The stock price of China Education Alliance (NYSE: CEU) is cheap by any metric.  The question is: “Why is China Education Alliance trading at an 8 P/E in an industry that trades at 22 P/E, particularly when the company has $2.17 per share in cash, or $69 million.  The stock is up from $2.45 last May and has been as high as $7.48, but is currently trading at $4.72.

The education sector has grown at an average of 9.7% per year over the last 30 years in China.  CEU is flush with cash, $69 million, and will deploy the capital to acquire profitable education companies.  We cannot predict with certainty when an acquisition will be completed, but when it happens and is announced, investors want to be in the stock long before then.  At some point in time CEU will trade at a fair market value, which is 20x EPS in line with EDU, CAST, and CEDU.  At 20x EPS the stock would trade in the $11-$12 range.  The Company projects 30% growth top and bottom line in fiscal 2010.  At current price levels, this is one of the best buys in the RedChip portfolio.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Gary McKenzie, host of RedChip Small-Cap Radio

Financial talk show features small-cap news and CEO interviews and airs every trading day from 3 p.m. to 4 p.m. ET

RedChip Companies, Inc., announced that its financial talk show, RedChip Small-Cap Radio™, will add Monday through Friday programming via satellite in the Greater New York and  Orlando markets starting Monday, May 3, 2010. The daily radio program can be heard every day from 3 p.m. to 4 p.m. Eastern time in New York City; Greater Metropolitan New Jersey; Connecticut; Philadelphia; Washington, D.C.; San Francisco; Seattle; and Orlando. The program is also streamed live and on demand at www.RedChip.com.

RedChip Small-Cap Radio™ is a radio news forum that addresses general market and small-cap news and features interviews with the executives of prominent small-cap companies.

The financial talk show regularly showcases exclusive CEO interviews conducted by hosts Dave Gentry, President and CEO of RedChip Companies, and Gary McKenzie, a nationally known financial talk show host and former CBS Radio Network anchor. RedChip Small-Cap Radio dedicates its daily hour to profiling undiscovered small-cap companies before they show up on Wall Street’s radar screen.

Host Gary McKenzie said, “Adding Monday through Friday coverage in the New York City and Orlando markets substantially boosts the reach of the program, but adding satellite delivery is a quantum leap for us because it means thousands of radio stations will now have access to the program.”
The program is available effective Monday, May 3 on the Wegener Unity 4000 receiver.

RedChip Radio is found at AMC-3, SR 5. RedChip Radio is also available via the AMC-8, XDS Starguide receiver. RedChip is promoting the satellite roll-out in 250 radio markets with print and online advertising in Radio Ink and Talkers magazines.

A few of the companies featured on RedChip Radio this week include Seanergy Maritime Holdings Corp. (NasdaqGM: SHIP), L&L Energy (NasdaqGM: LLEN), China Natural Gas (NasdaqGM: CHNG), China Linen Textile Industry (OTCBB: CTXIF), and China Education Alliance (NYSE: CEU).

To listen to archived shows, please visit:  http://www.redchip.com/visibility/Radio/radioMain.asp?page=archive

About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Qingdao and Beijing, China; Paris, France; and Seoul, Korea. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including:  RedChip Research™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™.  To learn more about RedChip’s products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.

“Discovering Tomorrow’s Blue Chips Today”™

Disclosure:  None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor’s objectives, other securities holdings, financial situation needs, and tax status. RedChip Companies, Inc. receives compensation in the form of cash and/or stock or services from some companies featured on the show. Associates and employees of RedChip Companies, Inc. may from time to time, trade securities of client companies and companies covered in RedChip publications and programs.  For full financial disclosures on RedChip clients, visit http://www.redchip.com/disclosures.asp?src=rcv.

