SOURCE: Stock Market Alerts

May 25, 2010 08:38 ET

Market Alert: China America Holdings -- May 25, 2010

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Stock Market Alerts LLC.

MIAMI, FL--(Marketwire - May 25, 2010) -  Stock Market Alerts' performance stock list includes: China America Holdings (OTCBB: CAAH), Ford Motor Company (NYSE: F), Baidu, Inc. (NASDAQ: BIDU) and Citi (NYSE: C).

Yesterday China America Holdings (OTCBB: CAAH) issued a press release announcing the Company's financial results for the second quarter and first six months of fiscal 2010 ended March 31, 2010.

For the second quarter of fiscal 2010 total revenues were $8.7 million, up 39% from the $6.2 million recorded in the six months ended March 31, 2009. For the first six months of fiscal 2010 we recorded revenues of $19.8 million with a net loss that narrowed to ($6,000), up from revenues of $14.1 million and a net loss of ($669,000) in the six months ended March 31, 2009. We recorded a net loss of ($189,000) in the second quarter of fiscal 2010 as compared to ($207,000) in the three months ended March 31, 2009. This resulted in EPS of ($0.00) per diluted and basic share in both periods.

The improvement in net revenue results in the second quarter of fiscal 2010 was largely driven by our aggressive pricing strategy yielding additional orders from new and existing customers. As a result of this pricing strategy gross margins were slightly lower at 6.6% as compared to 7.8% in the three months ended March 31, 2009.

At March 31, 2010, working capital was $9.2 million as compared to $8.6 million at September 30, 2009. Total current assets at March 31, 2010 were $16.2 million as compared to $13.9 million at September 30, 2009.

Commenting on the second quarter, Mr. Shaoyin Wang, CEO of China America Holdings, stated, "We continue to gain sales momentum through the first six months of fiscal 2010. Our aggressive pricing strategy continues to yield positive top line results. We gained additional customers at the expense of a small decrease in gross margins. We are confident that our business will continue to grow as the global refrigerant market is becoming increasingly stronger and margins will improve as China begins its mandated transition into more environmentally friendly products. We look forward to a stronger performance in the second half of fiscal 2010 as we work diligently to continue to improve our operating results."

The stock closed yesterday at around Two cents a share.

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Ford Motor Company (NYSE: F) down 2.2% on 91 million shares traded.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents.

Baidu, Inc. (NASDAQ: BIDU) up 0.2% on 10.6 million shares traded.

Baidu, Inc. is the leading Chinese language Internet search provider.

Citi (NYSE: C) up 0.8% on 843.9 million shares traded.

Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries.

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