If there were an end-of-year award for “Best Business Transformation,” it would undoubtedly go to ChromaDex Corp. (OTC BB: CDXC). For most of its 12-year operating history, CDXC has supplied reference standards and laboratory testing services to high-profile clients such as the FDA, USDA, Pfizer, Estee Lauder, Nestle and Kraft. But this year, in its first major commercialization effort, CDXC made major strides toward transforming into a consumer products company with the launch of its first retail product line, BluScience. BluScience launched in GNC (NYSE: GNC) stores during the third quarter and is expected to start generating significant revenues in 2012. CDXC is also set to expand distribution for BluScience into additional mass market channels in early 2012, as the rollout of BluScience ramps up.

CDXC also launched pTeroPure the ingredient in 2011, the Company’s first proprietary product and the key component in BluScience, in 2011. pTeroPure, based on a compound found naturally in blueberries, was awarded Frost & Sullivan’s “Most Promising Ingredient of the Year” for its tremendous market potential. The health benefits of blueberries are widely known, and pTeroPure has the potential to positively impact heart health, improve cognitive function, and promote healthy aging. pTeroPure’s potential applications in dietary supplements, food and beverage products, cosmeceuticals, sun care and pharmaceuticals, add up to an estimated $600 million market opportunity. In 2011 ChromaDex initiated aggressive strategies to pursue each of these markets.

Since its launch, major supplement players have included pTeroPure in numerous products. CDXC also signed an agreement with Cott (NYSE: COT), a beverage giant whose products are sold in Costco, Wal-Mart, and Sam’s, to create products incorporating pTeroPure. Additionally, ChromaDex is now investigating pTeroPure, together with leading academic institutions, as a potential treatment for skin cancer as well as for its effects on cholesterol, oxidative stress, and blood pressure.

But CDXC’s growth potential doesn’t end with pTeroPure and BluScience. The Company has an array of additional proprietary products in its pipeline, among them anthocyanins, ‘superfruit’ antioxidant compounds that could aid in weight management and diabetes; and nicotinamide riboside, a more potent version of the B vitamin niacin. The Company plans to roll out both products next year using the same strategy that successfully launched pTeroPure.

ChromaDex is strongly positioned for growth in 2012 and beyond as the business transformation set in motion this year begins to bear fruit. For more information on CDXC, you can read the latest RedChip research update on the Company or view CDXC’s presentation from our recent virtual conference.

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.

While the short-term picture is murky, and results vary widely, the larger macro-environment is extremely clear: the vehicle penetration rate in China has a long way to go before it catches up to the rest of the developed world. Recent data shows China having a mere 70 vehicles per 1,000 inhabitants. This compares to 601 vehicles per 1,000 inhabitants in Italy, 551 vehicles per 1,000 inhabitants in Germany, and 450 vehicles per 1,000 inhabitants in the U.S.

One reason for the conflicting short-term results is China’s enormous swing from an environment favorable to vehicle sales to one that has become extremely restrictive. Government incentives for first-time car buyers, which drove record sales across China, expired at the end of 2010. The pendulum then swung the opposite direction in China’s largest auto market, Beijing, when city officials implemented a restrictive license plate lottery system aimed at curbing traffic congestion. As a result of the policy change, vehicle sales in Beijing dropped nearly 50% year-over-year in the first half of 2011.

One company navigating these challenges is Lentuo International (NYSE: LAS), the largest non-state-owned automobile retailer in Beijing.

LAS reacted swiftly to the policy changes, implementing a multifaceted growth strategy focused on geographic expansion and broadening its brand portfolio. The Company has nearly doubled its dealership network over the past six months, including three dealerships in markets outside of Beijing that are unaffected by the vehicle registration lottery.

Another area of focus for LAS is its growing repair and maintenance segment. Research giant IBISWorld has forecasted China’s auto repair industry to grow at double-digit rates over the next five years, reaching $9.1 billion in 2016. As a high-margin business for LAS, the Company has focused on implementing attractive incentive programs for its repair services to build its customer base. With the Company’s reputation for providing excellent customer service, this should result in a long-term positive impact on its bottom line.

