ChineseInvestors.com, Inc. (OTCQB: CIIX) is a very unique company. They are one of few publicly traded U.S. companies that allows investors direct access to Chinese growth. The company owns both Chinesefn.com and ChineseInvestors.com, which are financial portals for Chinese investors to gain insight on investment opportunities in the U.S. and Canadian stock and options markets. Their financial portals are different than any others, because they place a heavy emphasis on providing educational material on technical analysis. They offer paid subscription services as well as educational CDs and DVDs. In addition to these services, the company generates revenue through advertisements on their webpage.
It is difficult for American investors to gain direct access to investments in Chinese growth. There are less direct investment options, but they're generally padded or questionable at best. ChineseInvestors.com, Inc. is based in the U.S., and is strictly held to U.S. market regulations and the recently tightened reporting requirements on the QB tier of the OTC Markets. One of the greatest difficulties in Chinese investments so far has been fraud. Without strict regulation in Chinese companies, it is very easy for them to hide risk or misrepresent their material information. This sets ChineseInvestors.com, Inc. apart from the less trustworthy markets that investors have long feared in China. The U.S. has much stricter regulation in place, and ChineseInvestors.com, Inc. is forced to adhere to that regulation.
The company has seen tremendous fundamental growth in the past year, with LTM sales up to $4M, which was an increase of 131%. The company also has 30% EBITDA margins, which have continued to improve with time as well. This is largely thanks to a recent influx in Chinese investors entering U.S. equity markets. In the week ending December 12th, 2014 alone, over 900,000 new Chinese brokerage accounts were opened. With Chinese real estate markets coming back down to earth, many Chinese investors are seeking out new opportunities in U.S. equities. This is increasing the audience, and therefore revenue potential, of ChineseInvestors.com, Inc.'s web portals.
