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Thursday, October 22, 2020

ChineseInvestors.com Inc (OTCMKTS:CIIX) Pulls Back in Red Hot Trend

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ChineseInvestors.com Inc (OTCMKTS:CIIX) has been one of the more recent eruptions to attach itself to the cannabis theme in 2017. Shares blasted off in concert with a whole lot of promotional attention and a series of press releases highlighting the transition. In all, the move has taken CIIX stock up by as much as 400% since it took flight in late December. But this isn’t just a lot of pumping at work. The company has raked in $1.3M on the top line over the past year, with quarterly y/y growth at over 75%, which is something to justifiably boast about. That growth data has paired up with a very small trading float (less than 7M shares) and blaring press coverage of the pivot into the cannabis-related niche to generate a lot of attention toward the stock.

The most recent company press has focused on their new subsidiary’s website ChineseCBDoil.com. According to the company, they plan to retail hemp oil and related products on the site, which are legal to sell and distribute within China and in the United States in all fifty states (hemp oil is not marijuana, but indeed a separate and distinct plant made from hemp). “CBD oil, derived from hemp is a product with medicinal qualities that are primarily used for anti-inflammatory and other common ailments. Its website is intended for the Chinese-speaking population, a global market of 2 Billion people.”

ChineseInvestors.com Inc (OTCMKTS:CIIX) frames itself as a company that provides Web-based real-time financial information in Chinese language for the Chinese population in the United States and internationally.

The company offers various subscription services, including information about the US-listed companies; real-time analysis and tracking of the US stock market quotations; trend analysis of the market and individual sectors; and access to a sample investment portfolio for educational simulation relative to individual stock research, as well as real-time trading demonstrations of various trading techniques. Its subscription services also provide access to other services, including Market Hotspot Report, a report that provides current and historical performance information on active issues, as well as sectors in the US Marketplace; Intraday Market Analysis, an after close report; weekly market commentary; etc.

In addition, the company offers educational demonstrations to its subscribers on how to evaluate various investments through fundamental and technical analysis; education materials; option investment and trading subscription services; Dark Horse subscription services that focus on the US-listed small-cap stocks; and Website based advertising services.

Further, it provides free stock and research tools, as well as investor awareness and general corporate support services. The company offers its services through its Websites, as well as through customer support personnel at its telemarketing and customer service center. ChineseInvestors.com, Inc. was founded in 1999 and is based in Denver, Colorado.

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According to company materials, “ChineseInvestors.com, Inc. (‘CIIX’), founded in 1999 endeavors to be an innovative company; providing (a) real-time market commentary, analysis, and educational related services in Chinese language character sets (traditional and simplified), (b) support services to our various partners, (c) consultative services to smaller private companies considering becoming a public company, (d) advertising and public relation related support services, and (e) other services we may identify having the potential to create value or partnership opportunity with our existing services.”

Mr. Warren Wang, the Chairman of ChineseInvestors.com stated: “I am very pleased to see the investor reaction to our announced plans which we began to disclose over a month ago. Indeed the market has responded with very strong interest in our shares, and as a result we have achieved record trading volume and reached a new fifty-two week high in our shares last week.

Traders will note a bit less than 150% piled on for shareholders of the company during the trailing month. Moreover, the name has seen interest climb, with an increase in recent trading volume of approaching 580% above the average volume levels in play in this stock over the longer term.

It pays to take note of this fact with CIIX stock trading on a float that is tiny at just 6.6M shares. This type of thing is something to watch out for: a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.

Earning a current market cap value of $12.9M, CIIX has a stash ($647K) of cash on the books, which stands against about $1.1M in total current liabilities. One should also note that debt has been growing over recent quarters.

As noted above, CIIX is pulling in trailing 12-month revenues of $1.3M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 76.6%. The move may have run too far too fast, but the fuel for the fire here is not quite as empty as we occasionally see in something that looks this dramatic on the chart. We will update this one again as new information comes into view. For continuing coverage on shares of CIIX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

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