American Lorain Corporation (NYSE Amex: ALN), an international processed foods company based in Shandong Province, People’s Republic of China (“PRC”), got a boost in September when it began trading its common stock on a senior exchange, NYSE Amex, under the ticker symbol “ALN.”

Chairman and CEO Si Chen commented in their news release:

“Moving from the OTC BB to NYSE Amex is a major milestone for American Lorain, as we strive to improve liquidity and transparency for our shareholders. Trading on NYSE Amex is also an important endorsement of the Company as a major player in the food processing industry in China and helps us build credibility with our customers worldwide.”

American Lorain Corporation, a leading processed foods company that sells chestnuts, convenience foods, and canned, frozen and bulk food products both domestically and internationally through its subsidiaries, is also gaining momentum with its marketing strategies and innovation based on marketing tests, particulary for its convenience food products: Ready-to-Cook (RTC), Ready-to-Eat (RTE), and Meals Ready-to-Eat (MRE). This MRE product recently saw a boost to sales and product placement through ALN’s strategic alliance with leading convenience store chain, Beijing K.P.I. Hi-24 Convenience Stores Co., Ltd.

ALN, who produces approximately 50 varieties of chestnut products including aerated open-bottom chestnuts and sweetheart chestnuts, is also attending the world’s largest food and trade show, Anuga, being held in Cologne, Germany, October 10th through 14th. Beijing Lorain, a Lorain Group Company, will be exhibiting at the trade show event, which attracts over 160,000 industry visitors and is considered by many to be the most important food and beverage trading hub.

Chestnuts: A $2.1 billion market

It is estimated that chestnuts have been cultivated in China for at least 2,000 years. A versatile nut, the chestnut is the only nut to contain Vitamin C, as well as significant protein and more fiber than an apple. The chestnut can be used to make flour for bread, or can be candied, boiled, steamed, grilled, roasted or fried (as fritters), or used as a stuffing for vegetables or poultry. As chestnuts are a seasonal product, ALN leases or owns a total of 23,700 metric tons of storage, and plans to expand capacity in 2009 by adding an additional 6,000 tons of storage. The market for chestnuts is currently estimated to be about $2.1 billion, worldwide. China accounts for approximately 60% of the world’s chestnut output.

With well-established domestic sales distribution channels that cover 26 provinces and administrative regions in China (including large supermarket chains and wholesalers) as well as international sales channels that reach 42 countries, ALN is poised for growth, particulaly as it moves to capitalize on higher-margin convenience foods.

The Company has $29.1 million in working capital (as of June 30, 2009) and is trading at 5x P/E (ttm) while its competitors trade at 10-12x P/E (ttm). ALN is also under strong leadership as Mr. Si Chen, the company’s founder, Chairman and CEO, is an expert in the food sector with over 20 years industry experience.

American Lorain is definitely a stock to watch.

Recently, a new gold rush seems to be raging. The price of gold continues to hover around the thousand-dollar threshold, and the current economic climate recalls the $2,300 high of 1980 (adjusted for inflation). While the debate rages between buying actual gold and buying gold stock, a third option exists that is often overshadowed by the first two.

The following excerpt is from the article “Invest in Precious Metals Miners During the Coming Earnings Season” on Seeking Alpha, by username “Hyperinflation”:

As for the gold miners (which I’m slightly more bullish on for earnings season, as opposed to the silver miners), they have averaged a record three-month (quarterly) market price. This, combined with many miners scrambling to ramp up production on new projects, will easily surpass past revenue records among the miners. Augmenting this fact, are the very low cash costs (and all in costs for that matter), which will undoubtedly help to set record net profits, cash flows and operating margins.

This suggestion, to drive directly to the source of a commodity rather than focus on its handlers, is a savvy one that exposes many smaller mining operations to investor attention. Another reason to consider gold miners is that the price of gold often rises faster than the miners’ costs, leading to higher margins. Partnered with some of the world’s leading mining producers, NovaGold Resources Inc., (NYSE Amex: NG) – an Alaska-based company focused on gold exploration, development and mining — is a small-cap gem to watch. Consider these company highlights:

• 50% ownership with Barrick Gold (NYSE: ABX) on Donlin Creek mine (expected to be one of only a handful of gold mines worldwide capable of producing over one million ounces of gold annually. The mine has proven and probable reserves estimated at 29.3 million ounces of contained gold).
• NovaGold has one of the largest resource bases among its peers with 15.2M ounces of gold reserves and 5.2M ounces of inferred gold reserves.
• 100% ownership of Nome Operations, a fully constructed gold mine in Alaska expected to produce 100,000 ounces of gold annually when production commences.
• Total acquisition and discovery costs of less than $4 per ounce of gold and 2 cents per pound of copper.