Together, these new initiatives have enabled LAS to grow in the face of market headwinds. On the surface, this growth has been hidden to investors that haven’t taken the time to look deeper. This type of oversight creates an opportunity for those that do take the time.

Since the policy change, LAS has managed to grow revenues each quarter. On a quarter-on-quarter basis, revenues grew 9.3% in the second quarter and 14.4% in the third quarter. If LAS continues this type of growth in the fourth quarter, which can be expected by the Company’s fiscal guidance, it will be in the position to report nearly 40% year-over-year revenue growth in the first quarter of 2012. That’s the type of performance that will catch the attention of major investors.

Investors who take a position in LAS now have an incredible profit opportunity: a strong growth, NYSE-listed, shrewdly managed company with a Big 4 auditor, trading at an extremely low valuation. You can learn more about LAS by watching the Company’s presentation from last week’s RedChip virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may maintain 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 demand for nanotech is rapidly growing, particularly in markets such as healthcare, defense, cleantech and consumer goods. Researchers at Ohio State University recently discovered a way to deliver cancer-fighting biomolecules into leukemia cells, and earlier this month, an international research team revealed an artificial muscle with the strength of an electric motor and the flexibility of an elephant’s trunk. Lux Research forecasts that the global market for nanotechnology could reach $2.5 trillion by 2015.

One pure play in the nanotech space is Applied Nanotech Holdings, Inc. (OTCBB: APNT), a Texas-based research and commercialization company. APNT’s technologies have numerous applications across a range of high-growth markets. Reaching profitability and revenues of $8 million in 2010, APNT is entering a period of accelerated growth resulting from the introduction of a number of breakthrough products powered by its technology.

APNT has historically generated revenue by providing research and development services for corporations and government agencies. Among its clients are the National Institutes of Health and branches of the U.S. military. Through its research, the Company’s technology portfolio has ballooned to over 300 patents (150 issued and over 150 pending) in the areas of nanoelectronics, carbon nanotube (CNT) enhanced composites, thermal management materials, sensors, and electron emission technology. With leading manufacturers seeking to license APNT’s various technologies, the Company is negotiating lucrative royalty agreements, enabling it to share in the sales of end products developed by its clients.

The commercialization of APNT’s technology is exemplified by the Company’s partnership with Yonex, a Japanese sporting goods giant, which uses APNT’s Nanopreme carbon composite material in its golf clubs and badminton racquets. The use of Nanopreme results in products that are lighter, stronger and more resilient than conventional clubs and racquets. In the case of golf clubs, this results in greater distance, giving golfers the edge they constantly seek. Yonex plans to release additional products using Nanopreme in the future. APNT has begun receiving ongoing royalty payments from future sales of Yonex products that use the Company’s technologies.

Another of APNT’s products capitalizes on the cleantech boom. The Company has developed spray-on metallic inks for solar wafers, which could make solar power more affordable. The process reduces the thickness of solar panels, is more efficient than traditional application methods, and eliminates the risk of breakage during the application process, resulting in lower production costs. The Company was awarded $1.6 million from the U.S. Department of Energy last year to develop this technology. More information about APNT’s solar ink technology is available in this recent Fox 7 news feature on the Company.

Bottom-line, APNT has a high-profile customer base, a strong balance sheet, and a 51% top-line CAGR for the fiscal years 2006 to 2010. Due to low visibility in the capital markets, its stock currently trades below $0.50, offering considerable upside for investors. With nanotechnology poised to transform everything from medicine to mobile phones, and APNT entering a phase of rapid commercialization, now is an excellent time to begin building a position in this stock.

To learn more about this exciting story, you can view an archived recording of the Company’s recent presentation at our virtual conference by clicking here.

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.

ChromaDex Corp. (OTC BB: CDXC), a California-based natural products company, is an undiscovered growth play in this booming market. While CDXC built its business supplying phytochemicals (chemicals from botanicals) and laboratory services to big-name clients such as Pfizer (NYSE: PFE), Herbalife (NYSE: HLF), Pepsico (NYSE: PEP) and Kraft Foods (NYSE: KFT), the Company is now shifting its focus to the consumer market with the introduction of its first retail product line, BluScience.

