Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Finding a China Stock Worthy of Your Investment Dollars

Wednesday, December 13th, 2006
By for Profit Confidential

In my continual search for great stocks in which to invest, I find myself drawn more and more to China. There’s no doubt that stocks from China are high-risk securities, but, then again, so are all stocks.

Lots of China stocks are actually listed on American stock exchanges, although most aren’t doing that great. In fact, many China stocks are currently way down from their highs, and the underlying fundamentals of the businesses are weak.

What’s happened? Well, a lot of new China listings represent companies that are just too small, so they generate only token revenues.

In a bid to raise capital from an eager investor base, many Chinese companies are now listed on the North American exchanges. But they’re just too fly-by-night. The businesses aren’t well established enough to make for an attractive investment.

I’d guess that for every ten China stocks listed on our stock exchanges, only one is worthy of following.

With this in mind, here’s a stock worthy of your time. Consider my latest China stock, China Security & Surveillance Technology Inc. (OTCBB/CSCT). The company may also trade under the stock symbol (OTCBB/CSSTF), so it would be wise to double check the symbol with your broker.

  • Profitable Options Trading Made Simple...

    "I'm offering you the easy, shortened version of a $17,000 Harvard-type options trading program that could generate you tens of thousands of dollars a month for as long as you want." ~ George Leong, B.Comm.

    Full story here.

The company trades on the over-the-counter bulletin board, and it manufactures and installs security and surveillance systems through its wholly owned subsidiary, Golden Group Corporation (Shenzhen) Limited. The company sells digital video recorders, home security systems, Internet video servers, and… you name it; if its related to security, this company sells it.

One of the most attractive features of this risk-capital investment opportunity is its growth. Past growth isn’t necessarily indicative of future growth, but the company’s prospects seem solid enough.

According to the company, in the third quarter of 2006, it generated revenues of $43.4 million, representing an increase of 247% over the revenues of $12.5 million it generated in the comparable third quarter.

Net income grew 205% to $10.3 million, or $0.37 per diluted share, up from the net income of $3.4 million, or $0.16 per diluted share, generated in the third quarter of 2005.

Now, of course, a $10-million profit on just over $40 million of sales is an outstanding accomplishment. So if you’re into speculating in China stocks, China Security is worth further investigation. Before you jump right in, just beware of the high investment risk inherent in China stocks, as well as other OTCBB listings.

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

This is an entirely free service. No credit card required.

We hate spam as much as you do.
Check out our privacy policy.

Mitchell Clark - Equity Markets Specialist, Financial AdvisorMitchell Clark, B. Comm. is a Senior Editor at Lombardi Financial specializing in large- and micro-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Income for Life and Micro-Cap Reporter. Mitchell, who has been with Lombardi Financial for 17 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. Add Mitchell Clark to your Google+ circles

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.