NovaGold’s Donlin Creek property, based on the feasibility study, has been designed as a year-round, open-pit operation with plant start-up anticipated for 2015. With the current 29.3 million ounce gold reserve base, the anticipated life of mine of 21 years with a mill throughput of 53,500 tonnes per day. When built, the mine is expected to produce nearly 1.6 million ounces of gold annually for the first 12 years of a 20-plus-year mine life, at cash costs in the lower half of the industry — $349/oz. And the company has one of the best track records in the industry when it comes to strategic acquisitions and resource growth.

Additionally, in early 2009, NovaGold successfully negotiated amendments to the Galore Creek Partnership Agreement. The new agreement confirms that NovaGold and Teck Cominco (NYSE: TCK) each continue to hold a 50% interest in the project, but under the amended agreement Teck will now fund all Galore Creek costs from November 1, 2008 until Teck has contributed 100% of its buy-in for the project. As a result, NovaGold expects to have no near-term funding obligations for the Galore Creek project — one of the largest and most advanced copper projects in North America. With 1,300 million tonnes of high-grade copper-gold-silver porphyry resources and a number of untested targets, NG believes there is considerable potential to increase Galore Creek’s resource base. Indeed, since acquiring Galore Creek in 2003, NovaGold’s exploration team has more than tripled the size of the project’s resource base.

Also significant: As of May 31, 2009, NovaGold had $56.1M cash and cash equivalents. As its projects advance toward production, we believe NG offers significant value and potential growth to investors.

China Gengsheng Minerals, Inc. (OTCBB: CHGS), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, announced in September that it received $337,000 (RMB 2.3 million) from the Henan Provincial Government in subsidy for the development and commercialization of Gengsheng’s new product line of fine precision abrasives, which target solar industry customers.

China Gengsheng announced in July 2009 that it began trial production for its fine-precision abrasives product line. The abrasives are ultra-fine grains of silicon carbide, white fused alumina, and blend materials used in the cutting and polishing of optical equipment, semiconductors, and fine metal surfaces to improve finish quality. The products are produced at CHGS’ new facilites in Gongyi City, Henan Province, which were completed in April and have an annual production capacity of 20,000 tons.

Gengsheng uses its patented technology to focus on producing lapping abrasives and polishing compounds for the processing of silicon wafers among Chinese solar cell manufacturers, who at the moment import such abrasives products from Japan and France. To compete successfully with import materials, Gengsheng will secure sources of raw materials in Xinjiang Uygur Autonomous Region to achieve low-cost advantage, along with its own proprietary technology to improve manufacturing efficiency.

The solar industry in China is hot for a myriad of reasons. One reason is the aforementioned government subsidies: In March, the government approved a subsidy for building-mounted photovoltaic systems which could pay up to 20 yuan per watt for systems larger than 50 kilowatts. For ground-mounted projects, the government is paying a feed-in tariff for the electricity generated, instead of a subsidy based on the projects’ capacity.

Another reason for China’s burgeoning solar industry is China’s manufacturing edge: With 400 photovoltaics (solar cell) manufacturing plants, China produces 18% of the world’s PV products. The recent government stimulus project poured money into solar and renewable energy projects, but mandated that all moneys must be spent on Chinese labor and utilize Chinese products and services, a boon for companies like China Gengsheng.

CHGS’ main busines lines include monolithic refractory products for steel companies and ceramics used in the oil industry. The company currently generates approximately 80%-85% of its total revenue from sales and services related to its refractory product, which is used as linings for furnaces and other high-thermal processes, mainly by steel producers. The refractory market is fragmented, and China Gengsheng has become the market leader in the monolithic segment.

Revenue for the company’s second largest business line, fracture proppants, which was launched in 2Q07, has grown 11 times in FY2008. Fracture proppants are used to reach trapped pockets of oil and natural gas deposits, leading to higher yields from oil and natural gas wells. The company has been certified by PetroChina, Sinopec and CNOOC as a first-tier supplier.

Now, with their third business line, fine precision abrasives, which is expected to be commercially launched in 3Q09, CHGS could experience the next sweet spot of growth.

