)
-------------------------------------------
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year
8:02a ET August 15, 2011 (Market Wire)
China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), one of China's leading developers of automobile-related websites, a top seller in China of imported luxury vehicles and a leading provider in China of automobile-related services, today announced a more than doubling in revenues from imported luxury auto sales and substantial top and bottom line gains in its automobile related services businesses combined to generate record 2011 second quarter and first half results.
In the second quarter ended June 30, 2011:
-- Net revenues increased 130% to $126.2 million compared with $54.8
million a year earlier, led by a 133% jump in sales of imported luxury
autos to $123.1 million;
-- Net income attributable to shareholders grew 23% to $2.3 million, or
$0.12 per share on 19.2 million weighted average shares, compared with
$1.9 million or $0.10 per share on 18.1 million weighted average
shares in the 2010 second quarter;
-- Once again the Company's web-based advertising services generated the
largest contribution to operating income in the quarter, as year over
year revenues grew 71% to $2 million and contributed $1.5 million to
second quarter income from operations, outpacing the $1.1 million
contributed by sales of automobiles. All other auto related services
businesses also generated increased operating income in the quarter
compared with the prior year.
For the six months ended June 30, 2011, revenues reached $207 million, an increase of 90% from $109 million a year earlier. Net income attributable to shareholders grew 29% from $3.4 million in the 2010 first half to $4.4 million or $0.23 per share compared with $0.19 per share a year earlier. The largest contributor to operating income in the six month period was web-based advertising services. Revenues grew 77% to approximately $4 million from $2.2 million in the prior year and generated $3 million in operating income in 2011, compared with a $2 million contribution from auto sales.
Highly Profitable Auto-related Services
"Once again," stated Mr. Tong Shiping, CEO and Chairman of the Company, "roughly two-thirds of our operating profits in the quarter were contributed by our auto related services, in particular, the very rapid growth we have continued to see in our Web-based Advertising Services, as we pursue our goal of becoming the leading automobile portal in China."
Mr. Tong added, "A key element in our success was the continuing successful integration of our www.goodcar.cn site into our www.cali.com.cn portal, where its popularity continues to grow with China's drivers for the discounts delivered to members. Going forward, we will expand 'goodcar' in line with the growth plans for our other sites, which we expect to expand from serving the information needs of consumers in 35 cities to 60 cities reaching more than 70% of China's auto buying public."
"In this outstanding quarter we took particular advantage of the very strong market in China for luxury imported autos, and continued our shift to the potentially more profitable high end of the market," stated Mr. Tong. "Reflecting this," he added, "the average price of the vehicles we sold in the quarter increased 41% year over year from $77,507 to $109,029 as unit sales increased 66% to 1,129 vehicles, together generating the 133% year over year increase in revenues."
As of June 30, 2011 the Company's facility line of credit with several of China's leading banks was $135 million, more than a doubling of the credit line since the end of 2010. This increase enabled continuing growth in the Company's auto-related financing services for imported auto dealers and, more recently, a growing number of domestic dealers. Mr. Tong commented, "We believe the very safe, short term inventory financing we provide to dealers will help open the door to developing other new, profitable services for them. We also believe having access to these credit lines in a period when China's banks have been tightening their loan policies provides us with a strong competitive advantage and reflects very well on our Company's financial strength and growth outlook."
Successful Above Market Raise for Expansion in the Domestic Auto Sector
On July 7, the Company was pleased to announce a $5.25 million private equity placement of 3 million unregistered shares at an above market price of $1.75 per share, which it expects to utilize in connection with plans to acquire and develop the largest domestic auto mall in its home city of Tianjin.
The Company saw the willingness of the accredited investors to acquire shares above their price in the market as a strong vote of confidence in the Company's shares which Mr. Tong believes are, "significantly undervalued mainly because of the prevailing negativity temporarily affecting all Chinese shares in the U.S."
In its news release on the equity sale, the Company also took the opportunity to counter any concerns about the growth potential of the Chinese auto market following its very extraordinary 32% growth in 2010. It cited the views of close observers of the market who believed an anticipated drop in oil prices and increased liquidity would spur the world's number one auto market to double digit growth levels in the second half of 2011, following the roughly 6% growth in passenger auto sales in the first half of the year.
The Company also announced plans for a significant new expansion into China's domestic auto market on the heels of its recent successes in growing domestic auto related services, such as its www.at160.com website for domestic auto buyers, and www.goodcar.cn for domestic auto drivers. Specifically, the Company expects to acquire a large auto mall in Tianjin that will sell over 70 different car models and become the largest mall in the city. The Company also believes the mall will be a key element in plans to develop and grow a variety of new online auto-related services for the very large and growing domestic auto market.
Continuing Strong Growth Ahead
"Over the past several quarters since becoming a publicly traded Company, I believe CALI has clearly and openly demonstrated that not only is it on an exciting growth track, but that management is very capable of developing well grounded growth strategies and successfully executing them," Mr. Tong stated. He continued, "As we enter the second half of 2011, it may well be looked on as the beginning of one of the most exciting new chapters in the Company's history, as we take another giant step forward, this time into the very large and growing domestic auto market in China. The opportunity is there for us and we intend to seize it, first with the acquisition and development of the domestic mall, and then with the further rapid expansion of our web-based auto-related services serving the full spectrum of auto sector buyers, dealers and drivers."
"As we move ahead," Mr. Tong added, "we will continue to be fully transparent and firmly believe we will be among the top Chinese companies to emerge strongly from this period of investor uncertainty."
Conference Call Invitation
The Company will discuss 2011 second quarter results during a live conference call and webcast on Wednesday, August 17th, at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally. Please ask for the China Auto Logistics 2011 Second Quarter Earnings Conference Call, Conference ID: 4464940. There will be a playback available until 08/24/11. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4464940.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00008B6C or at ViaVid's website at www.viavid.net.
SEE TABLE BELOW
About China Auto Logistics Inc. (CALI)
China Auto Logistics Inc. operates www.cali.com.cn, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of www.goodcar.cn, a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
CHINA AUTO LOGISTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Net revenue $126,226,569 $ 54,820,581 $207,437,369 $108,969,853
Cost of revenue 122,069,426 51,786,674 199,306,002 103,199,954
------------ ------------ ------------ ------------
Gross profit 4,157,143 3,033,907 8,131,367 5,769,899
------------ ------------ ------------ ------------
Operating expenses:
Selling and marketing 364,496 187,127 738,643 385,527
General and
administrative 667,018 292,362 1,349,834 684,672
------------ ------------ ------------ ------------
Total operating
expenses 1,031,514 479,489 2,088,477 1,070,199
------------ ------------ ------------ ------------
Income from operations 3,125,629 2,554,418 6,042,890 4,699,700
Other income (expenses)
Interest income 15,164 5,582 27,682 38,167
Interest expenses - (28,191) - (67,742)
Miscellaneous (1,490) 5,928 (10,577) 5,928
------------ ------------ ------------ ------------
Total other income
(expenses) 13,674 (16,681) 17,105 (23,647)
------------ ------------ ------------ ------------
Income before income
taxes 3,139,303 2,537,737 6,059,995 4,676,053
Income taxes 825,932 650,734 1,642,120 1,235,250
------------ ------------ ------------ ------------
Net income 2,313,371 1,887,003 4,417,875 3,440,803
Less: Net income
attributable to
noncontrolling
interests 27,171 25,798 54,541 51,152
------------ ------------ ------------ ------------
Net income attributable
to shareholders of
China Auto Logistics
Inc. $ 2,286,200 $ 1,861,205 $ 4,363,334 $ 3,389,651
============ ============ ============ ============
Earnings per share
attributable to
shareholders of China
Auto Logistics Inc.
- basic and diluted $ 0.12 $ 0.10 $ 0.23 $ 0.19
============ ============ ============ ============
Weighted average number
of common share
outstanding
- basic and diluted 19,163,427 18,100,000 19,163,427 18,100,000
============ ============ ============ ============
Contacts:
US Investors
Focus Asia Partners
Robert Agriogianis
bob@focusasiapartners.com
Tel: 973-520-8741
Press
Ken Donenfeld
kdonenfeld@dgiir.com
Tel: 212-425-5700
Fax: 646-381-9727
SOURCE: China Auto Logistics Inc.
mailto:bob@focusasiapartners.com
mailto:kdonenfeld@dgiir.com
CALI!!!
Today's News, August 15, 2011
8:02a
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year (Market Wire)
8:02a
China Auto Logistics Inc 2Q Net $2.31M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q Rev $126.2M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q EPS 12c >CALI (Dow Jones)
-------------------------------------------
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year
8:02a ET August 15, 2011 (Market Wire)
China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), one of China's leading developers of automobile-related websites, a top seller in China of imported luxury vehicles and a leading provider in China of automobile-related services, today announced a more than doubling in revenues from imported luxury auto sales and substantial top and bottom line gains in its automobile related services businesses combined to generate record 2011 second quarter and first half results.
In the second quarter ended June 30, 2011:
-- Net revenues increased 130% to $126.2 million compared with $54.8
million a year earlier, led by a 133% jump in sales of imported luxury
autos to $123.1 million;
-- Net income attributable to shareholders grew 23% to $2.3 million, or
$0.12 per share on 19.2 million weighted average shares, compared with
$1.9 million or $0.10 per share on 18.1 million weighted average
shares in the 2010 second quarter;
-- Once again the Company's web-based advertising services generated the
largest contribution to operating income in the quarter, as year over
year revenues grew 71% to $2 million and contributed $1.5 million to
second quarter income from operations, outpacing the $1.1 million
contributed by sales of automobiles. All other auto related services
businesses also generated increased operating income in the quarter
compared with the prior year.
