Universal Travel Group (OTCBB: UTVG)
New York, N.Y.
http://www.chutg.com/

52-week low / high: $0.51 / $5.72
Shares Outstanding: 35.7 million
Market Capitalization: 96.7 million

Gone are the days when going on vacation meant the obligatory trip to visit your obnoxious in-laws in Hoboken. For the adventurous spirits traveling to, from, or in China, Universal Travel Group (OTCBB: UTVG) is the new kid on the tourism-industry block.

The small cap serves domestic and international business and leisure jetsetters by providing an array of travel services that include airline tickets, hotel and restaurant reservations, packaged tours and air cargo services. While Universal Travel has eight company-owned reservation office locations, 103 franchised locations and a call center facility, it is headquartered in New York City, after recently relocating from Los Angeles, Calif.

Through its November 2006 alliance with TravelSky, a leading provider of IT solutions for China's air travel and tourism industries, Universal Travel has secured access to more than 3,000 domestic and international hotel booking services. Couple that with the fact that the company has partnerships with British Airways, Virgin Atlantic, Air France, Swiss International Air Lines (formerly Swissair), Iberia (Spain's national airline), Cathay Pacific and others, and travel-savvy traders are left with destination: invest.

Universal Travel Group restated its financials on Dec. 3, 2007 for the third quarter ended Sept. 30, 2007. Restated revenues of Universal Travel Group for the period were $12.8 million compared to the $20.3 million previously reported. Significantly, gross profit and net income were not affected and remained $4.5 million and $3 million for the third quarter of 2007. As a result of the restatement, Universal Travel’s gross margin for the third quarter of 2007 was 35% compared to the 22% previously reported. Similarly, since net income for the third quarter remained as reported, net margin increased to 24% compared to the previously reported 15%.

For those uncertain about the long term, the China travel boom is deep rooted. Of all the reasons for the travel bull market, the forthcoming 2008 Beijing Olympics and 2010 World Expo in Shanghai are two high-profile events that will surely add a spark to the domestic and international travel business in the Middle Kingdom.
 
While the air travel market in China has seen exponential growth, increasing by three million air travelers per year since 1980, according to Martin Craigs, president of the industry lobby group Aerospace Forum Asia, by 2025, China's current 187 million flyers will swell to a mind-boggling 780 million. (Between now and 2010, China's online travel business is expected to surge at least 70% annually.)

Now may be the time to pack your bags and invest in Universal Travel. The outcome could provide a nice respite from hearing about your mother-in-law's ever-recurring bunions.

Note: Universal Travel Group (OTCBB: UTVG) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Universal Travel displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.