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China Auto Logistics (Nasdaq: CALI) $2.43, Up $1.27. Today announced it successfully closed the sale on July 1 of three million unregistered common shares to accredited individual investors at an above market price of $1.75 per share, raising a total of $5.25 million for general corporate purposes.
Mr. Tong Shiping, CEO and Chairman of the Company, noted that each of the investors, in agreeing to a long term purchase of CALI shares above their 20-day moving average price, "clearly appreciate the strength and growth potential of our Company which has been masked by the unprecedented current predicament of Chinese stocks in the U.S." Mr. Tong continued, "Based on very thorough due diligence, these investors reached the conclusion that our Company has and will continue to be very transparent while generating outstanding performance, and believe our shares are significantly undervalued mainly because of the prevailing negativity temporarily affecting all Chinese company shares in the U.S." He added, "They and we also strongly believe the growth in China will continue to set the pace for the rest of the world, particularly in selected industries, such as the auto industry. Auto growth is being fueled by the fact that fewer than 50 out of 1000 Chinese individuals own cars, despite the continuing high level of sales. We also anticipate the continuing rapid growth of Internet use in China, and believe our Company is very well positioned to capitalize on these converging trends."
Commenting further on the continuing growth in China's auto sales, Mr. Shiping stated, "The full year sales advance in 2010 above 32%, as I had said repeatedly, was unsustainable. Nevertheless, I believe we will continue to see very healthy, world leading double digit sales in 2011 and beyond, following year over year growth through the first five months this year of about 4.2%, nearly 7% growth in passenger car sales, and continuing double digit growth in luxury sales. Only recently, the Deputy Chief of the China Association of Automobile Manufacturers was quoted as saying that an anticipated drop in oil prices and increased liquidity will help boost second half sales, and executives in the industry were cited by a leading consultancy as believing growth of 12 to 15 percent annually is expected through 2016."
What They Do: China Auto Logistics has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China.
APAC Customer Services (Nasdaq: APAC) $8.43, Up $2.99. Today announced along with One Equity Partners that the private investment arm of JPMorgan Chase & Co, announced today that they have entered into a definitive merger agreement under which an affiliate of One Equity will acquire 100% of APAC, through an all-cash transaction with an aggregate equity value of approximately $470 million. APAC’s Board of Directors has unanimously approved the transaction.
Under the terms of the agreement, One Equity Partners will pay APAC stockholders $8.55 per share in cash, which represents a premium of approximately 57% over APAC’s closing share price on July 6, 2011, the last trading day prior to today’s announcement. The acquisition is anticipated to be funded through committed equity and credit facilities and is not subject to any financing contingencies.
What They Do: APAC Customer Services is a leading provider of quality customer care services and solutions to market leaders in healthcare, business services, communications, media & publishing, travel & entertainment, financial services and technology industries.
Birks & Mayors (NYSE: BMJ) $1.58, Up $0.32. Announced Wednesday after market close financial results for the fiscal year ended March 26, 2011 (“fiscal 2011”) as well as sales results for the thirteen weeks ended June 25, 2011 (“first quarter fiscal 2012”).
Net sales for fiscal 2011 increased 6.2%, or $15.9 million, to $270.9 million, as compared to $255.1 million for the fiscal year ended March 27, 2010 (“fiscal 2010”). The increase in net sales was primarily driven by a 2% increase in comparable store sales, representing $3.8 million of the increase, as well as the impact of $2.1 million of higher sales from two new stores net of lower sales related to the closing of six stores during the fiscal 2010. Also impacting the increase in sales in fiscal 2011 was $9.6 million of higher sales related to translating the sales of our Canadian operations into U.S. dollars due to the stronger Canadian dollar. The comparable stores sales increase of 2% reflects a 1% increase in comparable store sales in the U.S. and a 2% increase in comparable store sales in Canada. The increase in comparable store sales in both countries during fiscal 2011 was primarily related to an increase in the average sale transaction as demand for luxury retail products began to slowly increase in both Canada and the U.S.
Gross profit for fiscal 2011 was $116.1 million, or 42.8% of net sales, as compared to $104.5 million, or 41.0% of net sales, in fiscal 2010. The 180 basis point increase in gross profit margin was primarily attributable to reduced promotional pricing associated with the improving economic environment in both the U.S. and Canada.
What They Do: Birks & Mayors operates 61 luxury jewelry stores across Canada, Florida and Georgia,
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