For the six months ended June 30, 2011, revenues reached $207 million, an increase of 90% from $109 million a year earlier. Net income attributable to shareholders grew 29% from $3.4 million in the 2010 first half to $4.4 million or $0.23 per share compared with $0.19 per share a year earlier. The largest contributor to operating income in the six month period was web-based advertising services. Revenues grew 77% to approximately $4 million from $2.2 million in the prior year and generated $3 million in operating income in 2011, compared with a $2 million contribution from auto sales.
Highly Profitable Auto-related Services
"Once again," stated Mr. Tong Shiping, CEO and Chairman of the Company, "roughly two-thirds of our operating profits in the quarter were contributed by our auto related services, in particular, the very rapid growth we have continued to see in our Web-based Advertising Services, as we pursue our goal of becoming the leading automobile portal in China."
Mr. Tong added, "A key element in our success was the continuing successful integration of our www.goodcar.cn site into our www.cali.com.cn portal, where its popularity continues to grow with China's drivers for the discounts delivered to members. Going forward, we will expand 'goodcar' in line with the growth plans for our other sites, which we expect to expand from serving the information needs of consumers in 35 cities to 60 cities reaching more than 70% of China's auto buying public."
"In this outstanding quarter we took particular advantage of the very strong market in China for luxury imported autos, and continued our shift to the potentially more profitable high end of the market," stated Mr. Tong. "Reflecting this," he added, "the average price of the vehicles we sold in the quarter increased 41% year over year from $77,507 to $109,029 as unit sales increased 66% to 1,129 vehicles, together generating the 133% year over year increase in revenues."
As of June 30, 2011 the Company's facility line of credit with several of China's leading banks was $135 million, more than a doubling of the credit line since the end of 2010. This increase enabled continuing growth in the Company's auto-related financing services for imported auto dealers and, more recently, a growing number of domestic dealers. Mr. Tong commented, "We believe the very safe, short term inventory financing we provide to dealers will help open the door to developing other new, profitable services for them. We also believe having access to these credit lines in a period when China's banks have been tightening their loan policies provides us with a strong competitive advantage and reflects very well on our Company's financial strength and growth outlook."
Successful Above Market Raise for Expansion in the Domestic Auto Sector
On July 7, the Company was pleased to announce a $5.25 million private equity placement of 3 million unregistered shares at an above market price of $1.75 per share, which it expects to utilize in connection with plans to acquire and develop the largest domestic auto mall in its home city of Tianjin.
The Company saw the willingness of the accredited investors to acquire shares above their price in the market as a strong vote of confidence in the Company's shares which Mr. Tong believes are, "significantly undervalued mainly because of the prevailing negativity temporarily affecting all Chinese shares in the U.S."
In its news release on the equity sale, the Company also took the opportunity to counter any concerns about the growth potential of the Chinese auto market following its very extraordinary 32% growth in 2010. It cited the views of close observers of the market who believed an anticipated drop in oil prices and increased liquidity would spur the world's number one auto market to double digit growth levels in the second half of 2011, following the roughly 6% growth in passenger auto sales in the first half of the year.
The Company also announced plans for a significant new expansion into China's domestic auto market on the heels of its recent successes in growing domestic auto related services, such as its www.at160.com website for domestic auto buyers, and www.goodcar.cn for domestic auto drivers. Specifically, the Company expects to acquire a large auto mall in Tianjin that will sell over 70 different car models and become the largest mall in the city. The Company also believes the mall will be a key element in plans to develop and grow a variety of new online auto-related services for the very large and growing domestic auto market.
Continuing Strong Growth Ahead
"Over the past several quarters since becoming a publicly traded Company, I believe CALI has clearly and openly demonstrated that not only is it on an exciting growth track, but that management is very capable of developing well grounded growth strategies and successfully executing them," Mr. Tong stated. He continued, "As we enter the second half of 2011, it may well be looked on as the beginning of one of the most exciting new chapters in the Company's history, as we take another giant step forward, this time into the very large and growing domestic auto market in China. The opportunity is there for us and we intend to seize it, first with the acquisition and development of the domestic mall, and then with the further rapid expansion of our web-based auto-related services serving the full spectrum of auto sector buyers, dealers and drivers."
"As we move ahead," Mr. Tong added, "we will continue to be fully transparent and firmly believe we will be among the top Chinese companies to emerge strongly from this period of investor uncertainty."
Conference Call Invitation
The Company will discuss 2011 second quarter results during a live conference call and webcast on Wednesday, August 17th, at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally. Please ask for the China Auto Logistics 2011 Second Quarter Earnings Conference Call, Conference ID: 4464940. There will be a playback available until 08/24/11. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4464940.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00008B6C or at ViaVid's website at www.viavid.net.
SEE TABLE BELOW
About China Auto Logistics Inc. (CALI)
China Auto Logistics Inc. operates www.cali.com.cn, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of www.goodcar.cn, a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
CHINA AUTO LOGISTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Net revenue $126,226,569 $ 54,820,581 $207,437,369 $108,969,853
Cost of revenue 122,069,426 51,786,674 199,306,002 103,199,954
------------ ------------ ------------ ------------
Gross profit 4,157,143 3,033,907 8,131,367 5,769,899
------------ ------------ ------------ ------------
Operating expenses:
Selling and marketing 364,496 187,127 738,643 385,527
General and
administrative 667,018 292,362 1,349,834 684,672
------------ ------------ ------------ ------------
Total operating
expenses 1,031,514 479,489 2,088,477 1,070,199
------------ ------------ ------------ ------------
Income from operations 3,125,629 2,554,418 6,042,890 4,699,700
Other income (expenses)
Interest income 15,164 5,582 27,682 38,167
Interest expenses - (28,191) - (67,742)
Miscellaneous (1,490) 5,928 (10,577) 5,928
------------ ------------ ------------ ------------
Total other income
(expenses) 13,674 (16,681) 17,105 (23,647)
------------ ------------ ------------ ------------
Income before income
taxes 3,139,303 2,537,737 6,059,995 4,676,053
Income taxes 825,932 650,734 1,642,120 1,235,250
------------ ------------ ------------ ------------
Net income 2,313,371 1,887,003 4,417,875 3,440,803
Less: Net income
attributable to
noncontrolling
interests 27,171 25,798 54,541 51,152
------------ ------------ ------------ ------------
Net income attributable
to shareholders of
China Auto Logistics
Inc. $ 2,286,200 $ 1,861,205 $ 4,363,334 $ 3,389,651
============ ============ ============ ============
Earnings per share
attributable to
shareholders of China
Auto Logistics Inc.
- basic and diluted $ 0.12 $ 0.10 $ 0.23 $ 0.19
============ ============ ============ ============
Weighted average number
of common share
outstanding
- basic and diluted 19,163,427 18,100,000 19,163,427 18,100,000
============ ============ ============ ============
Contacts:
US Investors
Focus Asia Partners
Robert Agriogianis
bob@focusasiapartners.com
Tel: 973-520-8741
Press
Ken Donenfeld
kdonenfeld@dgiir.com
Tel: 212-425-5700
Fax: 646-381-9727
SOURCE: China Auto Logistics Inc.
mailto:bob@focusasiapartners.com
mailto:kdonenfeld@dgiir.com
CALI!!!
Today's News, August 15, 2011
8:02a
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year (Market Wire)
8:02a
China Auto Logistics Inc 2Q Net $2.31M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q Rev $126.2M >CALI (Dow Jones)
8:01a
China Auto Logistics Inc 2Q EPS 12c >CALI (Dow Jones)
-------------------------------------------
China Auto Logistics 2011 Second Quarter Set New Records; Revenues Increased 130% and Net Income Advanced 23% Year Over Year
8:02a ET August 15, 2011 (Market Wire)
China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), one of China's leading developers of automobile-related websites, a top seller in China of imported luxury vehicles and a leading provider in China of automobile-related services, today announced a more than doubling in revenues from imported luxury auto sales and substantial top and bottom line gains in its automobile related services businesses combined to generate record 2011 second quarter and first half results.
In the second quarter ended June 30, 2011:
-- Net revenues increased 130% to $126.2 million compared with $54.8
million a year earlier, led by a 133% jump in sales of imported luxury
autos to $123.1 million;
-- Net income attributable to shareholders grew 23% to $2.3 million, or
$0.12 per share on 19.2 million weighted average shares, compared with
$1.9 million or $0.10 per share on 18.1 million weighted average
shares in the 2010 second quarter;
-- Once again the Company's web-based advertising services generated the
largest contribution to operating income in the quarter, as year over
year revenues grew 71% to $2 million and contributed $1.5 million to
second quarter income from operations, outpacing the $1.1 million
contributed by sales of automobiles. All other auto related services
businesses also generated increased operating income in the quarter
compared with the prior year.
For the six months ended June 30, 2011, revenues reached $207 million, an increase of 90% from $109 million a year earlier. Net income attributable to shareholders grew 29% from $3.4 million in the 2010 first half to $4.4 million or $0.23 per share compared with $0.19 per share a year earlier. The largest contributor to operating income in the six month period was web-based advertising services. Revenues grew 77% to approximately $4 million from $2.2 million in the prior year and generated $3 million in operating income in 2011, compared with a $2 million contribution from auto sales.
Highly Profitable Auto-related Services
"Once again," stated Mr. Tong Shiping, CEO and Chairman of the Company, "roughly two-thirds of our operating profits in the quarter were contributed by our auto related services, in particular, the very rapid growth we have continued to see in our Web-based Advertising Services, as we pursue our goal of becoming the leading automobile portal in China."
