Market Advisors, Inc. Issues "Initiating Coverage" Report on Dragon Capital Group With a Speculative Buy and a Price Objective o
August 26 2009 - 7:00AM
Marketwired
A new research report has been issued regarding Dragon Capital
Group Corporation (PINKSHEETS: DRGV) by Market Advisors, Inc.
"Fundamental Analysis for Today's Investments" with a "Speculative
Buy" and a $0.047 intermediate price objective. To view the report,
please visit www.dragoncapital.us, a leading holding company of
emerging high-tech companies in China.
Dragon Capital Group's (PINKSHEETS: DRGV) mission is to be a
leader in the development of wireless 3G-based applications and
business solutions. Two companies that Dragon has acquired are
among the leading providers of mobile Internet applications and
business solutions in China.
NEWS FLASH
On June 30, 2009, total assets were $14.6 million compared to
$15.9 million at December 31, 2008. In addition, 2009, shareholder
equity was $7.1 million and total current assets were $14.3 million
with working capital of approximately $7.8 million. Revenue for the
first six months of 2009 reached $26.9 million, increasing by 20%
from the $22.3 million recorded in the first six months of 2008.
Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon
continues to post increasing sales in this challenging
environment."
INITIATING COVERAGE
The Company offers consulting services for US enterprises
seeking to invest in China. DRGV directs clients' management of
investments in the Shenzhen and Shanghai stock markets Diversified
across product categories, end markets, and geographic regions
primarily in China. The Company has on board experienced
professionals knowledgeable with both the laws and business
practices of China. The Company has emerged as a profitable company
in a difficult environment and improved in almost all balance sheet
items including growing their cash position by approximately 12%.
China has encouraged growth in many sectors -- an abrupt change
from state control.
WHY CHINA
The Chinese government has relaxed laws and is allowing the
formation of rural enterprises and private businesses,
significantly opened foreign trade and investment, pulled back on
state control over commodity prices, and invested in industrial
production. They have also taken positive steps on educating its
work force. Because of this, it is hard not to be bullish on
China.
China has a vast populace and its large physical size alone
marks it as a very powerful global force. Since encouraging the
growth of rural enterprises and not focusing exclusively on the
urban industrial sector, China has successfully moved millions of
workers off farms and into factories without creating an urban
crisis. In addition, China has allowed more outside intervention
which in turn has spurred foreign investment. As a result, more
jobs have been created linking China with world markets.
UPDATE
The Company was founded in 2000 and is led by Mr. Lawrence Wang,
who serves as Chairman, CEO and General Manager of Shanghai Yazheng
and has been its General Manager since their inception. Mr. Wang's
goal is to lead DRGV in the high-growth potential in the universe
of Chinese stocks publicly-traded in global stock markets. Analysts
agree that over the next twenty to thirty years, it should be a
golden period for a rising China. As China's influence of the world
markets grows over time, many great investment opportunities will
continue to emerge. We currently feel stocks like DRGV and similar
stocks in related sectors are more promising than others. Current
steps taken by the Chinese government to stimulate the economy will
be a boom for many technology stocks. As a result, the sectors with
the best potential will be those that stand to benefit from the
rising middle class and its increased spending on transportation,
food services, and especially consumer electronics, which is right
where DRGV is positioned. Most financial professionals will
recommend between 10-20% of a portfolio to be placed into
international securities. Chinese stocks have been a popular
securities selection for investment portfolios in recent years as
their economy has been rising steadily. In fact, China has been
posting double digit growth numbers for several years, and of
particular interest, over the past couple of years when many other
countries have faced economic problems.
KEY POINTS
While investing in stocks always has its risks, just like the
US, China also has regulatory bodies in place designed to protect
investors. These regulatory bodies monitor which companies are
listed on the exchanges; audits are implemented with regularity,
and buying and selling of securities are closely regulated.
Regardless, any financial decision still needs to be carefully
evaluated and should match the investment style and risk tolerance
of the investor.
SUBSIDIARIES
Our positive outlook on Dragon Capital reflects our confidence
in a management team focused on growth through acquisition and
subsequent exploitation of capital-starved subsidiaries. Management
has successfully employed this strategy over the past few years in
both strong and weak markets. Current subsidiaries include:
Shanghai Yazheng Information Technology Co., Ltd engaged in
developing information technology in China by introducing advanced
software and hardware products from the US. Shanghai Cnnest
Technology Co., Ltd which is dedicated to commercial Third
Generation (3G) wireless applications and mobile business
solutions. In addition, Dragon also operates Shanghai Zhaoli
Technology Co., Ltd, Shanghai Longri Technology Development Co.,
Ltd and Shanghai Hulce Electronic System Integration Co. Ltd.
Please visit www.dragoncapital.us for additional details on these
entities.
About Market Advisors, Inc.
Officers of Market Advisors, Inc. have been in business since
1983 and have provided stock market research for their clients
since 1985. Company officials have often been quoted in a wide
array of financial publications such as the Wall Street Journal,
Investor's Business Daily, Barron's, Forbes Magazine and The Dick
Davis Digest to name a few.
About Dragon Capital Group Corporation
Dragon Capital Group Corporation (PINKSHEETS: DRGV) is a holding
company serving as a business incubator for emerging Chinese
businesses. Dragon currently controls subsidiaries operating in
high-tech, IT products and services and management consulting.
Three of the subsidiaries are growing strong recurring revenue
streams from electronics hardware distribution and network
integration. Dragon's wholly owned management firm, Shanghai
Dragon, is expected to realize its initial revenue and profits in
2007. The company's other three subsidiaries, still in the emergent
stage, are focused on wireless Internet applications, mobile
business solutions, software development, enterprise management,
computerized automations systems integration and network
integration. For more information, visit, www.dragoncapital.us.
Safe Harbor Statement
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations
or beliefs, including, but not limited to, statements concerning
the company's operations, financial performance and, condition. For
this purpose, statements that are not statements of historical fact
may be deemed to be forward-looking statements. The company
cautions that these statements by their nature involve risks and
uncertainties, and actual results may differ materially depending
on a variety of important factors, including, but not limited to,
the impact of competitive products, pricing and new technology;
changes in consumer preferences and tastes; and effectiveness of
marketing; changes in laws and regulations; fluctuations in costs
of production, and other factors as those discussed in the
company's reports filed with the Securities and Exchange Commission
from time to time. In addition, the company disclaims any
obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof.
Contact: Dragon Capital Group - Investor Relations Gary Liu
954-363-7333 ext. 318
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