It is not common to find Over-the-Counter (OTC) stock from California with four operating subsidiaries in China. A return of average equity in excess of 25% over the past four quarters makes this company even more interesting from a stock investment perspective. Deeper analysis leads to further reassurances about future stock value.
The company is involved in making air-conditioners for automobiles. It has separate operations for producing electronic components and for making and machining dies. Since China has been at the center of so many quality failures during 2007, it is interesting to know that the company has a separate subsidiary just for Quality Control.
The management strikes profitable balances between direct manufacturing and related technical services. It combines top opportunities in doing business under owned labels, contract production for industrial clients, management services, and outsourcing some of its own requirements to local suppliers. This gives the company a number of options to respond to the dynamic business environment in China. The company is a valuable bridge between the economics of deploying Chinese labor, the rapid growth of that economy, and the latest in professional production management. The stock is worthy of active consideration by all investors who want to participate in the China growth story under the eye of US stock trading regulations.
The recent management decision to branch in to alternative energy through the manufacture of photovoltaic cells, improves business prospects further. Energy is a large business space, and most suitable for the company’s established strengths.
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