Mr. Tong added, "A key element in our success was the continuing successful integration of our www.goodcar.cn site into our www.cali.com.cn portal, where its popularity continues to grow with China's drivers for the discounts delivered to members. Going forward, we will expand 'goodcar' in line with the growth plans for our other sites, which we expect to expand from serving the information needs of consumers in 35 cities to 60 cities reaching more than 70% of China's auto buying public."
"In this outstanding quarter we took particular advantage of the very strong market in China for luxury imported autos, and continued our shift to the potentially more profitable high end of the market," stated Mr. Tong. "Reflecting this," he added, "the average price of the vehicles we sold in the quarter increased 41% year over year from $77,507 to $109,029 as unit sales increased 66% to 1,129 vehicles, together generating the 133% year over year increase in revenues."
As of June 30, 2011 the Company's facility line of credit with several of China's leading banks was $135 million, more than a doubling of the credit line since the end of 2010. This increase enabled continuing growth in the Company's auto-related financing services for imported auto dealers and, more recently, a growing number of domestic dealers. Mr. Tong commented, "We believe the very safe, short term inventory financing we provide to dealers will help open the door to developing other new, profitable services for them. We also believe having access to these credit lines in a period when China's banks have been tightening their loan policies provides us with a strong competitive advantage and reflects very well on our Company's financial strength and growth outlook."
Successful Above Market Raise for Expansion in the Domestic Auto Sector
On July 7, the Company was pleased to announce a $5.25 million private equity placement of 3 million unregistered shares at an above market price of $1.75 per share, which it expects to utilize in connection with plans to acquire and develop the largest domestic auto mall in its home city of Tianjin.
The Company saw the willingness of the accredited investors to acquire shares above their price in the market as a strong vote of confidence in the Company's shares which Mr. Tong believes are, "significantly undervalued mainly because of the prevailing negativity temporarily affecting all Chinese shares in the U.S."
In its news release on the equity sale, the Company also took the opportunity to counter any concerns about the growth potential of the Chinese auto market following its very extraordinary 32% growth in 2010. It cited the views of close observers of the market who believed an anticipated drop in oil prices and increased liquidity would spur the world's number one auto market to double digit growth levels in the second half of 2011, following the roughly 6% growth in passenger auto sales in the first half of the year.
The Company also announced plans for a significant new expansion into China's domestic auto market on the heels of its recent successes in growing domestic auto related services, such as its www.at160.com website for domestic auto buyers, and www.goodcar.cn for domestic auto drivers. Specifically, the Company expects to acquire a large auto mall in Tianjin that will sell over 70 different car models and become the largest mall in the city. The Company also believes the mall will be a key element in plans to develop and grow a variety of new online auto-related services for the very large and growing domestic auto market.
Continuing Strong Growth Ahead
"Over the past several quarters since becoming a publicly traded Company, I believe CALI has clearly and openly demonstrated that not only is it on an exciting growth track, but that management is very capable of developing well grounded growth strategies and successfully executing them," Mr. Tong stated. He continued, "As we enter the second half of 2011, it may well be looked on as the beginning of one of the most exciting new chapters in the Company's history, as we take another giant step forward, this time into the very large and growing domestic auto market in China. The opportunity is there for us and we intend to seize it, first with the acquisition and development of the domestic mall, and then with the further rapid expansion of our web-based auto-related services serving the full spectrum of auto sector buyers, dealers and drivers."
"As we move ahead," Mr. Tong added, "we will continue to be fully transparent and firmly believe we will be among the top Chinese companies to emerge strongly from this period of investor uncertainty."
Conference Call Invitation
The Company will discuss 2011 second quarter results during a live conference call and webcast on Wednesday, August 17th, at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally. Please ask for the China Auto Logistics 2011 Second Quarter Earnings Conference Call, Conference ID: 4464940. There will be a playback available until 08/24/11. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4464940.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00008B6C or at ViaVid's website at www.viavid.net.
SEE TABLE BELOW
About China Auto Logistics Inc. (CALI)
China Auto Logistics Inc. operates www.cali.com.cn, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. In 2010, the Company completed the acquisition of www.goodcar.cn, a highly popular internet destination for auto drivers attracted by the discount cards offered on the site for a variety of automotive products and services including 5% discounts on gas purchases. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
CHINA AUTO LOGISTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Net revenue $126,226,569 $ 54,820,581 $207,437,369 $108,969,853
Cost of revenue 122,069,426 51,786,674 199,306,002 103,199,954
------------ ------------ ------------ ------------
Gross profit 4,157,143 3,033,907 8,131,367 5,769,899
------------ ------------ ------------ ------------
Operating expenses:
Selling and marketing 364,496 187,127 738,643 385,527
General and
administrative 667,018 292,362 1,349,834 684,672
------------ ------------ ------------ ------------
Total operating
expenses 1,031,514 479,489 2,088,477 1,070,199
------------ ------------ ------------ ------------
Income from operations 3,125,629 2,554,418 6,042,890 4,699,700
Other income (expenses)
Interest income 15,164 5,582 27,682 38,167
Interest expenses - (28,191) - (67,742)
Miscellaneous (1,490) 5,928 (10,577) 5,928
------------ ------------ ------------ ------------
Total other income
(expenses) 13,674 (16,681) 17,105 (23,647)
------------ ------------ ------------ ------------
Income before income
taxes 3,139,303 2,537,737 6,059,995 4,676,053
Income taxes 825,932 650,734 1,642,120 1,235,250
------------ ------------ ------------ ------------
Net income 2,313,371 1,887,003 4,417,875 3,440,803
Less: Net income
attributable to
noncontrolling
interests 27,171 25,798 54,541 51,152
------------ ------------ ------------ ------------
Net income attributable
to shareholders of
China Auto Logistics
Inc. $ 2,286,200 $ 1,861,205 $ 4,363,334 $ 3,389,651
============ ============ ============ ============
Earnings per share
attributable to
shareholders of China
Auto Logistics Inc.
- basic and diluted $ 0.12 $ 0.10 $ 0.23 $ 0.19
============ ============ ============ ============
Weighted average number
of common share
outstanding
- basic and diluted 19,163,427 18,100,000 19,163,427 18,100,000
============ ============ ============ ============
Contacts:
US Investors
Focus Asia Partners
Robert Agriogianis
bob@focusasiapartners.com
Tel: 973-520-8741
Press
Ken Donenfeld
kdonenfeld@dgiir.com
Tel: 212-425-5700
Fax: 646-381-9727
SOURCE: China Auto Logistics Inc.
mailto:bob@focusasiapartners.com
mailto:kdonenfeld@dgiir.com
Almost Time to make some real $$$ here!
We have 'The Uncut Gem" here with this one. Accumulate and hold. This is already a stock with a fair trade value of around $8 - $10 as of today. Q is out on Aug 15th or 16th, Pre-Market. It will only rise in value as the company continues to make profits hand over fist in the country with the hottest economy on the planet. The street will awaken to this fact soon. That is when your support and patience will be rewarded - many times over. CALI is beginning the blitz - last months rise from $1.20 to $3.80 in one day (and forced down by manipulators wanting some of the low float shares at ridiculously cheap cost) will look like a speck once this is pushed up to and held at or above its true,ever rising, value. Day traders need not apply.
I will post some great DD tomorrow. GLTA!
CALI to $10
CALI
CALI - Price/Sales: 0.11x (Actual) - (Industry Average: 0.70x)
CALI - Price/Book Value: 0.74x (Actual) - (Industry Average: 3.10x)
CALI - Operating Profit Margin: 4.21% (Actual) - (Industry Average: 4.70%)
CALI - Net Profit Margin: 3.05% (Actual) - (Industry Average: 3.47%)
CALI - Revenue Growth - MRQ: 49.98% (Actual) - (Industry Average - MRQ): 9.77%)
CALI - Revenue Growth - TTM: 27.00% (Actual) - (Industry Average - TTM): 14.48%)
Earnings growth at CALI outpaced revenue growth over the trailing twelve months. This result was better than that of the average company in the same industry where competitors earnings fell over the period.
CALI - Return On Equity: 23.61% (Actual) - (Industry Average: 12.50%)
CALI - Return On Assets: 10.24% (Actual) - (Industry Average: 2.80%)
CALI - Return On Investment: 23.81% (Actual) - (Industry Average: 4.55%)
CALI - Revenue Generated By Each Employee: $1,271,174 (Actual!) - (Industry Average: $0,645,082)
As you can see, CALI has consistently been one of the most efficient companies in the entire industry. With a Return on Assets, Return on Equity, and Revenues Per Employee of 10.24%, 23.61%, and $1,271,174 respectively, they are a company to be reckoned with - now and into the future as well.
CALI - Total Debt/Total Capital (MRQ): 50.51% (Actual) - which continues to improve.) - (Industry Average: 55.59%)
Validea Momentum Strategy based on book by Validea:
The EPS growth for this quarter relative to the same quarter a year earlier for CALI (37.50%) is above the minimum 18% that this methodology likes to see for a "good" growth company. Therefore, CALI passes the requirement.
Each year's EPS numbers should be better than the previous year's. One dip is allowed, but the following year's earnings should be a new high. According to this methodology, CALI, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were -0.05, 0.25, 0.32, 0.31, 0.44, passes this criterion. The one dip is considered acceptable, as earnings quickly rebounded after the decline.
Confirmation that a company's industry is attractive by confirming that at least one other company in the industry has a relative strength above 80. There is confirmation in CALI's industry (Auto & Truck Manufacturers), as there are 3 companies that have a relative strength at or above 80.
Companies who have consistently cut debt over the last 3 years, or who have a Debt/Equity ratio less than 2, are looked at favorably. CALI, which has a Debt/Equity ratio of 0.00%, passes this test.
