New York Based Ludlow China Issues Research Opinion On Dragon Capital Group
SHANGHAI, CHINA -- New York-based Ludlow China issues research opinion on Dragon Capital Group Corp. (PINKSHEETS: DRGV), a leading holding company of emerging technology companies in China, with a ’speculative buy’ rating.
On March 08, 2007, the Company reported unaudited consolidated revenues of $42.29 million for the 12 months of 2006. Net Income before taxes was approximately $1.47 million and consolidated net income after taxes and minority interest deductions was at the high end of the Company’s earlier forecast, reaching approximately $586,340. The Company also reported significant improvement in its balance sheet. Total assets in 2006 rose to approximately $10.1 million with approximately $1.8 million in cash as compared to approximately $3.95 million and approximately $763,000 in 2005 respectively. Shareholder equity rose to $5.23 million as compared to $3.52 million in 2005.
GUIDANCE FOR FISCAL YEAR 2006
The Company anticipates the main driver of its expansion in 2007 will come from internal expansion coupled with the execution of select accretive acquisitions. Management sees 2007 revenues from the current operations of its 7 Chinese subsidiaries in the range of $55 to $60 million with net income in excess of $1.5 million as net margins continue to improve.
Dragon Capital Group Corp.
With a stated 261 million shares outstanding, just over $10 million in total assets, and a $10 million market cap, Ludlow China has issued a ’speculative buy’ opinion on Dragon Capital Group. It is in Ludlow China’s opinion that Dragon Capital Group could provide for some speculative upside from this price range.
A full version of our research coverage and risk factors on Dragon Capital Group can be found at http://www.theasianinvestor.com/reports/drgv.htm
About Ludlow China Fund
Based in New York City, the Ludlow China Fund aims to provide individual and institutional investors with a means to invest in the emerging China market through our diversified fund and index. The Ludlow China Fund owns and operates the Ludlow China Indices, which tracks a wide basket of US traded large and small cap Chinese stocks. http://www.ludlowchina.com
About Dragon Capital Group Corp.
Dragon Capital Group Corp. (PINKSHEETS: DRGV) is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. DRGV functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access to capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV has developed a portfolio of high-tech companies operating in China. For more information about DRGV, please visit http://www.dragoncapital.us
Safe Harbor Statement
Certain statements set forth in this press release constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the word expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company’s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.
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