Contact:
RedChip Companies, Inc.
Brad Kline, 1-800-RedChip (733-2447), Ext. 113
info@redchip.com

Eleven RedChip stocks hitting their 52-week highs in 2010 include American Lorain Corp. (NYSE Amex: ALN); China Education Alliance (NYSE Amex: CEU); China Gengsheng Minerals (OTCBB: CHGS); China Wind Systems (NASDAQ: CWS); China New Media Corp. (OTCBB: CMDI); China Linen Textile Industry (OTCBB: CTXIF); L & L Energy, Inc. (OTCBB: LLEN); Longwei Petroleum Investment Holding (OTCBB: LPIH); NovaGold Resources (TSX: NG, AMEX: NG); G. Willi-Food International Ltd. (NASDAQ: WILC); and ZST Digital Networks (NASDAQ: ZSTN).

In related news, REDCHIP VISIBILITY™, a division of RedChip Companies, recently announced the 2009 year-end performance of the RedChip Visibility Research Index, comprising high-growth, small-cap stocks under research coverage. For 2009, the annual return for the RedChip Visibility Research Index was 199.51%.

Disclosure: The subject securities are clients of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

The kosher food market is a growing and globally expanding market as the number of kosher food consumers worldwide is now eclipsing 10 million. A staggering statistic which bodes well for G. Willi- Food International LTD. (NasdaqCM: WILC), an Israeli-based company specializing in high-quality, great-tasting kosher food products. The Company is a dominating force in the still growing kosher food industry in Israel and has now set its sights on the U.S. market.

As one of Israel’s leading food importers, WILC markets and sells its food products to over 1,500 customers in Israel and around the world including large retail and private supermarket chains, wholesalers and institutional consumers. In 2008 the Company sold 80% of their products in Israel, with the remaining 20% being split equally between the U.S. and Europe. However, looking forward CEO Joseph Williger sees WILC’s global presence altering dramatically with a goal for 2011 of 50% of products being sold in Israel and the remaining 50% being split between Europe and the United States.

Many Americans might think kosher foods are sold mainly to Jews or vegetarians, but surprisingly the largest consumers of kosher products are the one in five people who are of Muslim faith. Furthermore, as Americans become environmentally sensitive in a time of “label reading,” an increasing number of people of non-muslin decent are now turning to kosher food products. Only about 15% of people who buy kosher do it for religious reasons, according to Mintel, a research group that last year produced a report on the kosher food explosion. The top reasons cited for buying kosher? Quality, followed by general healthfulness.

Even with market data revealing a $200 billion kosher food industry growing at 15% year-over-year (Market Trend, 2008) the majority of the food industry has yet to realize the profits to be made by converting their food to kosher, giving WILC the opportunity to dominate the market both in the U.S. and Europe.

With continued growth and expansion into the U.S. market, WILC should generate revenue and earnings growth of a minimum of 25% in 2010. Since RedChip began coverage in mid-December 2009 WILC has had an impressive 35% rally to the upside from $5.09 to a January 19 close at $6.87.

With a game-changing geographic expansion underway and deals with major U.S. retail chains in the works, WILC is well positioned to benefit from a growing Kosher market where it has the advantages of experience and financial strength.

Disclosure: G. Willi-Food International, Ltd. is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

China Education Alliance, Inc. (NYSE Amex: CEU)

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.

Disclosure: China Education Alliance, Inc. is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

NovaGold just entered into an agreement to purchase a 100% interest in the Ambler property in northern Alaska, which hosts the high-grade copper-zinc-gold-silver Arctic deposit — one of the world’s largest and highest-grade undeveloped copper-zinc, volcanogenic massive sulfide (“VMS”) deposits. The Ambler property comprises 36,670 hectares (90,614 acres) of federal patented and unpatented mining claims and State of Alaska mining claims, covering a major portion of the precious-metal-rich Ambler VMS belt.