Preferred companies must have a ROE of at least 17%. CALI's ROE of 23.6% is above the minimum 17% that this methodology likes to see, and therefore passes the criterion.
Shares outstanding should be less than 30 million, as fewer shares mean bigger price jumps when demand surges. However, there is no penalty for a large number of shares outstanding as long as all the other parameters are met. CALI currently has 19 million shares outstanding, which is favorable.
For the Value Investor based on book by Benjamin Graham:
SECTOR: CALI is neither a technology nor financial Company, and therefore this methodology is applicable.
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that meet this criterion display one of the attributes of a financially secure organization. The long-term debt for CALI is $0.0 million, while the net current assets are $37.1 million. CALI passes this test.
P/E RATIO: The Price/Earnings (P/E) ratio, based on the greater of the current PE or the PE using average earnings over the last 3 fiscal years, must be "moderate", which this methodology states is not greater than 15. Stocks with moderate P/Es are more defensive by nature. CALI's P/E of 4.10 (using the 3 year PE) passes this test.
RICE/BOOK RATIO: The Price/Book ratio must also be reasonable. That is, the Price/Book multiplied by P/E cannot be greater than 22. CALI's Price/Book ratio is 0.66, while the P/E is 4.10. CALI passes the Price/Book test.
Small Cap Growth Investor based on book by Motley Fool:
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for CALI (37.50% for EPS, and 49.97% for Sales) are good enough to pass.
CASH FLOW FROM OPERATIONS: A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. CALI's free cash flow of $0.88 per share passes this test.
PROFIT MARGIN CONSISTENCY: CALI's profit margin has been consistently increasing over the past three years (Current year: 3.11%, Last year: 2.58%, Two years ago: 2.10%), passing the requirement. It is a sign of good management and a healthy and competitive enterprise.
CASH AND CASH EQUIVALENTS: CALI's level of cash $17.7 million passes this criteria. If a company is a cash generator, like CALI, it has the ability to pay off debt (if it has any) or acquire other companies. Most importantly, good operations generate cash.
INVENTORY TO SALES: This methodology strongly believes that companies, especially small ones, should have tight control over inventory. It's a warning sign if a company's inventory relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Inventory to Sales for CALI was 7.72% last year, while for this year it is 7.39%. Since the inventory to sales is decreasing by -0.33% the stock passes this criterion.
ACCOUNT RECEIVABLE TO SALES: This methodology wants to make sure that a company's accounts receivable do not get significantly out of line with sales. It's a warning sign if a company's accounts receivable relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Accounts Receivable to Sales for CALI was 13.02% last year, while for this year it is 20.58%. Although the AR to sales is rising, it is below the max 30% that is allowed. The investor should still consider this stock because all other criteria appear very attractive.
LONG TERM DEBT/EQUITY RATIO: CALI's trailing twelve-month Debt/Equity ratio (0.00%) is at the best level according to this methodology because the superior companies that you are looking for don't need to borrow money in order to grow.
AVERAGE SHARES OUTSTANDING: CALI has not been significantly increasing the number of shares outstanding within recent years which is a good sign. CALI currently has 19.0 million shares outstanding. This means the company is not taking any measures, with regards to the number of shares, that will dilute or devalue the stock.
SALES: Companies with sales less than $500 million should be chosen. It is among these small-cap stocks that investors can find "an uncut gem", ones that institutions won't be able to buy yet. CALI's sales of $284.7 million based on trailing 12 month sales, are great, making this company one such "prospective gem". CALI passes the sales test.
INCOME TAX PERCENTAGE: CALI's income tax paid expressed as a percentage of pretax income this year was (26.95%) and last year (26.55%) are greater than 20% which is an acceptable level. If the tax rate is below 20% this could mean that the earnings that were reported were unrealistically inflated due to the lower level of income tax paid. This is not a concern with CALI.
Contrarian Investor based on book by David Dreman:
P/E RATIO: The P/E of a company should be in the bottom 20% of the overall market. Dreman uses the PE based on five year average earnings for cyclicals to counteract the fluctations in earnings they experience. CALI's P/E of 5.80 meets the bottom 20% criterion (below 8.61), and therefore passes this test.
PRICE/CASH FLOW (P/CF) RATIO: The P/CF of a company should be in the bottom 20% of the overall market. CALI's P/CF of 3.14 meets the bottom 20% criterion (below 5.19) and therefore passes this test.
PRICE/BOOK (P/B) VALUE: The P/B value of a company should be in the bottom 20% of the overall market. CALI's P/B is currently 0.66, which meets the bottom 20% criterion (below 0.75), and it therefore passes this test.
CURRENT RATIO: A prospective company must have a strong Current Ratio (greater than or equal to the average of it's industry [1.23]). This is one identifier of financially strong companies, according to this methodology. CALI's current ratio of 1.52 passes the test.
PAYOUT RATIO: A good indicator that a company has the ability to pay or even raise its dividend is a low payout ratio. The payout ratio for CALI is 0.00%. CALI passes the payout criterion.
RETURN ON EQUITY: The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. This methodology feels that the ROE should be greater than the top one third of ROE from among the top 1500 large cap stocks, which is 18.11%, and would consider anything over 27% to be negative. The ROE for CALI of 23.61% is high enough to pass this criterion.
LOOK AT THE TOTAL DEBT/EQUITY: The company must have a low Debt/Equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20% or should be less than the average Debt/Equity for its industry of 499.27%. CALI's Total Debt/Equity of 103.16% passes the criterion.
Growth Investor based on book by Martin Zweig:
SALES GROWTH RATE: An important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (50%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (12.6%) of the current year. Sales growth for the prior must be greater than the latter. For CALI this criterion has been met.
CURRENT QUARTER EARNINGS: The criteria is that the current EPS be positive. CALI's EPS ($0.11) passes this test.
QUARTERLY EARNINGS ONE YEAR AGO: The EPS for the quarter one year ago must be positive. CALI's EPS for this same quarter reported last year ($0.08) pass this test.
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: The growth rate of the current quarter's earnings compared to the same quarter a year ago must also be positive. CALI's growth rate of 37.50% passes this test.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: If the growth rate of the prior three quarter's earnings, 45.83%, (versus the same three quarters a year earlier) is greater than the growth rate of the current quarter earnings, 37.50%, (versus the same quarter one year ago) AND only if the growth rate in earnings between the current quarter and the same quarter one year ago is greater than 30%, then the stock would pass. The growth rate over this period for CALI is 37.5%, and it therefore passes this test.
TOTAL DEBT/EQUITY RATIO: A final criterion is that a company must not have a high level of debt. A high level of total debt, due to interest expenses, can have a very negative effect on earnings if business moderately turns down. If a company does have a high level, an investor would want to avoid that particular stock altogether. CALI's Debt/Equity (103.16%) is not considered high relative to its industry (499.27%) and it therefore passes this test.
Price/Sales Investor based on book by Kenneth Fisher:
PRICE/SALES RATIO: The prospective company should have a low Price/Sales ratio. Cyclical companies with Price/Sales ratios below or equal to 0.4 are tremendous values and should be sought. CALI's P/S ratio of 0.1 based on trailing 12 month sales, is well below 0.4 which is considered very favorable. It passes this methodology's P/S ratio test with flying colors.
Price/Sales Ratio: The Price/Sales ratio is the most important variable according to this methodology. The prospective company should have a low Price/Sales ratio. CALI's Price/Sales ratio of 0.10 passes this criterion.
FREE CASH PER SHARE: This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will likely soon be out of business. CALI's free cash per share of 0.88 passes this criterion.
Growth/Value Investor based on book by James P. O'Shaughnessy:
PRICE/SALES RATIO: The Price/Sales ratio should be below 1.5. This value criterion, coupled with the growth criterion, identify growth stocks that are still cheap to buy. CALI's Price/Sales ratio of 0.10, based on trailing 12 month sales, strongly passes this criterion.
China Auto Logistic Inc.
No. 87 No. 8 Coastal Way Floor 2
Construction Bank FTZ
Tianjin, 300461
United States - Map
Phone: 86 22 2576 2771
Website: http://www.chinaautologisticsinc.com
About CALI - What they do:
Full Time Employees: 224
The Company's position as one of China's leading sellers of luxury imported autos with a base of 3,000 agents and dealers in more than 100 cities nationwide. Underlying this growth, the Company provides a unique "one stop" customs clearance, storage, delivery and finance service to imported auto dealers nationwide and is #1 in Tianjin (China's leading port for auto imports). The Company also operates www.at188.com, the largest website in China for imported auto dealers and customers.
It has expanded into the much larger domestic auto market with comprehensive, real-time, accurate trading information on the auto markets in 12 key cities throughout China, matching buyers with local dealers in a visually exciting, interactive format. CALI also operates www.at160.com, a national site serving China's domestic auto buyers and dealers. Consumers in each of the 12 cities the Company is now covering may access information on their local market with a single click. The Company's website business is being fueled by continuing strong domestic growth in auto sales and rapidly growing internet usage. Going forward, CALI expects significant growth in website advertising and web-based services. In addition, planned new online services will support the needs of the nation's auto dealers and provide consumers with the information they need to make purchase decisions in a market where only 20+ out of 1000 consumers owns an automobile compared with 600 out of 1000 in the U.S.
China Auto Logistics Inc.is engaged in automobile sales, custom clearance services, storage services and national transportation. It is also one-stop service provider in Tianjin, providing dealer financing to its customers. Its core business is selling the domestically manufactured automobile model, CHARADE. In November 2010, the Company completed the acquisition of www.goodcar.cn .
