Hongchang International Company Ltd (HCIL)

[Dream]

I like this one. They earned almost .01/shr for the first Q and had an increase of revenue (That's very impressive given the current economic conditions). There book value alone is around .09/shr.

They are on track to make .04/shr for this year. So a forward PE now would be about 2.5. This should not be trading down here. I will continue to accumulate.

From the Q...


During the first quarter of 2009 we successfully transitioned our marketing focus away from the higher risk, less profitable incentivized marketing arena to a more efficient, non-incentivized marketing approach, resulting in significantly higher profit margins when compared to the first quarter of 2008. While revenues for the first quarter of 2009 were up only slightly compared to the first quarter 2008, profitability increased by a significant amount.




Our overall financial condition and liquidity continue to improve. We expect revenues and earnings will continue to grow. Our biggest challenge continues to be in the area of maintaining sufficient credit card processing capabilities to keep up with our growth. We are negotiating several new processing options that we believe will relieve that strain. While conventional merchant accounts are unreasonably confining and may affect our progress, the industry is beginning to recognize the problems related to conventional merchant accounts and we expect to see modified options develop in the marketplace.




Our market continues to be highly competitive. We believe our product offerings and marketing strategies are among the strongest in the industry. During the upcoming year we intend to focus on these areas along with a commitment to increasing customer retention through improved customer service and more targeted marketing.