NEW YORK, NY / ACCESSWIRE / March 6, 2017 / SeeThruEquity, the leading independent equity research firm focused on small-cap and micro-cap public companies, today announced it has issued an update note on ChineseInvestors.com, Inc. (CIIX).
The report is available here: CIIX March 2017 Update Note.
ChineseInvestors.com, Inc. (CIIX) ("CIIX") is a relatively undiscovered specialized investment services company with several intriguing business lines high growth potential and a compelling valuation based on previous peak cycle earnings. With headquarters in Los Angeles, CA, CIIX offers a range of intriguing consulting services, information products, and web-based tools for investor education, including real time market commentary, analysis and education in Chinese language character sets. The company demonstrated impressive profit in 2014, and we believe the earnings power displayed at the top of the cycle is a fact largely overlooked on Wall Street. Recently, CIIX has made several announcements highlighting growth potential from its investments in the global cannabis industry, a new quickly growing market with large potential. These include the recent launch of what management called "world's first Cannabidiol (CBD) health products online store in the Chinese Language," as well as a Chinese language Yelp-style mobile application that will contain a location-enabled database of recreational and medical marijuana dispensaries, as well as a platform to review and discuss various cannabis products.
Highlights from the update are as follows:
Several catalysts ahead as CIIX gains cannabis exposure
In addition to value available from CIIX's core financial information and consulting services for Chinese-speaking investors in the U.S. and China, CIIX appears to have taken significant strides to increase its exposure to the burgeoning global cannabis industry. As we have noted throughout our coverage, CIIX was able to gain early exposure to the rise in cannabis stocks and evolving trend towards legalization with its stake in publicly traded Medicine Man Technologies, Inc. (OTCQB:MDCL). Medicine Man Technologies, provides consulting services related to cultivation, production, and dispensary operations to 19 clients in eleven US states and Puerto Rico, with a market capitalization of $28.3mn as of January 17, 2017. According to SEC filings, CIIX generated $2.3mn in proceeds from stock sales of Medicine Man during calendar 2016. We estimate that the company has nearly exited this position, and that any remaining shares have been held debt collateral. CIIX has addressed short term liquidity needs, however, with the issuance of $4.7mn in Series C Preferred Stock, as disclosed in its 10-Q filed on January 23, 2017.
CIIX launches first Cannabidiol (CBD) health products online store in the Chinese Language
In February, CIIX launched what it has described as the first cannabidoil (CBD) health products online store in the Chinese language. The web site, www.ChineseCBDoil.com, is intended to be a retail destination for nutritional supplements containing CBD to the Asian market through both online and in-store sales. The announcement follows CIIX's plan to launch a Chinese language Yelp-style mobile app for locating dispensaries and discussing cannabis products in the US, and a December announcement that it had entered into an alliance with Chinese private equity firm Shenzhen Yuanrong PE Capital seek out opportunities in medical and recreational cannabis.
Price target moves to $3.75
We are increasing our price target to $3.75 at this time, reflecting potential from the company's legal cannabis initiatives. CIIX remains in the early stages of penetrating this market, however, the increased market opportunity and CIIX's prior success in the cannabis industry with its investment in Medicine Man should support the view that it can capitalize on a unique approach to broad cannabis industry growth.
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About ChineseInvestors.com, Inc.
ChineseInvestors.com, Inc., (CIIX), headquartered in Los Angeles, with offices in New York City and Shanghai China, is a Company that engages in providing a wide range of products, services, and information for the global Chinese speaking population. Founded in 1999, CIIX endeavors to be an innovative company providing (a) real-time market commentary, analysis, and educational related services in Chinese language character sets (traditional and simplified); (b) support services to various partners; (c) consultative services to smaller private companies considering becoming a public company; (d) advertising and public relation related support services; and (e) other services we may identify having the potential to create value or partnership opportunity with our existing services. http://www.Chinesefn.com.
The Company is now beginning to change its focus of solely being a premier Internet information provider by expanding into retail and online sales of CBD products via its new website: http://www.ChineseCBDoil.com.
Information on CIIX can be found at http://www.ChineseInvestors.com.
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