BluScience, which launched this month in GNC (NYSE: GNC) stores and online at GNC.com, was developed from the Company’s novel ingredient pTeroPure, which was awarded Frost & Sullivan’s “Most Promising Ingredient of the Year” in March. Based on an antioxidant compound found in blueberries, pTeroPure has the potential to positively impact heart health, improve cognitive function, and promote healthy aging.

pTeroPure, already licensed by a number of key players in the nutraceuticals industry, has potential applications in foods, beverages, cosmetics and pharmaceuticals. In June, the Company signed an agreement with Cott Beverages (NYSE: COT), the world’s largest private-label beverage manufacturer, to jointly develop a proprietary ingredient blend containing pTeroPure, and more recently signed an agreement with Organic Revolution Worldwide to incorporate pTeroPure into the Dodo Organics line of organic foods. pTeroPure could even help fight skin cancer. It’s been projected that the total market opportunity for pTeroPure could reach as much as $500 million over the next five years.

Led by industry veterans, the Company is well-positioned to capitalize on its first retail product line in a global nutraceutical market that is anticipated to reach $243 billion by 2015. With a massive market opportunity in place, CDXC offers investors a low-risk, high-reward opportunity to invest in a company that is on a rapid growth trajectory.

While CDXC is not yet widely followed by major investors, it’s unlikely the Company will remain under the radar for much longer. We believe the only thing holding CDXC back from uplisting to a major exchange is its share price; all other exchange requirements seem to have been met. To overcome this last hurdle the Company recently proposed a reverse stock split to its shareholders. Once approved and the Company begins trading on a major exchange, the stock will show up on the radar of many more investors, helping to provide increased liquidity and a dramatically improved valuation.

To learn more about ChromaDex, please watch this video profile and view the Company’s presentation from our August virtual conference.

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.

Investors seeking to profit from the nutraceutical boom would be wise to consider ChromaDex Corp. (OTC BB: CDXC), a California-based natural products company. CDXC supplies natural chemicals, botanicals and laboratory services to clients such as the U.S. Food and Drug Administration, Cargill, Nestle, Pfizer (NYSE: PFE) and Kraft Foods (NYSE: KFT). While this segment of its business is expected to achieve robust growth over the next five years, the real growth driver for CDXC is its proprietary technology, pTeroPure, based on pterostilbene, an antioxidant compound found in blueberries. In laboratory studies, pterostilbene has demonstrated numerous benefits, including the ability to positively impact heart health, improve cognitive function and promote healthy aging.

Understanding the multitude of potential applications of pTeroPure, including its use in nutritional supplements, foods and beverages, cosmetics and pharmaceuticals, Frost & Sullivan named pTeroPure the 2010 North American Health Ingredients “Most Promising Ingredient of the Year.” CDXC projects that the total market opportunity for pTeroPure could reach $465 million to $600 million over the next five years.

CDXC recently signed an agreement with Cott Beverages (NYSE: COT), the world’s largest private-label beverage manufacturer, to jointly develop a proprietary ingredient blend containing pTeroPure. Since its launch less than a year ago, pTeroPure has been incorporated into more than 20 nutraceutical products. Although these achievements are impressive on their own, an even bigger breakthrough lies ahead: the upcoming nationwide launch of the Company’s BluScience line of products in 2,600 GNC (NYSE: GNC) stores and online at GNC.com. The BluScience line features four pTeroPure-based supplements for heart health, weight management, healthy aging and energy.  

In addition to capitalizing upon its pTeroPure opportunity, CDXC plans to expand its IP portfolio and introduce additional proprietary products into the market. The Company has several products in development and recently licensed the exclusive worldwide rights to a novel manufacturing process for nicotinamide riboside (NR), a recently discovered next-generation B vitamin, from Cornell University. NR has shown promise in laboratory tests for improving cardiovascular health, glucose levels, and anti-aging and cognitive functions. With this technology, CDXC could become the first company to market NR as a dietary ingredient.