Sale of Imported Automobiles:
The Company conducts its sales operations of imported automobiles primarily through Tianjin Seashore New District Shisheng Business Trading Group Co. Ltd. (Shisheng) and Tianjin Zhengji International Trading Corp. (Zhengji). It sells approximately 25% of the vehicles to authorized dealers like Ford or Lexus, 70% to free traders or wholesalers located in inland China or non-port cities and 5% to government agencies and individual customers. Its sales network has approximately 3,000 agents and dealers in more than 100 cities. Shisheng is also an authorized agent for Mercedes Benz ambulances and fire trucks. It also works closely with automobile dealers in the overseas market.
Financing Services:
The Company’s financing services include letter of credit issuance services, purchase deposit financing, and import duty advance services. It provides financing services to its customers using its facility lines of credit with its banks. It earns a service fee for drawing its facility lines related to customers’ purchases of automobiles and payment of import taxes. These service providers are located in the port cities of Dalin, Tianjin, Shanghai and Guangzhou.
Automobile Import Value Added Services:
The Company is focusing to transform into a logistic provider. The imported automobile service industry has developed to address these barriers by providing customs clearance, storage and delivery services for the dealers and agents. These service providers are located in the port cities of Dalin, Tianjin, Shanghai and Guangzhou. The Company offers a value-added delivery service to inland China by air, by sea or by truck.
In addition, the company operates two Websites, www.at160.com, which provides quotes and other information on domestically manufactured automobiles; and www.at188.com that offers information on imported automobiles for the industry and individuals.
CALI - Observation, Facts and a glimpse of Future Trends:
CALI continues to expand its access to customer financing capital, has continued positive earnings, and a bright, profitable future going forward. With the PE and Price to Book ratios revealing the most appropriate valuation measures, CALI is currently an extremely underpriced stock with an actual PE value of (incredibly) approx 3.06x. As a comparison, the sector average is around 17x.
CALI's average share price, using the industry average ratio, should be priced at a minimum of$7+/share after the latest 10Q report and future guidance - yet CALI, despite 20 stright quarters of strong double digit growth combined with tidy profits and a very low share float, has somehow floundered below it's true value by a factor of at least 6+ (ie $1.45 x 6 = $8.70) and the fact that we will continue to witness the trend of investors fleeing a fair number of stocks tied to increasingly nervous companies based in the highly indebted, revenue needy (ie..practically bankrupt goverments) and increasingly currency weak economies of the western countries and you are now looking at a recipe for investors to inject some serious coin into company shares like CALI as investors search out profitable companies based in countries, such as China, in which one can invest with a fair amount of confidence of uninterupted strong growth and profits.
Recently CALI has suffered from a lack of visibility and focus by a large majority of level headed investors, many who refuse to invest in a stock based merely on the stocks current trading price rather taking the time to do some DD to discover a stock such as CALI that has an actual true value well above $5, creating a bizarre circle where the stock is underpriced because too many investors won't touch stock below a certain price level - leaving the stock looped in a vicious circle, continuing to be be extremely undervalued and underpriced. But not forever. At some point the stock breaks out and reaches forward towards its true valuation. It is my belief that CALI is very close to breaking out upwards toward its true price per share valuation. Very, very close.
The recent incredibly huge burst of volume in early July 2011, which saw an average trading day volume of around 12,000 shares per day explode to over 2.2 Million shares trade in just a single day (on July 7th), has most definitely increased visibility substantually, and, when combined with the handful of currently reported institutional holdings of CALI stock (who, by the way, usually won't even look at any stock trading below at least $5/share, let alone invest in it), clearly portends an upward valuation adjustment in share price as stronger hands and smart investors institute a steady scoop up available shares at these insanely low price levels from inexperienced/impatient sellers, slowly (so far) but surely increasing the percentage of ownership in CALI stock within their portfolios.
CALI stock, clearly, has been manipulated down with laser-like precision (price-wise) - an obvious targeting - especially after seeing more than 10% of all outstanding stock trade in one single day, which uncloaked the open but apparently largely unoticed tamping down of the stock price - even in the face of such an unprecedented and extreme surge of volume in CALI's trading pattern followed by a lighting fast drop in stock price, again, despite the clearly obvious lack of any strong selling pressure that would cause the stock price to drop so quickly and so extremely during the relatively low volume trading days that followed over the course of a mere 3 weeks! With the continued above double digit growth, true fair value of the stock should reach into the $9+ - $12/share range soon.
They are about to conduct a Blitz campaign in order to raise this stock to it's proper trading value (.46/share profit of last year will easily be above .50/share profit this year and is CALI expected to continue to grow at a double digit pace for many years to come. If real investors can buy and hold (next Q report is Aug 15 or 16) a good amount of the low float, thus knocking these penny profit day traders out of the way for a bit, this puppy is ready to set new highs in the $8 - $10+ range. For Real - Check it!
Company Executives - Biographies:
Name Age Since Current Position
Shiping,Tong 50 2008 Chairman of the Board, President, Chief Executive Officer
Mr. Tong Shiping is Chairman of the Board, President, Chief Executive Officer of China Auto Logistics Inc. Mr. Tong has served as President and Chief Executive Officer of the Company since 1995, when Shisheng was founded. He earned his Bachelors degree in computer science from the China Air Force Engineering University. Mr. Tong is also Director of the Tianjin Car Logistics Association.
Xinwei,Wang 53 2001 Chief Financial Officer, Vice President, Treasurer
Ms. Wang Xinwei is Chief Financial Officer, Vice President, Treasurer of China Auto Logistics Inc. Ms. Wang has served as the Chief Financial Officer, Treasurer and Vice President of the Company since joining Shisheng in 2001. She earned her Bachelors degree in industry accounting from Tianjin Radio and TV University. Ms. Wang is a qualified Chinese Certified Public Accountant.
Yangqian,Li 44 2003 Chief Operating Officer, Vice President
Mr. Li Yangqian is Chief Operating Officer, Vice President of China Auto Logistics Inc. Mr. Li has served as Vice President and Chief Operating Officer of the Company since 2003. He earned his Masters degree in engineering from Tianjin University. From 2001 to 2003, Mr. Li served as the regional manager for Tianjin OTIS Elevator. Mr. Li is also the deputy chairman of the China Automobile Dealers Association – Marketing Division.
Weihong,Cheng48 2008 Senior Vice President, Secretary, Head - Human Resources and General Administration, Director
Ms. Cheng Weihong is Senior Vice President, Secretary, Head - Human Resources and General Administration, Director of China Auto Logistics Inc. Ms. Cheng has served as Secretary and Senior Vice President (Head of Human Resources and General Administration) of the Company since 1995. She earned her Bachelors degree from Shijazhuang Military Medical University. Ms. Cheng is also a co-founder of Shisheng and has served as the Chairwoman of Shisheng since 1995.
Bin Yang 38 2008 Senior Vice President, General Manager, Head - Sales, Director
Mr. Yang Bin is Senior Vice President, General Manager, Head - Sales and Director of China Auto Logistics Inc. Mr. Yang has served as the Senior Vice President, General Manager, Head of Sales since 2003, when he joined Shisheng. He earned his Bachelors degree from Foreign Trade Nankai University and an Executive M.B.A. from Tsing Hua University. Prior to joining Shisheng, Mr. Yang served as the general manager of Tianjin Yingzhijie Car Trading Corp. from 1999 to 2003. Mr. Yang also serves with a Division of the China Association of Imported Automobiles.
Howard,Barth 58 2008 Independent Director
Mr. Howard S. Barth is an Independent Director of China Auto Logistics Inc. Mr. Barth has operated his own public accounting firm in Toronto, Canada since 1985, and has over 26 years of experience as a certified accountant. He has served as a director of Yukon Gold Corporation, Inc. (dual listed on OTCBB and TSX) since May 2005 (and has served previously as chairman of its audit committee) and was its chief executive officer and president in 2006. He is currently a director of Offshore Petroleum Corp. and recently rejoined Yukon Gold Corporation, Inc. as a director. He is a member of the Canadian Institute of Chartered Accountants and the Ontario Institute of Chartered Accountants. He earned his B.A. and M.B.A. at York University.
Yang,Gao 37 2008 Independent Director
Mr. Gao Yang is an Independent Director of China Auto Logistics Inc. Mr. Gao worked for the Bank of China from 1994-2002 and was responsible for its institution monetary credit business. Since 2002, he has served as the Institution Sales Manager at the Tianjin Branch of Shanghai Pudong Development Bank. Mr. Gao has experience in evaluating and controlling credit risk, as well as experience in investment, M&A and re-organizations. He received a bachelor’s degree in Economics from Tianjin University of Finance and Economics.
Xiaoyan,Kong 43 2008 Independent Director
Ms. Kong Xiaoyan is an Independent Director of China Auto Logistics Inc. Ms. Kong started her career in 1993 with the Tianjin Foreign Trade Law Firm, practicing foreign economic law. She worked as a China Legal Consular for Livasari & Co. from 1997-1999. From 1999-2004, she worked for Jiade Attorneys of Law as partner and senior partner. Since May 2004, she has practiced with Tianjin Jiade Hengshi Attorneys of Law as senior partner. Ms. Kong received her master’s degree in Law at Zhongshan University.
Zhong,Qu 48 2008 Independent Director» Insider Trading
Ms. Qu Zhong is an Independent Director of China Auto Logistics Inc. Ms. Qu joined Tianjin Jinma Property Development Corp. in 1992 as assistant manager and was later promoted to vice General Manager. Since 1995, Ms. Qu has served as the sales manager for Tianjin Guotai Anju Property Development and Management Corp. Ms. Qu received her bachelor’s degree in Engineering from Xi’An Telecommunication Engineering University, and in 2004, she received an Executive MBA from Tianjin University of Finance and Economics.
