Sunday, August 23, 2009

Graduation Day: New Exchange Listings

A handful of stocks recently graduated from a bulletin board listing to an exchange listing, which theoretically should help the stock's liquidity. The added credibility can't hurt on the bullish scale either. Yet, they're still micro caps.... and fair game for our review.

This isn't all of them - just the highlights:

  • KIT digital, Inc. (KITD): KIT offers on-demand software IP-based (digital) video. And, apparently they do it pretty well.... the recent 10Q showed a 9% increase in revenue between Q1 and Q2, and a 91% increase from Q2 a year earlier. KIT swing to a GAAP loss in the second quarter, but on an EBITDA/operating basis posted a 239% increase in earnings. The recent alliance with Akamai makes this one worth watching.
  • China Marine Food Group Limited (CMFO): If you like value, you'll love China Marine Food Group. The P/E is a mere 9.8, which is low even by processed food standards. Boring can be beautiful too. (Side note: The company's food selections include roasted squid, roasted file fish, roasted prawns, shredded roasted squid, and smoked eel. Mmmmm, yummy.....j.k.)
  • SinoHub, Inc (SIHI): Sinohub is another value-seekers dream, with a twelve-month P/E of 8.0, and a forward-looking price/earnings multiple of 6.2. Margins are decent as well for this electronics wholesaler. Q2's revenue grew by 137%, and earnings were up nearly 500%. The company's proprietary supply-chain software is the key to its success.

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