With four major projects in Alaska and British Columbia, NovaGold operates in safe geopolitical jurisdictions:

• 50% equity partner with Barrick Gold (NYSE: ABX) in Alaska’s Donlin Creek project, one of the largest undeveloped gold deposits in the world, with more than 29 million ounces of proven and probable gold reserves and estimated to produce more than one million ounces of gold annually for a 20-plus-year mine life when operational
• 50% equity partner with Teck Resources (NYSE: TCK) in Canada’s Galore Creek project, a world-class copper-gold-silver deposit with measured and indicated resources of 9 billion pounds of copper, 7 million ounces of gold and 123 million ounces of silver
• 100% equity interest in Nome Operations in Alaska, the Company’s most advanced stage development property with a nearly constructed gold mine expected to produce 100,000 ounces of gold annually when in operations
• 100% equity interest in Alaska’s Ambler property, which hosts one of the world’s largest and highest-grade undeveloped copper-zinc-gold-silver deposits

Disclosure:  NovaGold Resources, Inc. is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

But what if we could stay warm without relying so much on our electric and gas companies and better yet, what if the solution was accessible almost anywhere?

As it turns out, the ability to heat buildings and homes using the earth’s own natural heat source has been around for over 50 years. It’s called geothermal technology and it’s one of the most basic forms of reusable energy. Now geothermal technology is grabbing the headlines as Congress and the President consider imposing mandates on renewable energy use and global leaders return from climate talks in Copenhagen.

One company joining the renewable energy discussion is Alter NRG (OTCQX: ANRGF; TSX: NRG), an emerging clean, alternative energy company which recently acquired Clean Energy Developments Corp., an award winning and leading integrator of products for geoexchange products to the commercial and residential building industry.

Geoexchange uses energy, in the form of heat, stored 10 to 15 feet under the Earth’s surface. The Sun’s energy heats up the surface of the earth as well as underneath. At depths of 10 to 15 feet under the surface, temperatures remain stable year-round due to insulation from the layers of rock and dirt. During the winter it is warmer than the above ground temperature and during summer it is cooler. The geothermal heat pump transfers heat stored in the ground into buildings or houses during the winter and transfers it back into the ground during the summer. These pumps can be used for space heating and cooling and also water heating.

Geoexchange facts:

• A geoexchange system can reduce energy consumption and corresponding emissions by more than 40% compared to air source heat pumps and by over 70% compared to electric resistance heating with standard air-conditioning equipment.
• Just one geoexchange system installed in an average home is the equivalent of planting 750 trees.
• Each geoexchange system represents a savings to homeowners of 30% to 70% when heating and 20% to 50% when cooling.
• Since the geothermal pump is using a reusable energy source and decreasing the need of fossil fuels, the consumer is reducing their carbon footprint while lowering operating costs.
• A geoexchange system has a typical payback period of 5 to 6 years for larger installs.

So what does a plasma gasification company like Alter NRG want with a Geoexchange company? Well, with the acquisition of Clean Energy Developments Corp., Alter NRG looks to enter into the fast growing Canadian geoexchange market. According to Ted Kantrowitz, VP of the Canadian GeoExchange Coalition, early reports indicate that the geoexchange industry is growing between 40% and 260% depending on the region.

Clean Energy hasn’t been able to take full advantage of this sleeping giant due to poor capitalization for the past few years. However, Alter NRG’s strong balance sheet, with over $30 million in cash reserves, will allow them to take full advantage of Clean Energy’s potential and compete on larger projects throughout the highly fragmented Canadian market. This acquisition fits perfectly with Alter NRG’s vision of “Commercializing growth technologies through developing environmentally sustainable and economically viable alternative energy projects.”

Alter NRG believes it can become the market leader in turnkey geoexchange systems and will be able to generate over $100 million in sales per year from this segment within the next 3 to 5 years, which would represent an earth shattering 1,963% growth in revenue over FY08 revenue of $4.8 million.

Now that’s a growth strategy I can warm up to.

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.

Disclosure: American Lorain Corporation is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

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.

Disclosure:  China Education Alliance, Inc. is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

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.

Disclosure:  Royal Standard Minerals, Inc. is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.