NEW YORK, Sept. 16, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend Research affiliate Fundamental Research analyst Vicky Ng, CFA, has reiterated China Ventures Inc. (TSX Venture Exchange:CHV) as a "Buy" and maintained a fair value estimate of C$ 0.24 in an Institutional update.
According to Ng, "The Company reported encouraging results with continued growth in revenues and improvement in margins through cost control. For the quarter ended June 04, Revenue rose by 69% from the same period last year, while Net losses declined by 33%. Gross margin also improved from 46 to 52 % over the same period last year."
Ng goes on to state "We believe CVI's two new business ventures, the educational platform and the kindergarten chain, will start to contribute to its bottom line in the next two years. Judging from the most recent period's results, we believe CVI is well on its way to achieving profitability in 2005."
Ng also mentions that "The Company's new Internet platform initiative has reported positive results from preliminary testing. As the company's new online platform initiative is expected to be one of the company's major opportunities for growth, it was encouraging to see the company report positive results from preliminary tests of the platform. According to CVI, the platform has received over 200,000 hits in the past four months. There are currently 5,000 articles on the site and 70% of downloads so far have been practice exams."
Ng cautions that "The Company is still in the early stages of development of its new initiatives. Other risks may include: country, currency, external financing, and seasonality risks." Investors are advised to read the complete update and initiating report (July 29, 2004) including important disclosures and disclaimers.
The full report, including important disclosures and disclaimers, is available at http://www.investrendresearch.com, and http://www.fundamentalresearchcorp.com/PDF/chvq22004.pdf and at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium which sets the standards and ethics for independent research agreed to by all members of the association.
A fee of less than $25,000 was paid to Fundamental Research by China Ventures Inc. to provide professional research coverage.
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