Securities a Rather Secure Stock
Wednesday, August 15th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
Is there any good news left in this marketplace? There is, but only on an individual basis. I really think that stock trading action over the next month or two is going to be very difficult. If there is a defining trend, the likelihood is that it will be with lower stock prices.
So, I can only repeat what I’ve been saying for quite some time. It’s time to sit tight and play a strong defense. It’s going to be a difficult time to be an equity speculator over the very near term. This is the way it goes. Sometimes the market is hot, sometimes it’s not.
One of my absolute favorite companies just reported excellent financial results in its second quarter of 2007. China Security & Surveillance Technology Inc. (OTCBB/CSCT.OB) is a high-risk investment that’s really done well over the last year. The company manufactures and installs security and surveillance systems through its wholly owned subsidiary, Golden Group Corporation (Shenzhen) Limited. The company has a manufacturing facility located in Shenzhen and a research collaboration agreement with Beijing University. Basically, if it’s related to security and surveillance, China Security & Surveillance sells it in China.
According to the company, its revenues in the second quarter of 2007 grew a whopping 551% to $52.1 million, up from revenues of $8.0 million generated in the second quarter of 2006. The company cited that 78% of its total revenues in the latest second quarter were generated organically, while the rest was through acquisition.
Net income in the second quarter of 2007 grew 72% to $4.3 million, or $0.11 per diluted share, as compared to net income of $2.5 million, or $0.10 per diluted share, generated in the second quarter of 2006.
This company has been on a tear lately, buying up all kinds of smaller security companies in China. Its goal is to become a leading player in China’s security industry and create a recognizable brand which can sell to big corporate and government customers.
This stock has already done very well on the stock market. I think it will continue to be an excellent wealth creator over the coming years. This company is a perfect example of an attractive, speculative investment opportunity.
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Tags: china, stock market, stock prices
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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.




