Research Reports

China ACM (OTC-BB : CADC) - Research Report by Harbinger Research

IIP Webmaster — Mon, 02 Nov 2009 17:42:26 GMT

China ACM is a dynamic, rapidly-growing concrete company in the world's largest nation and fastest developing major economy. The Company has a sound growth strategy, defensible technological advantages, deep industry and government relationships, and a seven year track record of success. Candidly, we believe significant upside to our estimates and price target exist, and given the relatively low risks inherent in China ACM's operations and industry, we rate the shares a Strong Buy, with a 12-month price target of $12.60 per share. We believe CADC shares represent an excellent investment opportunity for any and all investors who can tolerate the risks of investing in Chinese companies and who understand and can tolerate typical small-cap volatility. Overall, we believe CADC shares represent one of the best opportunities in our coverage universe.

NF Energy Saving (OTC-BB:NFEC) Post Reverse-Split Report Reissuance by Harbinger Research

IIP Webmaster — Wed, 16 Sep 2009 15:10:33 GMT

NFEC is an already-proven industrial company that exhibits the growth characteristics of a young, high-growth enterprise, and it has recently announced a break-out quarter. Furthermore, the Company is in the sweet-spot of global energy price/supply trends and the pervasive push for more efficient energy use. The Company is well managed, well-funded, and strategically located near China’s iron belt, giving it below-market price for its raw materials inputs. Given its low trailing price-to-earnings multiple, we are comfortable that NFEC shares are worth considerably more than US$5.25, even if 2009 and 2010 do not exceed our estimates as we now hope they will. Therefore, we rate the shares of NF Energy Savings a Strong Buy, and set our 12-month price target at $8.64 per share, with significant upside to this target during the second half of 2009.

NF Energy Saving (OTC-BB:NFES) Research Report by Catalyst Financial

IIP Webmaster — Thu, 27 Aug 2009 21:09:03 GMT

NFES management executed a strong growth plan the past three years, as revenue nearly tripled from $5.3 million in 2006 to $15.8 in 2008 (+72.7% CAGR), driven largely by strong sales of innovative flow-control products. Management intends to continue focusing on significant opportunities in these areas, while augmenting this growth with new product entries targeting the rapidly growing wind power markets. The Company has successfully field tested several of its turbine components with prospective customers and is in active discussions regarding production orders.

We are forecasting 2009 sales of $27.7 million and EPS of $0.16 for NFES; for 2010 we expect sales of $40 million and $0.25 EPS, based on expected shipments of existing orders and anticipated order rates for future projects. Better margin wind components are expected to substantially increase the revenue growth trajectory in 2010 with completion of the new automated production facility.

Based on these factors, we are establishing a price target of $2.50, or 10x our 2010 EPS estimate of $0.25 and 2.5x revs/share estimate.

Universal Travel Group (UTA - NYSE/Amex) Institutional Research Brief by Harbinger Research

IIP Webmaster — Mon, 06 Jul 2009 18:20:08 GMT

STRONG FINANCIAL PERFORMANCE CONTINUES: Core businesses growing at over 20% CAGR, with no LT debt and almost $20M in cash. Kiosk program in full swing.

We believe the Company is continuing to execute well while also making good strategic decisions, such as the divestiture of its air shipping business. This strategic move has left the Company completely focused on air ticketing, travel and hotel reservations, and travel package sales, all of which are strategically consistent. The Company has also shown solid organic growth in each of its businesses, as evidenced by revenues and earnings, its recent move into another region of China, and its accelerating kiosk rollout.

Company Overview

Universal Travel Group trades on the American Stock Exchange (AMEX) under the symbol UTA. Based in Shenzhen, China, the company’s operates three primary lines of business: air ticketing, tours and packaged travel, and hotel reservations; it recently divested its air cargo business, which was shrinking and had relatively low margins. Although the Company has historically had overall gross margins in the 33% range, we expect an improvement to the 36% - 37% range based on the shipping business divestiture. Air Ticketing is rapidly growing and has almost 95% gross margins, so we could continue to see gross margin improvement in the coming quarters. Given the Company’s relatively stable operating expense base, we also believe that there is significant operating leverage in the business, which should lead to ever-improving net margins as the Company continues to grow sales.

Since making its key business acquisitions in 2007 and 2008, the company has developed an integrated offering for Chinese and foreign travelers, that includes a fully-featured Web-based system and a recently-introduced Kiosk system that the Company is aggressively rolling out (now 150 locations). This offering’s popularity1 has been driving the exceptional growth in the Company’s highest margin businesses, and we expect the large-scale rollout of its well-received Kiosk system to extend this trend. The Company plans to have between 600 and 1,000 kiosks in operation by the end of this year.

The Company also boasts a seasoned management team that has demonstrated the ability to grow the business while controlling costs, and to successfully acquire and integrate several related enterprises.

Universal Travel Group (UTA - NYSE/Amex) Research Report by Emissary Capital

IIP Webmaster — Mon, 06 Jul 2009 18:01:58 GMT

Fair value of $16. ECG is initiating research coverage on shares of Universal Travel Group (UTG) with a Buy rating and target price of $16, which assumes a potential ROI of 40%. On the heels of a 50% rally following the effectiveness of a 3 for 1 reverse stock split (as of March 31, 2009), our target price assumes that the shares can continue to trade up to a P/E of12x and10x conservatively projected 2009/2010 EPS of $1.22 and $1.53, respectively, though the recent run up suggests that the opportunity may be more suitable for investors with a 12-month time horizon and thus a tolerance for speculative risk. Our positive view remains reasonable based on our firm conviction that UTG’s business can sustainably operate at a 3-year revenue and earnings CAGR of 25% - versus its uninterrupted historical CAGR north of 40% - which would imply the shares are currently trading at a compelling valuation level based on PEG (0.4x), relative (30-40% discount to U.S.-listed peers on all metrics), and DCF valuation bases.

