Tag - CSR

Shares of China Security & Surveillance Technology, Inc. (NYSE:CSR) have been pummeled more than 30% since the start of June and such share disinterest has persisted in recent trading sessions. Short interest has jumped to 12 days of average trading volume.

Although the sell off, Susquehanna Financial analyst Adele Mao says shares have been unjustly punished, as investors have excessively focused on old topics and glossed over the company’s strong fundamentals.

“We view the rising needs for working capital as a byproduct of CSR's robust growth prospects, particularly given the company's involvement in Safe City projects of larger size and longer durations,” she wrote in a research note today. “The company's arrangements with China Construction Bank and IBM Global Financing are preferred alternatives to capital raise in a challenging market environment.”

Shares closed at $13.62 on Tuesday, down from $20.51 at the close of June 2. Shares have traded between $10.69 and $33.60 for the past 52 weeks. For detailed price information and recent news stories about China Security & Surveillance, click CSR.

CompuCredit Corp (Nasdaq:CCRT), CMGI Inc (Nasdaq:CMGI) and Wireless Ronin Technologies Inc (Nasdaq:RNIN) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Synchronoss Technologies Inc (Nasdaq:SNCR), China Security & Surveillance Technology Inc (Nasdaq:CSR), Intervest Bancshares Corp (Nasdaq:IBCA), Palm Inc (Nasdaq:PALM), DrdGold Ltd(Nasdaq:DROOY) and SunLink Health Systems Inc (Nasdaq:SSY).

Here are the biggest percentage losers among small caps:

Baron Philippe de Rothschild once said “the time to buy is when there’s blood in the Streets.” China is still in the early recovery stages of one of the most calamitous earthquakes to ever rock the mounting Asian empire, causing a broad-based pull back in Chinese shares, and uncorking investment opportunities from the rubble.

“It’s happened time and time again throughout history, whether it be the earthquake in China or the flooding in New Orleans or the World Trade center — there is generally a market consequence,” Jim Trippon, editor in chief of the China Stock Digest newsletter, said in an interview with SmallCapInvestor.com. Trippon runs the largest equity investment research firm in mainland China and advises corporate pensions, private trusts, and high-net-worth families on their China investment strategies. “Anytime that happens, at least for the short term, there’s a pull back in all stocks, which generally creates a tremendous buying opportunity if you can differentiate between the winners and the losers.”

Even though the earthquake has shaken the Sichuan Province, the region only comprises 4% of China’s GDP, meaning there is marginal downside from a macroeconomic standpoint.

As China rebuilds, commodities, companies that produce commodities and companies who are in some fashion tied to commodities will be a lucrative space for investors to park their cash on account of this earthquake. China’s torrid growth of 10% on average has been a major source behind the skyrocketing commodity prices as the country has sought to build infrastructure. The recent earthquake magnifies that effect. Any building materials — oil, steel, timber, aluminum, copper and cement — needed to reconstruct China will benefit. 

“What’s happening right now with the earthquake is that we’re seeing demand continue to go up because they’re rebuilding,” Trippon said. “What that means for us as investors is we can realistically expect further increases in commodity prices across the board.”

The drybulk shipping space is one that will benefit from the earthquake and . . .

Jim Trippon, editor in chief of the newsletter China Stock Digest, runs the largest equity investment research firm in mainland China and advises corporate pensions, private trusts, and high-net-worth families on their China investment strategies. Trippon spoke with SmallCapInvestor.com’s Jennifer Schonberger Tuesday, sharing his outlook on Chinese small caps and the Chinese economy.

Trippon, who returned to the United States from China earlier this week, is the author of  “Becoming your own China Stock Guru: The ultimate investors guide to profiting from China’s economic boom,” published by John Wiley & Sons, Inc. Part two of Trippon’s interview will appear on SmallCapInvestor.com on Monday.

“I would say there’re two trends that people need to focus on that became real clear on this last trip [to China]. One is that the economic growth is continuing at a breakneck pace. This industrial revolution in China is not a short-term thing. It’s a 30- to 40-year trend … and they have at least another 30 years to go before it’s all done.

“The second thing that struck me on this trip was how inflation is hitting China hard — much higher than what we typically see in the media in the United States. This is dramatically different than what I saw just three months ago because I go to China six months a year. [Everyone’s] cost of living is going up 10% to 15% a year. [Most businesses are] giving out major salary increases to make sure [people] don’t get hurt. The other side of that coin is that although [inflation is] a huge issue in China right now, it’s going to be a huge issue for us in the United States before we know it, not only because of the declining dollar, but because most of our consumer products today are made in China. 

“I would think they would increase interest rates, but there’s only so much the central government can do to control an economy — and we’re seeing this with our own economy. Once you let the free market take hold in a free economy — as ours has done for a long time and as theirs has done more recently — what happens, to a large extent, is going to be dictated by market factors . . .

Shares of China Security & Surveillance Technology, Inc. (NYSE: CSR) are in the red despite news after the close on Monday that the maker of digital spying technology increased its fourth-quarter revenue 106% to $84.17 million from $40.93 million a year earlier. The company also reported earnings of $0.38 per share, above the $0.36 per share projected by analysts.

At 3:33 p.m. ET, the stock was down $1.90, or 13%, to $13.05.

As a society becomes more open and prosperous, a heightened awareness for increased security is a natural outcome.

With dizzying growth, rapid industrialization and a sweeping transition to a free market economy, China is awash in cash and businesses are booming. Security and monitoring have become a high priority for corporate and government spending.

One standout in China's security market is China Security & Surveillance Tech. Inc. (NYSE: CSR), a player in the fast-growing security and surveillance systems segment. Based in Shenzhen, China Security has emerged as a domestic leader in a highly fragmented industry. The company manufactures, distributes, installs and maintains security and surveillance systems throughout the mainland, leveraging its extensive network of over 200 sales representatives and several dozen distributors.

Originally founded in 2001, the firm completed a reverse merger in late 2005, and then began a wave of buyouts in an agressive acquisition strategy. In 2006, the company acquired several security and surveillance businesses, including Shanghai Chengfeng Digital Technology Co. Ltd., Jian Golden An Ke Technology Co. Ltd., Shenyang Golden Digital Technology Co. Ltd., Shenzhen Golden Guangdian Technology Co. Ltd. and Jiangxi Golden Digital Technology Co. Ltd. In 2007, China Security acquired Changzhou Minking Electronics Co., Ltd. and Ocean Pacific Technology Limited, a holding company that controls Hangzhou Tsingvision Intelligence System Co. Ltd., a digital audio and video software developer.

Since snapping up competitors as part of its growth strategy, China Security has seen impressive growth, and the consolidations are expected to contribute to 50% of 2008 revenue. The integration of acquisitions along with organic growth fueled by a diverse customer base and contracts spawned from government initiatives to have surveillance systems installed in government buildings, public areas, traffic intersections and various private businesses paints a rosy future for China Security. (A recent study by Privacy International and the Electronic Privacy Information Center already pegs China as a major surveillance state, along with the United States, United Kingdom, Russia and others.)