Royal Standard Minerals, Inc., (OTCBB: RYSMF) is a natural-resource exploration and development company moving into the ranks of active Nevada gold producers. Nevada accounted for 83% of all gold produced in the United States in 2008 and nearly 9% of the world’s gold output. So it makes sense to say that Royal Standard is in the right place at the right time.

Royal Standard owns 100% interest in a total of six Nevada projects, with its potentially lucrative Goldwedge property within the Manhattan Mining District in Nye County moving to feasibility. Royal Standard just announced plans to install larger ball mills and an additional concentrator, as well as launch other technical changes to improve throughput and productivity to approximately 500 tons per day. This effort also should improve reliability, reduce plant operating costs and significantly increase daily gold concentrate production values. The property lies on the Central Nevada Caldera trend, which also hosts the world-class Round Mountain gold mine.

The other Nevada projects offer excellent potential to expand mineral resources: Pinon and Darkstar in Elko County, and Fondaway Canyon and Dixie-Comstock in Churchill. Each site is located near properties owned by major gold producers such as GoldCorp, Kenross, Newmont, Barrick and Placer Dome. The Company announced recently it has identified a number of new drill targets that have potential to be additive to the current near surface gold-silver resources at Pinon and Darkstar and for deep, underground, “new” gold resources. RYSMF also believes Fondaway, which was previously operated by the company Tenneco, possesses excellent potential for expansion. In addition, RYSMF also has obtained a signed agreement for a 50% interest in a coal-mining operation in Wolfe County, Kentucky.

China Education Alliance, Inc. (NYSE Amex: CEU) is a fast-growing educational services company operating in a market estimated at $15 billion. CEU recently reported strong results for the third quarter ended September 30, 2009.

CEU has built a consistently profitable, high-margin business model: 78% gross profit in online education through the first nine months of 2009, 75% in its training centers, 78% company-wide. Its growth rates are equally eye-popping: gross revenues up 69% year-over-year in the first nine months, net earnings up 68%.

From the Company’s earnings press release:

Financial Highlights for the Three Months Ended September 30, 2009

• Total revenue increased 43.3% year-over-year to $10.23 million, compared to revenue of $7.15 million in the third quarter of fiscal 2008.
• Net income increased 51.4% year-over-year to $4.17 million, compared to net income of $2.76 million in the third quarter of fiscal 2008.
• EPS was $0.16 per fully diluted share, compared to EPS of $0.11 per fully diluted share in the third quarter of fiscal 2008.
• Operating income totalled $4.44 million, compared to an operating income of $2.86 million in the third quarter of 2008.
• Gross profit rose 42.7% to $8.22 million or 80.4% of sales, compared to 80.7% of sales or $5.76 million in the third quarter of 2008.

The Company is uniquely positioned to fill the void in the two leading areas of China’s highly fragmented private education market: exam-oriented and test-preparation products and services for students age 6-18, and vocational skills and professional certification training for adults age 18 and up.

CEU’s online education business generates more than two-thirds of its revenues. Through its website, CEU offers more than 300,000 sets of exam-oriented testing papers, coursework and video-on-demand – all downloadable – for students at all levels from elementary school to university. Students are issued rechargeable debit cards to purchase these materials.

It’s a formula that adds up to success – for China Education Alliance and for its shareholders.

China Natural Gas Inc. (NasdaqGM: CHNG) is one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas for vehicular fuel in China’s Xi’an area of Shaanxi province. The Company recently released its third quarter 2009 financial results, which showed gains in total revenue and gross profit. CHNG is the first China-based natural gas company publicly traded in the United States.

China Natural Gas owns and operates approximately 120 kilometers of compressed natural gas pipeline in Xi’an, a fast-growing area supported by a population of 8.5 million and the “gateway” to the broad western regions of China. CHNG has three profitable business segments: (1) retail natural gas at company-owned natural gas fueling stations; (2) end-user delivery of natural gas services to residential, commercial and industrial customers; and (3) conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles.

The Company continues to expand its compressed natural gas fueling station network in Shanxi province through acquisition and construction, and in other provinces through joint ventures. CHNG has expanded its retail business into Henan province, China’s most populous province with a population of more than 100 million. The Company currently operates 36 retail compressed natural gas fueling stations in Shaanxi and Henan provinces.

CHNG has moved into the liquid natural gas market with the construction of a liquid natural gas processing and distribution plant in Jingbian. With completion expected in early 2010, this plant initially will have an annual processing capacity of 150 million normal cubic meters.

