Chinese Companies Traded On US Stock Exchanges Provide Deep Value For Investors According To First Wilshire Securities

• On 9:03 am EST, Thursday November 5, 2009

67 WALL STREET, New York - November 5, 2009 - The Wall Street Transcript has just published its TWST Small Cap Value Report offering a timely review of the sector to serious investors and industry executives. This 47 page feature contains expert industry commentary through in-depth interviews with award winning Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Small-Cap Value - Capital Preservation - Sovereign Bonds - Precious Metals - Value-Investing - Companies with International Exposure - US-listed Chinese Companies - Risk Limitation - Industry-Diversified Portfolios - Long-Term Value - Micro-Cap Companies - Turnaround Situations - Strategic Buying - Fundamental Analysis

Companies include: Bridgepoint Education (BPI); Compass Minerals (CMP); Flexsteel (FLXS); Hardinge Corp (HDNG); Phillips-Van Heusen (PVH); Adobe (ADB); Affiliated Computer Services (ACS); Alliance Data Systems (ADS); American Water Works (AWK); Atlantic Tele-Network (ATNI); Celanese Chemical (CE); CenturyTel (CTL); Clean Energy Fuels (CLNE); Consolidated Graphics (CGX); Dell (DELL); Dillard's Department Stores (DDS); Drew Industries (DW); Educational Development Corporation (EDUC); First Acceptance Corp (FAC); Forestar Group (FOR); Fresh Del Monte (FDP); Hain Celestial (HAIN); Harbin Electric (HRBN); Huron Consulting (HURN); IMAX (IMAX); IMS Health (RX); Kennametal (KMT); Lamar Advertising (LAMR); NBTY (NTY); Nature's Sunshine Products (NATR); Nobility Homes (NOBH); Omniture, Inc. (OMTR); Perot Systems (PER); Pfizer (PFE); SPDR Barclays Capital International Treasury Bond Fund (BWX); SPDR Gold Trust (GLD); Silver Wheaton (SLW); Tellabs (TLAB); Temple-Inland (TIN); Tempur-Pedic (TPX); Tesoro (TSO); Valero (VLO); Verizon Wireless (VZ); Whole Foods (WFMI); Xerox (XRX).

In the following brief excerpt from just one of the in depth interviews in the 47 page report, top tier money managers discuss their stock picks.

FRED ASTMAN is Chairman and a Portfolio Manager at First Wilshire Securities Management, Inc. Mr. Astman served in the Air Force as navigator of both B-24s and B-26s in World War II and the Korean War. He earned a BA from the University of Connecticut and has been investing in the small cap sector since 1962.SCOTT HOOD serves as President of First Wilshire Securities Management, Inc., and co-manages the portfolios. He has over 15 years of experience in the securities industry and has worked as an Analyst and Portfolio Manager at First Wilshire for 12 years. Mr. Hood also worked as a Supervisory Analyst with Merrill Lynch in Hong Kong and with a merchant/investment banking firm in New York City. He received his Bachelor of Science degree in Economics from New York University. He is a Chartered Financial Analyst and a member of the CFA Institute.

TWST: If one of you would, for the sake of our new readers, please give an overview of First Wilshire Securities and your investment philosophy there.

Mr. Astman: One area that we've paid more attention to over the last ten years has been the U.S.-listed Chinese companies, which have been very rewarding on a performance basis. Scott spent a couple years in Hong Kong a decade ago and has maintained his familiarity with Asia ever since. We have an analyst in China right now that is constantly on the watch in the areas that we're invested in, as well as looking for new investments. Most of our Chinese stocks listed in the U.S. are 10 P/E and under, and China has been a great place to find companies that meet our value criteria. There are not as many American companies at 10 P/E and under, which is the kind of valuation we like. Growth level is very high with these companies and stocks can move fast when the growth potential is recognized. There's one Chinese company that raised money six months ago at $1.54 and today it hit $10. You don't get that kind of growth in the U.S. issues. That's 500% plus in six months. We are still holding it because the company should have 50% growth in the next three years and the stock is trading at 10 P/E.

TWST: When we talked to you a year ago, the Chinese market was down just like the US market was down. Can you take us back 12 months and tell us how your portfolio fared during this turmoil in the markets?

Mr. Astman: The Standard & Poor's and the Dow Jones are up about 50% from the bottom. I think as of September 30 we were up 90% from the bottom.

Mr. Hood: I believe our downside was similar to these indices, which was nice since small caps tend to drop in sharp selloffs. We've just had more oomph coming out of it. The China stocks listed in the U. S. moved down right in line with those listed in China despite having significantly lower valuations. They have recovered faster since the China economy has done relatively well through the downturn and they started at much lower valuations.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 47 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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