CDXC insiders are well-aware of the growth potential that lies directly ahead and have purchased nearly 1.1 million shares of Company stock over the past year.  It’s also worth noting that Dr. Phillip Frost, a member of the Forbes 400 and Vice Chairman of Teva Pharmaceuticals (NASDAQ: TEVA), owns more than a 10% stake in CDXC. The fact that this accomplished corporate executive and investor has such a sizable position in CDXC, as do Company insiders, suggests a strong vote of confidence in the ability of CDXC to generate significant shareholder value improvement.

CDXC shares currently trade for less than $2, an unbelievable bargain considering the Company’s strong growth potential amid the surging global demand for nutraceuticals. With a potential blockbuster in pTeroPure, and a national product launch just around the corner, it’s only a matter of time before CDXC’s share price catches up to the Company’s true value.

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.

Given the benchmark status of the Russell indexes, including the Russell 2000 and Microcap indexes, it’s easy to understand why investors so eagerly anticipate the reconstitution. Approximately $4 trillion in assets are currently benchmarked to Russell indexes, more than all other U.S. equity indexes combined. Jim Polisson, managing director of Russell’s global ETF business, recently noted that $84 billion in assets are tied to exchange-traded funds (ETFs) that use Russell indexes.

A preliminary list of additions and deletions for the 2011 Russell indexes was posted June 10 and updated June 17. A total of 186 companies were added to this year’s Russell 3000, which includes both the Russell 1000, the 1000 largest public companies in the U.S., and the Russell 2000, the benchmark small-cap index. The largest number of additions for these indexes comes from the healthcare, financial services and technology sectors. China stocks account for a smaller percentage of this year’s Russell indexes compared to previous years, as the recent selloff in the sector has pulled down the market cap of many U.S.-listed Chinese companies. Despite a challenging market environment, several Chinese companies joined the Russell indexes this year, including Funtalk China Holdings Ltd. (NASDAQ: FTLK) and Renren Inc. (NYSE: RENN), known as the “Chinese Facebook.”

While the Russell 2000 specific reconstitution list has not yet been published, based on market-cap metrics of the Russell 3000 changes, below are a few notable additions to the 2011 index:

Hyperdynamics Corp. (NYSE Amex: HDY): HDY is an independent oil and gas company conducting offshore exploration in the Republic of New Guinea in West Africa. The company has signed drilling, equipment and services contracts in preparation for the drilling of its first exploration well, which is expected to commence during the fourth quarter of 2011. With the rapid development of emerging nations such as China, global demand for oil and gas is expected to outpace supply over the next few years, creating a tremendous need for the resources of HDY and other U.S.-based oil and gas companies such as Cross Border Resources, Inc. (OTC QX: XBOR), which owns 31,000 net acres within the resource-rich Permian Basin; and Sentry Petroleum Ltd. (OTC BB: SPLM), which recently began drilling for coal seam gas at its ATP 862 permit in Queensland, Australia.

Kronos Worldwide Inc. (NYSE: KRO): Similar to China Chemical Corp. (OTC BB: CHCC), KRO manufactures chemicals that are used in a wide variety of industrial and consumer applications. KRO’s primary products are titanium dioxide pigments, which the company markets in North America and Europe. Titanium dioxide is used to add whiteness and opacity to products such as paint and plastics. Prices for titanium dioxide are rebounding from the global recession due to rising demand for cars and other consumer goods, positioning KRO for continued sales growth and improved profitability.

ZAGG Inc. (NASDAQ: ZAGG): ZAGG, a high-growth stock first discovered by RedChip in mid-2008, manufactures protective coverings, audio accessories and power solutions for consumer electronics and handheld devices. Its products are sold in Best Buy (NYSE: BBY) stores, and ZAGG also has an exclusive distribution deal with Logitech International (NASDAQ: LOGI) for the ZAGGmate, an iPad case with a built-in keyboard. For the first quarter of 2011, ZAGG grew revenues 207% year-over-year to $27 million on strong sales of the ZAGGmate. Net income increased 312% to $3.3 million.

These three companies represent just a handful of the exciting additions to the Russell indexes this year. Companies that join the Russell indexes can benefit from increased visibility to investors as well as passive investment from funds that track the various benchmark indices. With nearly 60% of institutional funds benchmarked to Russell indexes, expect heavy trading activity after the final changes for the year are announced this Friday.

