China concept is hot. SOHU, SINA and NTES are major three Chinese companies traded in US. There are other smaller players such as CHINA, CTRP and etc. Almost all are full valued, except one less known company undetected for long time.
CHCL.OB, China Continental, Inc. focuses on the planting, harvesting and sale of forage grass. It is located in East Ujimqin Qi, in Inner Mongolia, in the People's Republic of China. The Company is planning to leverage its technologies, scientific planting methods and modern management techniques to establish a grassland area in China, and it expects to utilize American machinery and imported seeds. Beijing will host 2008 Olympic Games. Traditionally, Beijing has environment problems, high wind, lack of water, air pollution. Beijing is planting to increase grass area in Beijing by 1,000% by 2008. Even though, China is a huge agricultural country for feeding more than 1 billion people, traditionally, China does not have the technology on planting grass and trees. China is heavily dependent on importing grass seeds from North America and Ireland the two places producing hardy grass fitting Beijing's environments. CHCL.OB has 2 locations. The head quarter is north east to Beijing. The reporting office is in Tianjin which is next to Beijing. CHCL.OB will take full advantage for Beijing's needs for hardy imported grass.
CHCL.OB data according to Yahoo Finance,
Market Cap (intraday): 10.92M
Enterprise Value (22-Feb-04)3: -8.79M <-- A GREAT MERGER TARGET
Trailing P/E (ttm): N/A
Forward P/E (fye 31-Dec-04)1: 0.00
PEG Ratio (5 yr expected)1: N/A
Price/Sales (ttm): 0.95
Price/Book (mrq): 0.07 <-- EXTREMELY UNDERVALUED
Enterprise Value/Revenue (ttm)3: -0.72
Enterprise Value/EBITDA (ttm)3: -1.52
Revenue (ttm): 12.14M
Revenue Per Share (ttm): 0.043
Revenue Growth (lfy)3: -22.50%
Gross Profit (ttm)2: 2.48M
EBITDA (ttm): 5.80M <-- A BETTER INDICATOR FOR PROFITS
Balance Sheet
Total Cash (mrq): 19.72M <-- HUGE CASH
Total Cash Per Share (mrq): 0.07 <-- SHARE PRICE SHOULD BE ABOVE THAT
Total Debt (mrq)2: 0 <-- NO DEBT
Total Debt/Equity (mrq): 0
Current Ratio (mrq): 11.125
Book Value Per Share (mrq): 0.625 <-- LONG TERM PRICE TARGET
Cash Flow Statement
From Operations (ttm): 12.10M <-- GOOD NUMBER
According to its most recently SEC filing on Dec 03, 2003, CHCL.OB's total equity is at $175M. Cash is at $19.715M. 280M shares outstanding. "Because of the seasonality of the Company's business, management believes that the majority of the Company's revenue will be earned in the fourth quarter of the calendar year." Q4 ends on Dec 31, 2003. The Q4 and full year will be reported soon. We believe, when Q4 numbers are out, CHCL.OB should be at least at its cash level which is $19.715M/280M=$0.0685 per share. CHCL.OB is traded between 0.04 and 0.05 recently. As Feb 22, 2004, the price is 0.039 There is a (0.0685/0.039)-1*%= 75% potential gain from its current level in before its coming Q4 release. We think the down trend risk is limited because it is traded below cash value and has China concept and 2008 Beijing Olympics concept. With a 75% potential gain and limited risk, we believe it is a STRONG BUY at 0.039.
eDealSeek.com Stock Deal Dept
2004/02/22
Document URL: http://edealseek.com/stocks/chcl.ob.htm
quote:
Originally posted by salem:
revenues totaled $0
all sales are in Q4 only.
please read their lastest SEC filing. They book everything in Q4. It is China based company, so according rules are different here.
quote:
Originally posted by Stock Picks:
all sales are in Q4 only.
please read their lastest SEC filing. They book everything in Q4. It is China based company, so according rules are different here.
CHCL now sell grass to some company in China, so they only get the sales in Q4(when the grass is harvested in fall and sold out till winter)