CALI
CALI
CALI to $10
CALI - Price/Sales: 0.11x (Actual) - (Industry Average: 0.70x)
CALI - Price/Book Value: 0.74x (Actual) - (Industry Average: 3.10x)
CALI - Operating Profit Margin: 4.21% (Actual) - (Industry Average: 4.70%)
CALI - Net Profit Margin: 3.05% (Actual) - (Industry Average: 3.47%)
CALI - Revenue Growth - MRQ: 49.98% (Actual) - (Industry Average - MRQ): 9.77%)
CALI - Revenue Growth - TTM: 27.00% (Actual) - (Industry Average - TTM): 14.48%)
Earnings growth at CALI outpaced revenue growth over the trailing twelve months. This result was better than that of the average company in the same industry where competitors earnings fell over the period.
CALI - Return On Equity: 23.61% (Actual) - (Industry Average: 12.50%)
CALI - Return On Assets: 10.24% (Actual) - (Industry Average: 2.80%)
CALI - Return On Investment: 23.81% (Actual) - (Industry Average: 4.55%)
CALI - Revenue Generated By Each Employee: $1,271,174 (Actual!) - (Industry Average: $0,645,082)
As you can see, CALI has consistently been one of the most efficient companies in the entire industry. With a Return on Assets, Return on Equity, and Revenues Per Employee of 10.24%, 23.61%, and $1,271,174 respectively, they are a company to be reckoned with - now and into the future as well.
CALI - Total Debt/Total Capital (MRQ): 50.51% (Actual) - which continues to improve.) - (Industry Average: 55.59%)
Validea Momentum Strategy based on book by Validea:
The EPS growth for this quarter relative to the same quarter a year earlier for CALI (37.50%) is above the minimum 18% that this methodology likes to see for a "good" growth company. Therefore, CALI passes the requirement.
Each year's EPS numbers should be better than the previous year's. One dip is allowed, but the following year's earnings should be a new high. According to this methodology, CALI, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were -0.05, 0.25, 0.32, 0.31, 0.44, passes this criterion. The one dip is considered acceptable, as earnings quickly rebounded after the decline.
Confirmation that a company's industry is attractive by confirming that at least one other company in the industry has a relative strength above 80. There is confirmation in CALI's industry (Auto & Truck Manufacturers), as there are 3 companies that have a relative strength at or above 80.
Companies who have consistently cut debt over the last 3 years, or who have a Debt/Equity ratio less than 2, are looked at favorably. CALI, which has a Debt/Equity ratio of 0.00%, passes this test.
Preferred companies must have a ROE of at least 17%. CALI's ROE of 23.6% is above the minimum 17% that this methodology likes to see, and therefore passes the criterion.
Shares outstanding should be less than 30 million, as fewer shares mean bigger price jumps when demand surges. However, there is no penalty for a large number of shares outstanding as long as all the other parameters are met. CALI currently has 19 million shares outstanding, which is favorable.
For the Value Investor based on book by Benjamin Graham:
SECTOR: CALI is neither a technology nor financial Company, and therefore this methodology is applicable.
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that meet this criterion display one of the attributes of a financially secure organization. The long-term debt for CALI is $0.0 million, while the net current assets are $37.1 million. CALI passes this test.
P/E RATIO: The Price/Earnings (P/E) ratio, based on the greater of the current PE or the PE using average earnings over the last 3 fiscal years, must be "moderate", which this methodology states is not greater than 15. Stocks with moderate P/Es are more defensive by nature. CALI's P/E of 4.10 (using the 3 year PE) passes this test.
RICE/BOOK RATIO: The Price/Book ratio must also be reasonable. That is, the Price/Book multiplied by P/E cannot be greater than 22. CALI's Price/Book ratio is 0.66, while the P/E is 4.10. CALI passes the Price/Book test.
Small Cap Growth Investor based on book by Motley Fool:
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for CALI (37.50% for EPS, and 49.97% for Sales) are good enough to pass.
CASH FLOW FROM OPERATIONS: A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. CALI's free cash flow of $0.88 per share passes this test.
PROFIT MARGIN CONSISTENCY: CALI's profit margin has been consistently increasing over the past three years (Current year: 3.11%, Last year: 2.58%, Two years ago: 2.10%), passing the requirement. It is a sign of good management and a healthy and competitive enterprise.
CASH AND CASH EQUIVALENTS: CALI's level of cash $17.7 million passes this criteria. If a company is a cash generator, like CALI, it has the ability to pay off debt (if it has any) or acquire other companies. Most importantly, good operations generate cash.
INVENTORY TO SALES: This methodology strongly believes that companies, especially small ones, should have tight control over inventory. It's a warning sign if a company's inventory relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Inventory to Sales for CALI was 7.72% last year, while for this year it is 7.39%. Since the inventory to sales is decreasing by -0.33% the stock passes this criterion.
ACCOUNT RECEIVABLE TO SALES: This methodology wants to make sure that a company's accounts receivable do not get significantly out of line with sales. It's a warning sign if a company's accounts receivable relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Accounts Receivable to Sales for CALI was 13.02% last year, while for this year it is 20.58%. Although the AR to sales is rising, it is below the max 30% that is allowed. The investor should still consider this stock because all other criteria appear very attractive.
LONG TERM DEBT/EQUITY RATIO: CALI's trailing twelve-month Debt/Equity ratio (0.00%) is at the best level according to this methodology because the superior companies that you are looking for don't need to borrow money in order to grow.
AVERAGE SHARES OUTSTANDING: CALI has not been significantly increasing the number of shares outstanding within recent years which is a good sign. CALI currently has 19.0 million shares outstanding. This means the company is not taking any measures, with regards to the number of shares, that will dilute or devalue the stock.
SALES: Companies with sales less than $500 million should be chosen. It is among these small-cap stocks that investors can find "an uncut gem", ones that institutions won't be able to buy yet. CALI's sales of $284.7 million based on trailing 12 month sales, are great, making this company one such "prospective gem". CALI passes the sales test.
INCOME TAX PERCENTAGE: CALI's income tax paid expressed as a percentage of pretax income this year was (26.95%) and last year (26.55%) are greater than 20% which is an acceptable level. If the tax rate is below 20% this could mean that the earnings that were reported were unrealistically inflated due to the lower level of income tax paid. This is not a concern with CALI.
Contrarian Investor based on book by David Dreman:
P/E RATIO: The P/E of a company should be in the bottom 20% of the overall market. Dreman uses the PE based on five year average earnings for cyclicals to counteract the fluctations in earnings they experience. CALI's P/E of 5.80 meets the bottom 20% criterion (below 8.61), and therefore passes this test.
PRICE/CASH FLOW (P/CF) RATIO: The P/CF of a company should be in the bottom 20% of the overall market. CALI's P/CF of 3.14 meets the bottom 20% criterion (below 5.19) and therefore passes this test.
PRICE/BOOK (P/B) VALUE: The P/B value of a company should be in the bottom 20% of the overall market. CALI's P/B is currently 0.66, which meets the bottom 20% criterion (below 0.75), and it therefore passes this test.
CURRENT RATIO: A prospective company must have a strong Current Ratio (greater than or equal to the average of it's industry [1.23]). This is one identifier of financially strong companies, according to this methodology. CALI's current ratio of 1.52 passes the test.
PAYOUT RATIO: A good indicator that a company has the ability to pay or even raise its dividend is a low payout ratio. The payout ratio for CALI is 0.00%. CALI passes the payout criterion.
RETURN ON EQUITY: The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. This methodology feels that the ROE should be greater than the top one third of ROE from among the top 1500 large cap stocks, which is 18.11%, and would consider anything over 27% to be negative. The ROE for CALI of 23.61% is high enough to pass this criterion.
LOOK AT THE TOTAL DEBT/EQUITY: The company must have a low Debt/Equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20% or should be less than the average Debt/Equity for its industry of 499.27%. CALI's Total Debt/Equity of 103.16% passes the criterion.
Growth Investor based on book by Martin Zweig:
SALES GROWTH RATE: An important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (50%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (12.6%) of the current year. Sales growth for the prior must be greater than the latter. For CALI this criterion has been met.
CURRENT QUARTER EARNINGS: The criteria is that the current EPS be positive. CALI's EPS ($0.11) passes this test.
QUARTERLY EARNINGS ONE YEAR AGO: The EPS for the quarter one year ago must be positive. CALI's EPS for this same quarter reported last year ($0.08) pass this test.
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: The growth rate of the current quarter's earnings compared to the same quarter a year ago must also be positive. CALI's growth rate of 37.50% passes this test.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: If the growth rate of the prior three quarter's earnings, 45.83%, (versus the same three quarters a year earlier) is greater than the growth rate of the current quarter earnings, 37.50%, (versus the same quarter one year ago) AND only if the growth rate in earnings between the current quarter and the same quarter one year ago is greater than 30%, then the stock would pass. The growth rate over this period for CALI is 37.5%, and it therefore passes this test.
TOTAL DEBT/EQUITY RATIO: A final criterion is that a company must not have a high level of debt. A high level of total debt, due to interest expenses, can have a very negative effect on earnings if business moderately turns down. If a company does have a high level, an investor would want to avoid that particular stock altogether. CALI's Debt/Equity (103.16%) is not considered high relative to its industry (499.27%) and it therefore passes this test.
Price/Sales Investor based on book by Kenneth Fisher:
PRICE/SALES RATIO: The prospective company should have a low Price/Sales ratio. Cyclical companies with Price/Sales ratios below or equal to 0.4 are tremendous values and should be sought. CALI's P/S ratio of 0.1 based on trailing 12 month sales, is well below 0.4 which is considered very favorable. It passes this methodology's P/S ratio test with flying colors.
