Foreign Investment: The best of the best stock picks in China

Posted March 4, 2008

"Some time last fall, Lingo sold its 193rd millionth title in China. At about the same time, November 30, Kraft’s company also reported yet another unprofitable quarter. Still, Lingo’s year-to-date revenues increased 783%." — Andy Carpenter

by Andy Carpenter

Baltimore — (TFN): You’ll have to read down a bit to see why you should be so happy that I got evicted from my Beijing office space last month.

The end result should yield you a nice speculative China investment play. So, if you rush ahead to find out why I got the boot, you’ll only have to backtrack

That’s because this story starts way back in the years before the turn of the century. That’s when a smart man from Toronto traveled the globe selling magazines and paperback books to gas stations and convenience stores.

It was a great job for a man without a wife or children.

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The man is Michael Kraft. He eventually parlayed his love of publishing and his experience in China into a small company that sells English as a second language products to Chinese elementary and secondary schools.

Foreign Investment: No profits? No problem!

Today, Kraft is CEO of the company – Toronto-based Lingo Media Corporation. Its stock trades on the Toronto Stock Exchange as well as in the U.S. on the OTCBB.

Some time last fall, Lingo sold its 193rd millionth title in China. At about the same time, November 30, Kraft’s company also reported yet another unprofitable quarter.

Still, Lingo’s year-to-date revenues increased 783% to $2,533,504 as compared to $286,869 to 2006. The company also managed to reduce its losses from $836,865 to $587,442. More importantly, the losses dramatically decreased from 291% to 23% of revenue.

The reason revenues are small is one of those good-news, bad-news deals. Read on to learn more (find the article at the bottom of the page).

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