Financial highlights for the three months ended September 30, 2009:

• Total revenue rose 9.4% year-over-year to $20.13 million in the third quarter of 2009, from $18.40 million in the year-ago period.
• Net income totaled $4.65 million in 3Q09, compared with $5.14 million in 3Q08. EPS was $0.29 per fully diluted share in 3Q09, compared to $0.35 in 3Q08.
• Gross profit was $9.72 million in the third quarter of 2009, up 2.4% from $9.49 million in last year’s third quarter.

Three prominent philanthropic organizations — The Angel Fund, The ALS Therapy Alliance, and Project ALS – have provided funding to RXi Pharmaceuticals Corporation (NasdaqCM: RXII) and Dr. Robert Brown, Chair of the Department of Neurology at the University of Massachusetts Medical School, to study the use of RXi’s self-delivering rxRNA? (sd-rxRNA?) compounds as a potential treatment for amyotrophic lateral sclerosis — ALS or Lou Gherig’s Disease.

UMass Medical School is planning to open a new laboratory research facility that includes the RNA Therapeutics Institute, which will be co-directed by Craig C. Mello, PhD, a Howard Hughes Medical Institute Investigator and the Blais University Professor of Molecular Medicine at the University of Massachusetts Medical School. Mello was a co-recipient of the 2006 Nobel Prize in Medicine for his discovery of “RNA interference” and is also the Chairman of RXi’s scientific advisory board.

In other news, on November 23, RXi announced the company won Frost and Sullivan’s 2009 North American RNAi Therapeutic Design and Delivery Technology Innovation of the Year Award for the development of its proprietary RNAi compounds, rxRNA?, and advanced delivery approaches. The rxRNA? compounds are designed specifically for therapeutic use and contain many of the properties needed to develop RNAi-based drugs.

President and chief executive officer of RXi, Noah Beerman, commented on the award in the company’s news release:

“We are honored to receive this prestigious award. RXi has built a comprehensive RNAi therapeutic platform based on innovative technology that we are using to advance internal therapeutic programs as well as those of our partners and collaborators. RXi’s therapeutic platform consists of rxRNA? compounds optimized for therapeutic applications and advanced delivery technologies for both local and systemic delivery. For these accomplishments, RXi has been recognized with the Frost & Sullivan RNAi Technology Innovation of the Year Award.”

The Technology Innovation Award is awarded yearly to a company (or possibly one person) whose research has developed into a new innovation or could possibly bring about big changes to the industry. The award is a symbol of dedication to its winner’s research, development, and vision for the future.

RXi is one of three public pure-plays in RNAi. With its strong technology platform, broad intellectual property position, adept management team and world-class scientific advisors, including Dr. Craig Mello, the company appears well-positioned to compete successfully in the RNAi therapeutics market.

American Lorain Corporation (NYSE Amex: ALN) is a leading processed foods company operating in the People’s Republic of China. It produces and sells 234 varieties of food products in three main product lines: chestnuts; convenience foods; and frozen, canned and bulk foods. Company management recently reaffirmed its expectations of 25-30% gains in 2010 sales and earnings.

American Lorain is the largest manufacturer of processed chestnut products in China. The Company launched its chestnut business in 1995 and currently produces about 50 high value-added processed chestnut products. ALN’s food products are sold in 26 provinces and administrative regions in China, as well as in 42 countries.

Chestnut products are the Company’s highest margin products, but its sales are seasonal. In an effort to reduce the impact of seasonality on its operations, the Company has steadily increased production of frozen, canned and bulk foods, as well as convenience foods such as meals ready-to-eat. Non-chestnut foods are expected to contribute an increasing portion of ALN’s total sales as Chinese consumers shift consumption toward branded, modern food products.

American Lorain has enhanced its cooperation with supermarkets and restaurant chains to help boost domestic market share. ALN products have successfully entered 115 Wal-Marts, 84 Carrefours and 2,700 other markets and convenience stores. Additionally, a new agreement with two popular restaurant chains in China provides ALN with an opportunity to strengthen its domestic sales.

Company management projects sales and earnings gains of 25-30% in 2010 based on three compelling factors:

• ALN’s strategy of strengthening domestic sales channels through shifting sales to agents will provide a wider distribution for its food products with access to more supermarkets and convenience stores.
• New agreements with popular chain restaurants in China, such as KUNGFU Catering Management Co. and CSC Catering Management Co., will begin adding significant revenue in 2010.
• A nationwide marketing campaign, funded by a recent private placement transaction which raised $12 million, will boost sales, particularly in the convenience food segment.