Disclosure: XBOR, SPLM and CHCC 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.

How good is the opportunity at these levels? Considering the Company has a net cash position of $83.2 million and a market cap of only $133.6 million as of the writing of this post, the opportunity is significant. Rarely will you find the opportunity to buy shares in a Big Board company, with a Big Four auditor, at these types of prices. Just look at the peers of LAS: CarMax, Inc. (NYSE: KMX), AutoNation, Inc. (NYSE: AN), Penske Automotive Group, Inc. (NYSE: PAG) and America’s Car-Mart, Inc. (NASDAQ: CRMT), none of which have positive net cash positions; in fact, each of these companies has a substantial negative net cash position, yet they are all trading for double-digit P/E multiples.

Why is a positive net cash position important? If a company is trading at a positive net cash position, it means that you are essentially purchasing the actual business of the company for a much lower price. For example, in the case of LAS, you are basically purchasing the Company’s business for $50.4 million right now (subtracting the net cash from the current market cap). That’s right; a business that did $24.5 million in net income in the last fiscal year can ultimately be purchased today for $50.4 million.

Additionally, a company with a positive net cash position has more funds available to expand its business without the need to dilute shareholders or add debt. This means LAS is well positioned to execute on its aggressive growth strategy for the fiscal year.

The Company, in its first quarter earnings release, just disclosed the completion of a brand new FAW-VW dealership in Beijing that will begin to contribute revenues this week. This is the first of three greenfield, or brand-new construction from the ground up, dealerships that LAS intends to add to its network in the current fiscal year.  In addition to these projects, LAS also has seven planned acquisition targets of existing mid-line and luxury brand dealerships, the first of which, a leading Honda dealership in the fast-growing lucrative market of Tianjin, the Company anticipates closing in the coming weeks.

So we have an NYSE-listed company, with a Big Four auditor, leading its industry in the fastest-growing market in the world, trading for a steep discount to its peer group, which can be bought for essentially 2x its trailing earnings when factoring in its net cash position. Investors should consider themselves lucky to have a second chance to get this stock at these ridiculously low levels.

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.

Documented footage of ONBI’s Assets and Operations in China, Interviews with Key China Personnel 

Click here to view video.

ONBI Company Profile 

About ONBI
ONE Bio, Corp. (“ONE”) (OTCBB: ONBI) (http://www.onehcorp.com/), headquartered in Miami, FL, is an innovative company utilizing patented green process manufacturing to produce raw chemicals and herbal extracts, natural supplements and organic products. ONE is focused on the Asia-Pacific region and the United States. Key products include widely recognized Solanesol, CoQ10, Resveratrol and 5-HTP, organic fertilizers, and organic bamboo health food and beverages. ONE has experienced solid organic growth driven by a robust demand for its products in China, Japan and the United States.

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

Lentuo International Inc. (NYSE: LAS), an IPO led by Cowen and Co., HSBC and Macquarie, debuted 6 months ago and dropped precipitously from its IPO price of $8.00, landing at $2.73 in early May. This despite record fiscal year performance in 2010 and a Big Four auditor: Ernst & Young.

RedChip entered the picture on May 5th as the Company’s new investor relations firm and immediately deployed its robust platform, including: airing of live interviews with LAS management on RedChip Small-Cap Radio™, an on-site video interview from LAS headquarters in Beijing, social media marketing,  outbound institutional and retail investor introductions, and a five-city road-show in San Francisco, Los Angeles, San Diego, New York and Chicago.

This comprehensive initial campaign resulted in the stock gaining more than 100% appreciation with 10-day average daily volume increasing 250% since LAS hired RedChip just three weeks ago.

RedChip will be publishing research on the Company in the coming weeks and is pleased to have LAS presenting at our upcoming virtual conference (June 22nd and 23rd), which typically draws up to 1,000 retail and institutional investors. 