Near-term projections (2Q09, 3Q09, 4Q09) are based on positive macro/industry and micro trends, but minimally on new brand building and business initiatives such as the rollout of the company’s capex-intensive TRIPEASY kiosk concept, which has the makings of serving as a significant top and bottom-line growth accelerator and catalyst for the stock over a 6 to 12-month period. Recently, the company also received approval for a NYSE/Amex listing, which we anticipate will continue to create a wider secondary market for the shares.

In addition, business and leisure travel within China appears to be stabilizing, with the government stimuli and 50%+ run ups in the mainland composites clearly aiding sentiment. To its credit, we believe UTG, over the past twelve months, has endured extensive discounting by airlines and hotels as a result of its well-diversified and improving revenue mix as reflected by gross margin improvements into the mid to high 30% range. Looking forward, profitability levels should be supported by potential for upside pricing surprises, further government initiatives to promote domestic consumption either through subsidies or tax incentives, the likelihood of steady commission rates on air and hotel bookings, and the ability for the company to offset declines in revenue per air ticket or hotel room with volume growth and cost controls.

SilverCrest Mines, Inc. (TSXV - SVL) - –Updated Resource Estimate for Santa Elena Project

IIP Webmaster — Thu, 02 Apr 2009 20:56:13 GMT

Investment Analysis for Intelligent Investors from Fundamental Research Corp.

SilverCrest holds three silver-gold properties in Sonora, Mexico and one in Santa Ana, El Salvador.

A recently updated mineral resource estimate on the Santa Elena project in Mexico, increased indicated gold and silver resources by 150% and 173% respectively. Updated NI 41-101 resource estimates are: 339,600 oz gold, 11.93 million oz silver probable; 190,600 oz gold, 11.82 million oz silver indicated and; 116,235 oz gold, 7.98 million oz silver inferred.

Environmental Impact Assessment has been approved granting the right to develop and operate the Santa Elena mine.

The company intends to develop the Santa Elena mine as an open pit, heap leach operation, with potential to go underground.

In a best case scenario, and management’s plan, construction of the heap leach pads and tailings ponds will be completed prior to the summer rainy season and initial production will begin before the end of 2009.

Considering its current cash position, we believe, the company has to raise about US$17 - US$18 million in the next 3 to 4 months in order to commence production by the end of 2009.

Increased resource estimates led to an increase in our DCF valuation. However, comparables valuation dropped as the average EV/Resource ratio of its peers dropped from $2.08 to $1.16 per oz.

Based on our revised valuation models, and review of the company’s progress since our previous report, we reiterate our BUY rating, and maintain our fair value at $1.98. Although the comparables valuation has dropped, the DCF value has increased which shows that the company is progressing its projects in the right direction while the market continues to be volatile.

Universal Travel Group Inc. (UTVG - OTC:BB) Research Report

IIP Webmaster — Thu, 02 Apr 2009 20:50:27 GMT

Dutton Associates Independent Research

We are initiating coverage on Universal Travel Group (Universal Travel) with a Strong Speculative Buy rating and a 12- month target price of $3.36 per share.

Universal Travel is a travel services provider in the People’s Republic of China and is principally engaged in the provisions of air-ticket and hotel reservations, domestic and international travel and tourism services throughout China via the Internet and through customer representatives. Under the theme: “Wings Towards a More Colorful Life”, the Company’s services include tour-packaging, booking, services for air tickets and hotels as well as air cargo agency. The Company’s vision is to become the foremost leading online travel services provider in all fields of the tourism industry, including the aviation service, cargo agency, hotel booking and tour packaging segments in the People’s Republic of China.

Universal Travel Group (UTVG - OTC:BB) Research Report

IIP Webmaster — Thu, 02 Apr 2009 20:46:33 GMT

Independent Investment Analysis by Harbinger Research

Universal Travel Group is an integrated travel company operating in the People’s Republic of China. The Company operates ticketing, hotel reservation, packaged travel, and air cargo businesses. The Company serves its customers with advanced Web and Kiosk systems and is an industry leader in its local market.

China Energy Recovery (CGYV - OTC:BB) Research Report

IIP Webmaster — Thu, 02 Apr 2009 20:44:34 GMT

Independent Investment Analysis by Harbinger Research

China Energy Recovery creates custom systems that reclaim waste heat from industrial and electricity generation processes. These systems remove harmful waste products from exhaust gasses while also recycling as steam energy up to 2/3 of the heat typically lost as exhaust. The Company is based in China and is currently benefitting from the new “environment-friendly” set of policies recently instituted by the Chinese government.

Magnitude Information System (MAGY - OTB:BB) Research Report

IIP Webmaster — Thu, 02 Apr 2009 20:41:12 GMT

Independent Investment Analysis by Harbinger Research

Magnitude Information System: The Company’s Kiwibox.com site boasts an escalating membership of teens and is in the midst of a rapid new user adoption cycle. Kiwibox provides teenagers with teen-focused content, social networking, and a variety of games, music, and other “sticky” features. Kiwibox.com is emerging as the top teenfocused destination on the Web, and is accessible from a traditional Web browser as well as a Web-enabled mobile phone.