Thursday, November 21, 2013

EXCLUSIVE: New CFO Makes Bull Case for Century 21 China (CTC)

Last week IFM Investments ("Century 21 China") (ticker: CTC) hired Steve Ye as its new CFO.

Today Steve explained to me exactly why he's so bullish about Century 21 China's prospects (list of research links and contact info below):
"I feel the company (CTC) is very much undervalued. 
It has a national brand, coverage of whole China network, net assets over $50 million, no debt (with cash on hand $30M), while the market cap is only $30M.  
In the mean time, it has strong brokerage business with over 10K agents. It has its own housing site Koofang (like Soufun (ticker: SFUN), which has a multi billion market cap and O2O concept, online website plus offline strong network) and strong mortgaged based lending,(a bright spot and huge potential next year). 
I will do some cost cutting with skills learned at manufacturing, clean up the money losing company. 
Currently, the company is little known as little IR efforts were done in my predecessor's term and I'm going to change that.
One more point is the company has strong corporate governance, the auditing firm is PwC, and law firm is Sherman and Sterling.   
If you look at 20F of the company, there is no material weakness in internal control, very hard to see in Chinese companies.  
The board members are strong as well, 4 independent out of total 9 members. The AC chairman is very experienced and had many roles in US listed companies."
Comment: Definitely a company to research further...
  1. Learn more about Century 21 China from its corporate IR website here.
  2. Sign up for email alerts from the company here.
  3. Request more information from the company here.
  4. Reach the CFO directly here.
  5. Research the company at Yahoo! Finance here.
  6. See what people are saying on Twitter here.
  7. See what investors are saying on StockTwits here.
Disclosure: None

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