Price/Sales Ratio: The Price/Sales ratio is the most important variable according to this methodology. The prospective company should have a low Price/Sales ratio. CALI's Price/Sales ratio of 0.10 passes this criterion.
FREE CASH PER SHARE: This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will likely soon be out of business. CALI's free cash per share of 0.88 passes this criterion.
Growth/Value Investor based on book by James P. O'Shaughnessy:
PRICE/SALES RATIO: The Price/Sales ratio should be below 1.5. This value criterion, coupled with the growth criterion, identify growth stocks that are still cheap to buy. CALI's Price/Sales ratio of 0.10, based on trailing 12 month sales, strongly passes this criterion.
China Auto Logistic Inc.
No. 87 No. 8 Coastal Way Floor 2
Construction Bank FTZ
Tianjin, 300461
United States - Map
Phone: 86 22 2576 2771
Website: http://www.chinaautologisticsinc.com
About CALI - What they do:
Full Time Employees: 224
The Company's position as one of China's leading sellers of luxury imported autos with a base of 3,000 agents and dealers in more than 100 cities nationwide. Underlying this growth, the Company provides a unique "one stop" customs clearance, storage, delivery and finance service to imported auto dealers nationwide and is #1 in Tianjin (China's leading port for auto imports). The Company also operates www.at188.com, the largest website in China for imported auto dealers and customers.
It has expanded into the much larger domestic auto market with comprehensive, real-time, accurate trading information on the auto markets in 12 key cities throughout China, matching buyers with local dealers in a visually exciting, interactive format. CALI also operates www.at160.com, a national site serving China's domestic auto buyers and dealers. Consumers in each of the 12 cities the Company is now covering may access information on their local market with a single click. The Company's website business is being fueled by continuing strong domestic growth in auto sales and rapidly growing internet usage. Going forward, CALI expects significant growth in website advertising and web-based services. In addition, planned new online services will support the needs of the nation's auto dealers and provide consumers with the information they need to make purchase decisions in a market where only 20+ out of 1000 consumers owns an automobile compared with 600 out of 1000 in the U.S.
China Auto Logistics Inc.is engaged in automobile sales, custom clearance services, storage services and national transportation. It is also one-stop service provider in Tianjin, providing dealer financing to its customers. Its core business is selling the domestically manufactured automobile model, CHARADE. In November 2010, the Company completed the acquisition of www.goodcar.cn .
Sale of Imported Automobiles:
The Company conducts its sales operations of imported automobiles primarily through Tianjin Seashore New District Shisheng Business Trading Group Co. Ltd. (Shisheng) and Tianjin Zhengji International Trading Corp. (Zhengji). It sells approximately 25% of the vehicles to authorized dealers like Ford or Lexus, 70% to free traders or wholesalers located in inland China or non-port cities and 5% to government agencies and individual customers. Its sales network has approximately 3,000 agents and dealers in more than 100 cities. Shisheng is also an authorized agent for Mercedes Benz ambulances and fire trucks. It also works closely with automobile dealers in the overseas market.
Financing Services:
The Company’s financing services include letter of credit issuance services, purchase deposit financing, and import duty advance services. It provides financing services to its customers using its facility lines of credit with its banks. It earns a service fee for drawing its facility lines related to customers’ purchases of automobiles and payment of import taxes. These service providers are located in the port cities of Dalin, Tianjin, Shanghai and Guangzhou.
Automobile Import Value Added Services:
The Company is focusing to transform into a logistic provider. The imported automobile service industry has developed to address these barriers by providing customs clearance, storage and delivery services for the dealers and agents. These service providers are located in the port cities of Dalin, Tianjin, Shanghai and Guangzhou. The Company offers a value-added delivery service to inland China by air, by sea or by truck.
In addition, the company operates two Websites, www.at160.com, which provides quotes and other information on domestically manufactured automobiles; and www.at188.com that offers information on imported automobiles for the industry and individuals.
CALI - Observation, Facts and a glimpse of Future Trends:
CALI continues to expand its access to customer financing capital, has continued positive earnings, and a bright, profitable future going forward. With the PE and Price to Book ratios revealing the most appropriate valuation measures, CALI is currently an extremely underpriced stock with an actual PE value of (incredibly) approx 3.06x. As a comparison, the sector average is around 17x.
CALI's average share price, using the industry average ratio, should be priced at a minimum of$7+/share after the latest 10Q report and future guidance - yet CALI, despite 20 stright quarters of strong double digit growth combined with tidy profits and a very low share float, has somehow floundered below it's true value by a factor of at least 6+ (ie $1.45 x 6 = $8.70) and the fact that we will continue to witness the trend of investors fleeing a fair number of stocks tied to increasingly nervous companies based in the highly indebted, revenue needy (ie..practically bankrupt goverments) and increasingly currency weak economies of the western countries and you are now looking at a recipe for investors to inject some serious coin into company shares like CALI as investors search out profitable companies based in countries, such as China, in which one can invest with a fair amount of confidence of uninterupted strong growth and profits.
Recently CALI has suffered from a lack of visibility and focus by a large majority of level headed investors, many who refuse to invest in a stock based merely on the stocks current trading price rather taking the time to do some DD to discover a stock such as CALI that has an actual true value well above $5, creating a bizarre circle where the stock is underpriced because too many investors won't touch stock below a certain price level - leaving the stock looped in a vicious circle, continuing to be be extremely undervalued and underpriced. But not forever. At some point the stock breaks out and reaches forward towards its true valuation. It is my belief that CALI is very close to breaking out upwards toward its true price per share valuation. Very, very close.
The recent incredibly huge burst of volume in early July 2011, which saw an average trading day volume of around 12,000 shares per day explode to over 2.2 Million shares trade in just a single day (on July 7th), has most definitely increased visibility substantually, and, when combined with the handful of currently reported institutional holdings of CALI stock (who, by the way, usually won't even look at any stock trading below at least $5/share, let alone invest in it), clearly portends an upward valuation adjustment in share price as stronger hands and smart investors institute a steady scoop up available shares at these insanely low price levels from inexperienced/impatient sellers, slowly (so far) but surely increasing the percentage of ownership in CALI stock within their portfolios.
CALI stock, clearly, has been manipulated down with laser-like precision (price-wise) - an obvious targeting - especially after seeing more than 10% of all outstanding stock trade in one single day, which uncloaked the open but apparently largely unoticed tamping down of the stock price - even in the face of such an unprecedented and extreme surge of volume in CALI's trading pattern followed by a lighting fast drop in stock price, again, despite the clearly obvious lack of any strong selling pressure that would cause the stock price to drop so quickly and so extremely during the relatively low volume trading days that followed over the course of a mere 3 weeks! With the continued above double digit growth, true fair value of the stock should reach into the $9+ - $12/share range soon.
They are about to conduct a Blitz campaign in order to raise this stock to it's proper trading value (.46/share profit of last year will easily be above .50/share profit this year and is CALI expected to continue to grow at a double digit pace for many years to come. If real investors can buy and hold (next Q report is Aug 15 or 16) a good amount of the low float, thus knocking these penny profit day traders out of the way for a bit, this puppy is ready to set new highs in the $8 - $10+ range. For Real - Check it!
Company Executives - Biographies:
Name Age Since Current Position
Shiping,Tong 50 2008 Chairman of the Board, President, Chief Executive Officer
Mr. Tong Shiping is Chairman of the Board, President, Chief Executive Officer of China Auto Logistics Inc. Mr. Tong has served as President and Chief Executive Officer of the Company since 1995, when Shisheng was founded. He earned his Bachelors degree in computer science from the China Air Force Engineering University. Mr. Tong is also Director of the Tianjin Car Logistics Association.
Xinwei,Wang 53 2001 Chief Financial Officer, Vice President, Treasurer
Ms. Wang Xinwei is Chief Financial Officer, Vice President, Treasurer of China Auto Logistics Inc. Ms. Wang has served as the Chief Financial Officer, Treasurer and Vice President of the Company since joining Shisheng in 2001. She earned her Bachelors degree in industry accounting from Tianjin Radio and TV University. Ms. Wang is a qualified Chinese Certified Public Accountant.
Yangqian,Li 44 2003 Chief Operating Officer, Vice President
Mr. Li Yangqian is Chief Operating Officer, Vice President of China Auto Logistics Inc. Mr. Li has served as Vice President and Chief Operating Officer of the Company since 2003. He earned his Masters degree in engineering from Tianjin University. From 2001 to 2003, Mr. Li served as the regional manager for Tianjin OTIS Elevator. Mr. Li is also the deputy chairman of the China Automobile Dealers Association – Marketing Division.
Weihong,Cheng48 2008 Senior Vice President, Secretary, Head - Human Resources and General Administration, Director
Ms. Cheng Weihong is Senior Vice President, Secretary, Head - Human Resources and General Administration, Director of China Auto Logistics Inc. Ms. Cheng has served as Secretary and Senior Vice President (Head of Human Resources and General Administration) of the Company since 1995. She earned her Bachelors degree from Shijazhuang Military Medical University. Ms. Cheng is also a co-founder of Shisheng and has served as the Chairwoman of Shisheng since 1995.
Bin Yang 38 2008 Senior Vice President, General Manager, Head - Sales, Director
Mr. Yang Bin is Senior Vice President, General Manager, Head - Sales and Director of China Auto Logistics Inc. Mr. Yang has served as the Senior Vice President, General Manager, Head of Sales since 2003, when he joined Shisheng. He earned his Bachelors degree from Foreign Trade Nankai University and an Executive M.B.A. from Tsing Hua University. Prior to joining Shisheng, Mr. Yang served as the general manager of Tianjin Yingzhijie Car Trading Corp. from 1999 to 2003. Mr. Yang also serves with a Division of the China Association of Imported Automobiles.
