A Major Chinese Wealth Creator
Friday, September 14th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
One of my favorite companies has been rallying lately. China Security & Surveillance Technology, Inc. (OTCBB/CSCT) just hit a new record high of over $20.00 per share. This is particularly impressive as the broader market has been lackluster at best.
The company recently gave a presentation on itself at the Roth Capital Partners New York Conference at The Westin New York. Sometimes all it takes is a meet-and-greet for an institutional investor to get behind a stock. Although I didn’t attend this conference, I’ve seen this situation before.
An institutional investor knows as much as it can about a company, but holds back taking on a position until it gets a chance to meet with company management. If they don’t seem too wacky, often, that’s all it takes to confirm the story.
As mentioned many times in this column, China Security & Surveillance Technology offers a compelling growth story in China’s fractured security market. Just think of all those new offices and factories that need a basic security system for employees. Add in a determined company with an eye on consolidation and creating a real brand, and you’ve got the makings of a major success story.
What this company needs now is a NASDAQ listing and it needs it in a hurry. Even though it doesn’t make much difference from a technical point of view, investors view a company’s listing on a major stock market as another small step that legitimizes the story.
Many Chinese stocks begin trading on the Over-The-Counter Bulletin Board, and as they achieve a certain success and get to an appropriate size, they opt to list on the NASDAQ or NYSE. I really like it when companies do this because some institutional investors won’t invest in companies that don’t trade on a major market.
China Security & Surveillance Technology continues to be a great investment with staying power. I think this company will continue to be a major wealth creator over the next several years.
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Tags: china, chinese stocks, stock market
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.



