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ChineseInvestors.com Inc (OTCMKTS:CIIX) Could Be About To Turn Around Its Revenue Decline

ChineseInvestors.com Inc (OTCMKTS:CIIX) Could Be About To Turn Around Its Revenue Decline
Written by
Chris Sandburg
Published on
January 18, 2017
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A sub-$10 million over-the-counter stock with a name like ChineseInvestors.com Inc (OTCMKTS:CIIX) doesn't scream sure thing. While the company's operations aren't directly related to any Chinese entity, the Asian investment landscape has been fraught with scams over the last half decade and more, and it's hard to disassociate this landscape from a company with China in its name.A look under the hood, however, reveals what might be a pretty interesting pick. To explain away the name, the company was set up in Colorado back in 1999 as a portal through which the Chinese speaking population in the US could access stock market data and investment education. Think of it as an Investing.com with a Chinese symbol user interface. It's still around in an albeit updated iteration of its legacy setup, accessible here.The company went public in 2011, and has spent the last six years trying to expand its revenue streams outside of the traditional advertising and subscription-based model generally associated with this sort of website. With a brief period early 2014 aside, however, it has remained a sub penny stock. With that said, it has been to generate a pretty decent top line for a company of its size. 2014 revenues came in at $3.9 million for a net income of $1.15 million. 2015 sales hit $2.44 million – a decline, but still not too bad for a sub penny entity. 2016 revenues declined again, coming in at around $900,000. In line with these revenue declines, the company's PPS also steadily declined.That is, until last month, when the company announced it was moving into the cannabis space, with a focus on marketing cannabidiol (CBD) products to the Chinese market. According to the releases associated with the announcement, ChineseInvestors has struck a deal with a well-known CBD brand, and as per a recent release, which hit press at the beginning of this month, the company is ready to launch by way of a Chinese language platform at the end of January.It's a little speculative, but we can say with some degree of certainty that the well-known CBD brand is Medicine Man. Why? Because by way of its board and management, the company has a very close relationship with this brand. Indeed, one of its board of directors just stepped down to focus on his commitment to MM.So what is next, and how might this impact the company going forward? At the end of last week, ChineseInvestors announced a new HQ location for its CBD brand – ChineseCBDOil – in Shanghai. Once these headquarters open, the company expects to start employing staff after the Chinese New Year ends (after January 28). The company has also built and deployed a mobile application similar to Yelp, which it expects will be the first Chinese language application of its type through which users can discuss and rate cannabis products in China. There are 2 billion people in China, and many are aging and suffering from various conditions that CBD has been shown to improve. In other words, there is a big market out there, and if ChineseInvestors can execute on its strategic plan, then it could quickly start bringing in multiples of its current revenues, and get its growth trend back on track.So what is our final take? The company is currently trading just below a dollar, and we think that there is some immediate momentum potential on a break of the one-dollar mark. Beyond that, if ChineseInvestors can hold above dollar support, it should start to attract some speculative buy volume, and in turn, continue on its current run.Farther down the line, we are looking for releases that reinforce the company's growth potential in China as longer-term catalysts.We will be updating our subscribers as soon as we know more. For the latest updates on CIIX, sign up below!Disclosure: We have no position in CIIX and have not been compensated for this article.

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