With a history spanning nearly two decades and an international presence, with offices in Orlando, Beijing, Seoul and Paris, RedChip’s long list of top-performing stocks continues to grow. Today we are hosting an investor and analyst day for longtime client L & L Energy (NASDAQ: LLEN) at the Princeton Club in New York City, with over 50 institutional investors expected to attend. In the coming days, we will also be releasing a series of on-site video documentaries of several of our China clients, including: Longwei Petroleum Investment Holding (NYSE Amex: LPH), China Bilingual Technology & Education Group (OTCBB: CBLY), ONE Bio (OTCBB: ONBI) and Shiner International (NASDAQ: BEST). 

An active advocate for Chinese small-caps, Dave Gentry, President of RedChip Companies, appeared on FOX Business News with Charles Payne on May 6th to discuss the challenges facing reverse merger companies in the space. To learn more about how RedChip can help your company, take a moment to read our references, some of the best in the business, and then give us a call.

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.

Click here to watch our on-site interview with Lentuo’s Founder and Chairman, Hetong Guo, and its Chief Financial Officer, Ping Yu, at the Company’s Beijing headquarters.

Formerly known as the “kingdom of bicycles,” China is now a nation of automobiles. An emerging middle class and influx of wealth into China have pushed China’s automobile demand to record levels in recent years: in fact, China surpassed the U.S. to become the world’s largest automobile market in 2009, with 13.6 million vehicles sold, an astonishing year-over-year increase of 46%.

Even after the implementation of new sales taxes and restrictions on vehicle purchases in Beijing, passenger vehicle sales still increased 9.1% year-over-year during the first quarter of 2011, and foreign automakers such as Volkswagen and Daimler reported robust 1Q11 revenue growth driven by demand in China. Not only is China expected to remain the world’s #1 car market in 2011 and beyond, industry experts are also forecasting that China will account for half of all new-car sales worldwide by 2020.

It’s important to note that China currently has only 58 cars per 1,000 people. Although this number is up from 36 per 1,000 people in 2009, it’s still extremely low compared to nations such as the U.S. and Japan. China’s low vehicle penetration rate, combined with its fast-paced urban development, adds up to tremendous growth opportunities for car dealerships such as Lentuo International Inc. (NYSE: LAS), the largest non-state-owned automobile retailer in Beijing.

LAS operates six franchise dealerships, ten automobile showrooms, an automobile repair shop and a car leasing company. Having just completed its IPO in December, LAS has yet to be discovered by the market. Trading at a steep discount to its peers, LAS presents fast-moving investors an opportunity to profit greatly from China’s exploding demand for automobiles.

LAS has captured a 3% market share of Beijing, China’s largest car market, while achieving exceptional sales and earnings growth. For the fiscal year ended December 31, 2010, LAS’s revenues grew by 43.7% year-over-year to $509.6 million and its net income increased 25.4% to $24.5 million, or $1.14 per ADS.

With the market still concerned over the veracity of China small-cap financials, it’s important to note that LAS’s independent auditor is Ernst & Young Global Limited, one of the Big Four accounting firms. Additionally, the Company doesn’t have the stigma of being a reverse-merger; it was an IPO led by Cowen and Company, LLC and HSBC Securities (USA) Inc., who acted as joint book-runners with Macquarie Capital (USA) Inc. acting as a co-manager on the deal. These highly regarded firms lend additional credibility to a company that has already distinguished itself as a reputable player in China’s auto dealership market.

Over its 16-year operating history, LAS has won numerous recognitions for the quality of its customer service, which will be a strong asset as it grows the high-margin service segment of its business. With a solid reputation and well-recognized brand name, LAS is well positioned to execute the next stage of its growth strategy: expanding into China’s second- and third-tier cities, which are expected to drive the bulk of China’s car demand in the years ahead. The Company plans to add 10 stores in 2011, which would bring its total number of dealerships to 16.

Comparable public companies such as CarMax Inc. (NYSE: KMX) and AutoNation, Inc. (NYSE: AN) trade on average at a 15x P/E, compared to a P/E of less than 3 for LAS. If LAS traded at only a P/E of 10, its stock would be $11.40, a nearly 300% gain from current levels. With its profitable operating history and support from firms such as Cowen and HSBC, it’s unlikely that LAS will remain undiscovered for long.

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.