02.17.10 TimelessWealth.net launches investing outlook: China INSOnline Corp. (NASDAQ: CHIO).
In recent weeks, the decline in the U.S. equity markets has inspired pessimists, while revealing attractive investment opportunities. The widespread of uncertainty and fear has allowed for strong, growth companies to trade at a significant discount to fair market value. “Buy Fear, Sell Greed”, billionaire Warren Buffett once said.
Timeless Wealth Staff believe China INSOnline Corp. (NASDAQ: CHIO) trades at a substantial discount to fair value. The concept is that when the market adjusts to fair value, investors who bought into weakness will be rewarded with a high return-on-investment (ROI).
China INSOnline Corp. (NASDAQ: CHIO) reported their net income for the second quarter of fiscal 2010 jumped 33% to $1.16M. Ever wondered what a value investor looks for in the market? Bottom line growth. Growth in income is often accompanied by growth in price per share. The market adjusts to the company’s growth by adjusting the share price higher. In turn, shareholders are rewarded.
To complement our intrinsic analysis of China INSOnline Corp. (NASDAQ: CHIO), we offer technical analysis in the form of an annotated chart (below)
China INSOnline’s book value per common share jumped emphatically to $0.61/share, attributed to 23% growth in the company’s total assets, when compared to the prior quarter.
Modest growth (3%) in revenues and superior margin growth during the quarter are credited with producing a greater bottom line. "[…] An array of high margin services to the insurance industry in China consistently delivers profits to our shareholders. We will continue to focus on high margin opportunities with our online platform and continue focus on creating greater shareholder value going forward," commented Ms. Betty Xu, the company’s CEO.
Earning $0.11/share, or $4.29 M in the six-month period ended December 31st, 2009, the company’s twelve month trailing Earnings-Per-Share (EPS) totals $0.25. Where the price-to-earnings (P/E) ratio is among the most common and reliable measures of value, China INSOnline Corp. (NASDAQ: CHIO) measures undervalued. Given the recent market price, China INSOnline Corp. trades with a P/E ratio less than 2.5. If value investors are willing to pay for bargains at these prices, they are likely to find China INSOnline Corp. attractive at twice the current market price. For every other investor that could mean a large ROI.
China INSOnline Corp. (NASDAQ: CHIO) is among very few strong, growing, profitable and undervalued micro-cap listed companies. If ‘value’ has any shape or form, China INSOnline Corp. is a great example of just that. Investors should be inquisitive but seek value when the markets present potential opportunity at a discount. Timeless Wealth Staff strongly encourage investors to review the opportunity present with an investment in the undervalued China INSOnline Corp. (NASDAQ: CHIO).
Sincerely,
Edward Stevenson.
Timeless Wealth Staff.
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