SeeThruEquity Issues Update on ChineseInvestors.com, Inc. (OTCQB: CIIX)

NEW YORK, NY / ACCESSWIRE / October 13, 2016 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on ChineseInvestors.com, Inc. (OTCQB: CIIX).

The report is available here: CIIX Update Note.

ChineseInvestors.com, Inc. (OTCQB: CIIX, “CIIX”) is a relatively undiscovered specialized investment services company with several intriguing business lines high earnings power and a compelling valuation. With headquarters in Los Angeles, CA, the company 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 in 2014 is a fact largely overlooked on Wall Street. There are several potential catalysts ahead for the company, including growing its brand and breadth of financial service products, an improving outlook for its subscription business, and a new focus for cash generation in its portfolio of consulting client. Importantly, a key potential catalyst is from the recent public listing of core investment holding Medicine Man Technologies, Inc. (OTCQB: MDCL), a cannabis branding and consulting company that boasts 24 clients and a market capitalization of $17.8mn as of October 10, 2016.

Highlights from the update are as follows:

Subscription demand improves in “record” January

CIIX recently announced that it had begun 2016 with the “record” monthly subscription revenues in January. We see this as a strong start to the year for CIIX despite a challenging market environment for investors – particularly those with exposure to China. FY16 results have been largely disappointing due to a slowdown in investor relations and subscriptions revenues. It is important to recognize that, in addition to the clear headwinds the company is facing due to global financial market conditions, CIIX’s year-ago results include a large contribution from investor relations revenues that were paid in stock. Whether due to a change in market conditions or the structure of the deals – which usually included restrictions on CIIX’s ability to sell its customers’ shares while performing investor relations services – CIIX was unable to sell these shares at attractive prices, and has changed its selling strategy to focus on cash generations. In terms of the record subscription revenues cited by management in January, CIIX attributed the performance to new online and offline promotional strategies being employed by the company. CEO Warren Wang cited a “thoroughly focused marketing strategy” as well new price points and updated product lines as key drivers of the performance. Importantly, Wang also stated that he was confident that the company would break another new revenue record in the near future, which gives us confidence that the company may report growth in 2017E.

Medicine Man now trading; a potential source of value for CIIX

CIIX’s strategic investment, Medicine Man Technologies, (OTCQB: MDCL) is now trading on the OTC Marketplace, which is a catalyst we have been awaiting. MDCL, a cannabis branding and consulting company with 24 clients and a market capitalization of $17.8mn as of October 10, 2016, reported $0.8mn in revenue and profitable operations for FY15. As of May 31, 2016, CIIX held 1.4mn shares of MDCL, which closed at $1.75 on October 10, 2016. If CIIX were able to sell its position at this price – which may not be a practical assumption due to liquidity constraints – the company’s MDCL stake could be a source of approximately $2.4mn in value to the company – which is slightly less than half the company’s fully diluted market cap.

Price target remains $2.05

Our price target remains $2.05 at this time for CIIX. We view CIIX as a high-risk/high-reward investment opportunity in the micro cap Internet information provider and financial media space, with potential for upside if the company can generate renewed traction with its investor relations services business.

Please review important disclosures at www.seethruequity.com.

About ChineseInvestors.com, Inc.

ChineseInvestors.com, Inc. (‘CIIX’), founded in 1999 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 our 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. www.Chinesefn.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.

Contact:

SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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