NEW YORK, Aug. 3, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend affiliate Fundamental Research Corp. has initiated coverage on China Ventures Inc. (TSX Venture Exchange:CHV) at "Buy -- 4 (Speculative)" and placed a fair value of C$0.24 (current price: $0.15).
The following is a summary of the full 22-Page report, which is available free at www.fundamentalresearchcorp.com and at www.investrendresearch.com
The company is engaged in the distribution and development of educational and training materials in China. In 2004, the company announced two initiatives, the development of a kindergarten chain and a web-based education resources platform in China, to leverage on its existing expertise in the education sector.
Fundamental analyst Vicky Ng, MBA, CFA, thinks that these two new initiatives will directly benefit from rapid growth in the education sector in China. Factors likely to support the growth of the education sector include the government's emphasis on the development of high-quality school curriculums, and the propensity of Chinese parents to spend "substantial amounts of money on their children at an early age to prepare them to pass the university entry exam...." The report also cites the uniqueness of the company's web-based initiative, for example, government support and exclusive agreements, as a further growth opportunity.
The report 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 report including important disclosures, and further risk factors.
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A fee of less than $25,000 was paid by China Ventures to Fundamental Research to provide professional research coverage.
Complete information about this company is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes , and the full report is available at: http://www.fundamentalresearchcorp.com/PDF/chv0729initiating.pdf and www.investrendresearch.com , and investors are advised to read the disclosures and disclaimers carefully before trading in the equities of any enrolled company.
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