RedChip Visibility, a division of RedChip Companies, recently issued a first quarter fiscal year 2010 research note on Longwei Petroleum Investment Holding (OTCBB: LPIH), a diesel, gasoline, fuel oil, and solvent oil distributor operating in China’s Shanxi Province. Rahul Sowani, Research Analyst for RedChip, reiterated a Strong Buy rating and raised the target price on LPIH shares to $5.00.

Sowani wrote in the report:

“Longwei’s 1QFY10 performance was better than expected and the top line will further strengthen as the new Gujiao facility becomes fully operational. Management is expecting an additional $40 million in revenue and $6 million in net profit in FY10 which we believe is attainable given the vast customer base available in Gujiao. With strong macro-economic indicators of the Chinese economy and the Gujiao facility development nearing completion, we expect Longwei to strengthen its current market position and aggressively pursue additional market share in Shanxi Province.”

Longwei’s revenue for the year ended June 30, 2009 was $196.8 million, a year-over-year increase of 36.9%. Net income for the year ended June 30, 2009, excluding one-time items, was $26.5 million, a year-over-year increase of 28%.

Jim Crane, CFO of Longwei, recently presented at RedChip’s China Equities Conference in Shanghai on December 8th. During the presentation, Crane stated that Longwei’s new 70,000-metric-ton capacity oil depot facility in Gujiao, located about 30 miles from their existing storage facility in Taiyuan, is expected to be fully operational on or near January 1, 2010. The facility is already delivering on small orders.

Crane noted that Longwei is uniquely positioned as one of only three private, fully licensed oil distributors in Shanxi Province who has significant storage capacity and the only one in Gujiao — a key competitive advantage. Though Gujiao is geographically close to Taiyuan City, the customer base in Gujiao will consist of mostly coal plants, while the Taiyuan facility serves mostly gas stations.

Crane also stated that of the 11-13 key customers identified for the Gujiao facility, Longwei has preliminary contracts signed with six. These agreements are an indication of how much product the customers will buy throughout the year, though Crane says they are difficult to valuate because of the fluctuations in gasoline and diesel prices. (Gas prices determine the value of their current inventory and their revenues.) On November 10th, China’s National Development and Reform Commission mandated an increase on the retail prices of gasoline and diesel by CNY480 (US$70.28) per metric ton, which means the average price for #90 gasoline and #0 diesel increase 0.36 and 0.41 yuan per liter, about 6%-7%, respectively. Good news for Longwei.

To receive a complimentary copy of the RedChip Visibility Research Report for Longwei, please visit:
http://www.redchip.com/about/aboutmain.asp?pg=vr&rid=206

China Education Alliance, Inc. (NYSE Amex: CEU) posted a new 52-week high in December as investors begin to realize that the shares may be undervalued. After all, shares in the largest China education company, New Oriental Education and Technology Group (NYSE: EDU), trade at a forward price-to-earnings ratio of about 30. At the same forward P/E, CEU stock would trade at $17, an upside of at least 200% from current price levels.

Recent articles at Seeking Alpha and Motley Fool demonstrate that the word is getting out: CEU may offer a shrewd investment opportunity for anyone looking for interesting foreign assets to help diversify a portfolio.

China Education Alliance is a leading education services company providing high-quality online education materials, vocational training services and onsite tutoring services in the People’s Republic of China. More than 500,000 students so far have used the Company’s online tests and test preparation materials, and rapid growth is expected to continue as Chinese Internet use explodes.

Why invest in China’s education sector? Consider these points:

• China’s online population will be the world’s largest by 2012: an estimated 492 million Internet users
  Fast-growing middle class with increased resources for education
• Mandatory annual testing for education progression, with preparation starting at age 6
• Uneven distribution of education resources results in students and parents seeking outside access to quality instruction via the Internet
• Education spending is expected to rise to 4% of China’s gross domestic product by 2010

CEU recently reported strong third-quarter 2009 financial results. Total revenue increased 43.3% year-over-year to $10.23 million, compared to revenue of $7.15 million in the third quarter of fiscal 2008. Net income increased 51.4% to $4.17 million, or $0.16 per fully diluted share, compared to net income of $2.76 million, or $0.11 per share, in the prior-year quarter. Gross profit rose 42.7% to $8.22 million, or 80.4% of sales, compared to $5.76 million in the third quarter of 2008.