Howard,Barth 58 2008 Independent Director
Mr. Howard S. Barth is an Independent Director of China Auto Logistics Inc. Mr. Barth has operated his own public accounting firm in Toronto, Canada since 1985, and has over 26 years of experience as a certified accountant. He has served as a director of Yukon Gold Corporation, Inc. (dual listed on OTCBB and TSX) since May 2005 (and has served previously as chairman of its audit committee) and was its chief executive officer and president in 2006. He is currently a director of Offshore Petroleum Corp. and recently rejoined Yukon Gold Corporation, Inc. as a director. He is a member of the Canadian Institute of Chartered Accountants and the Ontario Institute of Chartered Accountants. He earned his B.A. and M.B.A. at York University.
Yang,Gao 37 2008 Independent Director
Mr. Gao Yang is an Independent Director of China Auto Logistics Inc. Mr. Gao worked for the Bank of China from 1994-2002 and was responsible for its institution monetary credit business. Since 2002, he has served as the Institution Sales Manager at the Tianjin Branch of Shanghai Pudong Development Bank. Mr. Gao has experience in evaluating and controlling credit risk, as well as experience in investment, M&A and re-organizations. He received a bachelor’s degree in Economics from Tianjin University of Finance and Economics.
Xiaoyan,Kong 43 2008 Independent Director
Ms. Kong Xiaoyan is an Independent Director of China Auto Logistics Inc. Ms. Kong started her career in 1993 with the Tianjin Foreign Trade Law Firm, practicing foreign economic law. She worked as a China Legal Consular for Livasari & Co. from 1997-1999. From 1999-2004, she worked for Jiade Attorneys of Law as partner and senior partner. Since May 2004, she has practiced with Tianjin Jiade Hengshi Attorneys of Law as senior partner. Ms. Kong received her master’s degree in Law at Zhongshan University.
Zhong,Qu 48 2008 Independent Director» Insider Trading
Ms. Qu Zhong is an Independent Director of China Auto Logistics Inc. Ms. Qu joined Tianjin Jinma Property Development Corp. in 1992 as assistant manager and was later promoted to vice General Manager. Since 1995, Ms. Qu has served as the sales manager for Tianjin Guotai Anju Property Development and Management Corp. Ms. Qu received her bachelor’s degree in Engineering from Xi’An Telecommunication Engineering University, and in 2004, she received an Executive MBA from Tianjin University of Finance and Economics.
CALI
News:Cambodian Ventures Addresses Recent Increase in Share Volume and Price
2/3/2006 10:44:21 AM
LOWELL, MA AND PHNOM PENH, CAMBODIA, Feb 03, 2006 (MARKET WIRE via COMTEX) -- Cambodian Ventures Limited ( CMBV ), responded today to shareholder inquiries regarding the recent spike in share price and volume.
Gary Fineberg, CEO of Cambodian Ventures Limited, stated: "We have had numerous inquiries regarding yesterday's surge in share volume and price. As we stated to those that have inquired, it is the company's policy not to specifically comment on these matters. Having said this, we want our shareholders to know that, as stated in an earlier press release, we are working on a significant mining joint venture in Cambodia that will be finalized and detailed in an upcoming press release."
Safe Harbor Statement: The statements, other than the statements of historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations.
CONTACT:
Cambodian Ventures Limited
1-(978) 654-5217
www.cambodianventures.com
SOURCE: Cambodian Ventures Limited
'06 shaping up to be a very good year - Cambodian Ventures Limited Announces Broadened Business Strategy
12/20/2005 4:15:02 PM
LOWELL, MA AND PHNOM PENH, CAMBODIA, Dec 20, 2005 (MARKET WIRE via COMTEX) -- Cambodian Ventures Limited ( CMBV ), today announced a broadened business strategy.
Gary Fineberg, CEO of Cambodian Ventures, today announced an enhanced business strategy to take advantage of the many business and investment opportunities in Cambodia and Southeast Asia.
Gary stated, "We are by no means changing our strategy to obtain licenses for the exploration and mining of precious minerals in Cambodia. We have one joint venture agreement in place and are in the process of negotiating two other agreements. We are being very careful in how we invest our capital in these mining ventures. We are determined to minimize risk and to insure maximum return on our investment. Because of our stature as a publicly traded company on a U.S. exchange and our ability to raise capital, we are being presented a number of business opportunities under consideration for the company to pursue.
"Among projects under consideration are opportunities to develop 'build, operate and transfer' toll roads from the Angkor Wat temples in Siem Reap province, to the much older Angkorian temples in Preah Vihear and Kampong Thom provinces. Tourism in Cambodia has exploded in the last few years due to interest in the historical and archeological temples in these regions. Under these agreements, we would raise the capital to develop the highway infrastructure and collect tolls to generate revenue. The economics look very promising.
"Additionally we have been presented opportunities to invest in and acquire gaming licenses in different provinces in Cambodia. Gaming in Cambodia has become very popular due to its proximity to China and Vietnam. Except for lotteries, gaming in each of those countries is illegal for its citizens.
"Our agreement to acquire 25% of Canadian Biomed Systems (CBMS) is an example of this broadened business strategy. CBMS will market products providing education, protection, and prevention for the deadly avian influenza A virus (H5N1), also known as 'Bird Flu,' among humans."
The company will continue to release updates on its broadened business strategy in the coming weeks.
Safe Harbor Statement: The statements, other than the statements of historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations.
CONTACT:
Cambodian Ventures Limited
1-(978) 654-5217
www.cambodianventures.com
SOURCE: Cambodian Ventures Limited
http://www.cambodianventures.com
Then again.....
.0015 X .0021
Impatient seller appears to be gone.
Nite ask @ .0027, SCHB @ .003
Someone lost their patience.
Pity.
Current ask is NITE @ .0023
Once we move thru these 'sell on news' twits, we are based strongly to move up to the next level with the mining news later this week.
GLTA!
Canadian Bio Med Systems Inc. website:
http://www.canadianbiomed.com
Cambodian Ventures Limited Reaches Definitive Agreement to Acquire Interest in a Biomedical Company Specializing in Human Avian Influenza Solutions
11/3/2005 4:14:21 PM
LOWELL, MA AND PHNOM PENH, CAMBODIA AND MONTREAL, Nov 03, 2005 (MARKET WIRE via COMTEX) -- Cambodian Ventures Limited ( CMBV ), announced today that it has reached a definitive agreement to acquire up to 25% of Montreal based Canadian Bio Med Systems Inc.
CBMS will focus on providing education, preventive and protective products, as well as anti-influenza medications.
Canadian Bio Med Systems (CBMS) is a company recently formed to provide solutions to the general public in dealing with the containment of the deadly avian influenza A virus (H5N1), also known as "Bird Flu," among humans.
In conjunction with developing a consistent source of Tamiflu for use in the treatment of H5N1, the company is pursuing the evaluation of a treatment of Avian Flu through the use of low dose Oral Interferon, which is available for sale in Cambodia, Laos and Vietnam. Low dose Oral Interferon is manufactured by Amarillo Biosciences, Inc. and distributed in South East Asia by Global Kinetics of Cambodia.
CBMS's goal is to provide education and products to prevent the spread of Avian Flu, protect individuals who live or travel through areas of risk, and to provide available treatment modalities that are available in various countries that are affected.
Among the founders of CBMS is Dr. George Tsoukas, M.D., Endocrinologist, Associate Professor, McGill University Health Centre, Montreal, Quebec. Dr. Tsoukas has extensive experience in medical education and has produced and directed a popular television program explaining medical conditions to the public. Dr. Tsoukas was chief examiner for the Quebec College of Endocrinologists. He obtained his medical degree at McGill University and received further training in internal medicine, cardiology, and endocrinology. He is a fellow in the Royal College of Physicians and Surgeons of Canada.
Canadian Bio Med Systems web site www.canadianbiomed.com
Safe Harbor Statement: The statements, other than the statements of historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations.
CONTACT:
Cambodian Ventures Investor Relations
1-416-356-4737
www.cambodianventures.com
SOURCE: Cambodian Ventures Limited
http://www.cambodianventures.com
Yes. It's time
For a pr.
Agreed. HDSN joins bringing the number of mm's showing on Level II @ 7 now.
SCHB, NITE, HILL, FRGP, HDSN, MDAS, SEAB - all represented. ETRD showed up last week - wonder if they too will show up here again this week.
Another new mm joins the bid (FRGP) .0025 X .003
New Market Maker has joined the bid (FANC)
Bid lineup is:
NITE - .0015
SCHB - .0015
FANC - .0015
ASK:
SCHB - .0025
NITE - .0035
HILL - .0045
SEAB - .0650
Board info needs to be updated. Where are the moderators?
Less than $30,000 worth of shares traded this down to .0015 yesterday with most shares traded in the .0021 - .0026 range. In contrast, $200,000 worth of shares traded this up to .007 Wednesday with the majority of shares trading in the .005 - .007 range. Majority of money is holding.
B/A is currently .0015(NITE, SCHB) X .0025(MDAS)
Looks like SCHB taking advantage of low volume to try and shake some shares out. Moved ask to only .0026 LOL TALK ABOUT A BARGAIN!!!
Gap is FIRMLY filled now for sure. Buying pressure and/or news sends this right back up!
See you in PennyLand next week.
3 new MarketMakers appearing this week looking for shares. Seems that this little gem is starting to be discovered!
That's the 2nd PR today..It's gonna be a very interesting couple of weeks here.
Nice start - Nice volume - HOD .007 -> more to come.