Dear Valued Subscribers,
Coming off three consecutive alerts that have shown many of our subscribers combined returns of over 900%, we couldn't be more thrilled to bring our subscribers our first NASDAQ pick of the year!
After completing our due diligence, we are excited to bring you our next "Mega Bagger Alert" on:
China Infrastructure Investment Corporation, ( CIIC)
Before we jump in to who CIIC is, and why we like them, let us repeat that this is our first NASDAQ alert of the year. We believe this is important for our subscribers to keep in mind because by trading on the NASDAQ there is more potential exposure, which could equal large returns!
Now about the company:
China Infrastructure Investment Corporation, ( CIIC) incorporated in Nevada, USA and headquartered in Henan Province, China.
CIIC is engaged in the investment, construction, operation and management of the Pinglin Expressway toll road and the rental of petrol stations and service districts along the toll roads.
The Pinglin Expressway is an important passage from the northwest region to the southeast coastal region of China. Toll revenue from vehicles passing through the Expressway's six toll gates (South Pingdingshan, Pingdingshan New Town, Baofeng, Xiaotun, Ruzhou and Wenquan) is the primary source of the Company's revenue.
This expressway couldn't be a more attractive location. Currently the Henan province is the most populated province in China with over 97 million people.
With numbers like that, it's no surprise that China has attracted more private funding for expressway construction than any other country in the world!
We always are looking for companies with this kind of growth potential, and growth is exactly what CIIC is focusing on.
CIIC is actively pursuing additional acquisition and development opportunities in infrastructure projects, including expressways, electricity, water supply and bio fuel facilities.
With the possible future acquisition of the Taiao Expressway, it will make CIIC the largest non-state owned expressway investment corporation in the Henan province!
In addition, CIIC announced last month that they have retained Four Points Capital as it's exclusive strategic business advisor to assist the company with comprehensive evaluation and further development of its strategic growth plan!
This plan includes CIIC's diversification from toll roads and related business, to energy production and transportation, alternative energy materials, construction, and other infrastructure segments!
We want to show you a few key company statistics that we believe will make you as excited about CIIC as we are:
-At the end of the companies 2nd quarter (12/31/2009) CIIC saw an increase in Net Income of 526% from the same time the previous year.
-CIIC 's revenue increased approximately $18.0 million, or 46.8% from fiscal year 2007 (Mainly attributed to China's continuous population and traffic increase)
-CIIC 's Gross profit increased approximately $11.8 million, or 37.9%, for the fiscal year ended June 30 2008.
-CIIC currently has 375 full time employees on staff and was trading over 100% higher than where it is currently just this past December!
The Chairman and CEO, Mr Li Xipeng recently commented on these very numbers,
"We are very pleased with the substantial advance we achieved in net income in both the second quarter and six month periods. Further, we continue to anticipate that barring unusual events such as the November snowstorm, toll growth on the Expressway should accelerate in 2010 in line with China's gradually improving economy, especially in the Henan province where the urbanization process is ongoing."
In our opinion, with China's economy improving, and population steadily increasing, we believe that CIIC could potentially be setting themselves up for continuous revenue increases!
The company has a foundation unlike any alert we've brought our subscribers this year, but also look at the industry in which it competes!
China's economy continues to sustain double digits growth, and the growth of the Henan Province is outpacing the national average. With the extension of China's national highway network, the highway freight volume continues to grow.
Its speculated that there will be 10 more toll roads in Henan alone before year end, which will create over 700,000 jobs.
With China's population growing to almost 1.4 Billion this year, one can only assume the rate of commuters, and cars on the roads will grow as well. Compare that to the 300 Million in the U.S.!
Believe it or not, increased revenues of about 47% from 2007-2008, still puts CIIC in a position to achieve exponential growth. Its close competitor, Road King, was just shy of $600 Million in revenues for 2009.
Road King's operations consists of more than 20 toll roads and 2 bridges with 60 toll stations covering about 1,100 Kilometers on China's eastern coast.
If thats not impressive enough take a look at Jiangsu Expressway Company Limited. Jiangsu saw revenues close to $850 Million in 2009!
Jiangsu Expressway Company maintains and operates the eight-lane Shanghai-Nanjing Expressway and other related toll expressways in Jiangsu Province. The company also provides other road services along the expressway, including the management of bus services, fueling stations, traveler accommodations, restaurants, car maintenance repair shops, and advertising.
Sounds a lot like like CIIC to us!
We always stress how important a strong Management Team is to the success of a company, CIIC has a team 2nd to none and we believe this is why they are poised to see revenues at the same levels of their close competitors. Just take a look at some of their industry experts leading the way:
Chairman and CEO, Mr. Xipeng Li Mr. Li is also the Chairman and CEO of Henan Shengrun Investment Co., Ltd. Mr. Li has proven successful records in developing and managing infrastructure projects in China in the past 15 years. Mr. Li has a EMBA degree from Cheung Kong Graduate School of Business in China.
Director and CFO, Mr. Chunxian Zhang Mr. Zhang has served as Chief Financial Officer of Pinglin Expressway Co., Ltd. since May 2003. Prior to that, Mr. Zhang served as investment manager at Central China Trust and Investment Co., Ltd based in Henan province. Mr. Zhang is a Chinese Certified Public Accountant.
Director, Mr. Changlai Li Mr. Li has being the General Manager of Weilan Highway Investment Construction Co., Ltd. since 2004. Prior to that, Mr. Li served as Chief Engineer of Henan Highway Development Co., Ltd. from June 2002 through December 2004 and Manager of Zhumadian Expressway of Henan Highway Development Co., Ltd. October 2001 through June 2002. Mr. Li earned his Masters degree at Changan University in Xian, China.
Between fundamentals, industry, management team and the fact that CIIC saw a high of $4.75 just four short months ago, we feel that there are few companies out there with this much upside potential!
As always, we encourage our subscribers to conduct their own due diligence on CIIC, and to visit the company website at: http://www.ciicusa.com/en/
Keep CIIC on your radar screen for more news and activity on the stock!
Disclaimer PLEASE NOTE WELL: The employees of OxofWallstreet.com are not Registered as Investment Advisors in any jurisdiction whatsoever. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. Investing in "penny stocks" is highly speculative. Full disclaimer is available at OxofWallstreet.com. This message was sent by: The Ox of Wallstreet, 1225 19th Street, NW Suite 300, Washington, DC 20036
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