MZ will assist Longhai with communicating its corporate, financial and investor developments to shareholders and investors, while building a strong public brand and investor base. Ted Haberfield, Scott Powell, Derek Gradwell, and the MZ Group team will be advising the Company in all facets of corporate and financial communications.

“We look forward to our partnership with MZ Group,” said Steven Ross, Executive Vice President of Longhai. “As we expand our corporate branding and investor relations efforts around the world, we believe MZ Group provides the global reach and an established track record that will help us be more successful. Their strong relationships with retail and institutional investors in Asia and North America in particular will help us tell the Longhai Steel story to more investors.”

“Longhai offers investors a tremendous combination of rapid growth at a compellling valuation,” said Ted Haberfield, President of MZ North America. “We are firm believers in the secular growth opportunities in global natural resources, particularly in emerging markets. The Company’s investments over the past several years have positioned Longhai to realize the benefits in 2012 and beyond. We look forward to working with management to help articulate the exciting developments to investors in the U.S. and China.”

About Longhai Steel Inc.

Longhai Steel is a leading producer of high-quality steel wire in eastern China, with annual capacity of 1.5 million metric tons. Longhai’s wire is manufactured into screws, nails, and wire mesh used for fencing and to reinforce concrete. Longhai recently expanded its production facility to include specialized applications such as steel wire rope, steel strand, steel belted radial tires, and steel welding rod. Demand is based on spending in the construction, automotive and infrastructure industries in China. Company website: www.longhaisteelinc.com .

Safe harbor statement

Certain statements in this news release are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “estimates,” “expect,” “future,” “intends,” “may,” “plans,” “should,” “will,” and similar statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding China’s economic growth, general industry conditions including local supply and price of wire, environmental risks, Longhai’s business or growth strategy, Longhai’s ability to achieve the new facility’s production expectation; Longhai’s ability to develop and produce higher margin products that achieve market acceptance; the success of Longhai’s investments, risks, and uncertainties regarding fluctuations in earnings, its ability to sustain its previous levels of profitability including its ability to manage growth, intense competition, wage increases in China, its ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, its ability to successfully complete and integrate potential acquisitions, withdrawal of governmental financial incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China. Although Longhai believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Although these expectations and the factors influencing them will likely change, we are under no obligation to inform you if they do. These and additional risks that could affect Longhai’s future operating and financial results are more fully described in its filings with the U.S. Securities and Exchange Commission. These filings are available at www.sec.gov .

Longhai may, from time to time, make additional written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q, and 8-K, in its annual report to shareholders, in news releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Longhai does not undertake to update any forward-looking statements that may be made from time to time by or on its behalf, except as required by law.

Longhai’s 200,000 square meter facility is located in Xingtai City, right in the heart of the steel production district in Hebei Province, China.  Its steel wire is sold domestically and used primarily in the construction industry as the steel is processed into screws, nails, wire mesh for concrete and fencing.  Business is booming for Longhai with record production and sales reported in the fourth quarter of 2011.  During the quarter, the company’s steel wire output was 293,862 Metric Tons, an increase of 23% from the year prior quarter.  Steel wire sales for the quarter increased by 30% to 335,229 Metric Tons in Q4 2011 as compared to Q4 2010.

Longhai Steel is a component of the vertically integrated Longhai Steel Group, which offers them significant advantages over competitors.  For starters, the steel billet that gets processed by Longhai Steel into steel wire comes from across the street at its parent company.  This translates to virtually no shipping costs for LGHS that competitors must shoulder as an expense.  Additionally, the steel is literally still steaming from the extreme heat of processing by Longhai Steel Group when it is delivered to LGHS, translating to lower manufacturing costs and less energy use as a result of not having to heat the steel as much as normally would be required.

LGHS has just opened a second, state-of-the-art production line next door to its original facility that, once fully ramped, will boost its production by an additional 67 percent.  This new line will also open the door to additional clientele as it has the ability to produce alloy steel, cold forging steel, welding rods and steel strands for applications such as wire rope and steel belted radial tires.  LGHS is again a beneficiary of being part of the Longhai Steel Group who is leasing the facility to LGHS for a minimal monthly payment.  Plans for a third production line, targeted for 2013, are already in the works.

Longhai posts the type of numbers that are rarely – if ever – produced by an OTC listed company.  Final figures from 2011, which will reflect sales increases from the fourth quarter, have not been released to date, but trailing twelve month (ttm) figures will make most OTC investors’ jaws drop.  As of Q3 2011, ttm revenue tallied a whopping $555.31 million for LGHS.  Net income equaled $9.32 million.  Diluted Earnings Per Share for the ttm is a stellar $0.93.  If those numbers aren’t impressive enough…the company has NO DEBT.

Taking a moment to separate the wheat from the chaff, Longhai outstrips plenty of its big board competitors.  China Gerui Advanced Metals (NASDAQ:CHOP) has a ttm revenue that equals $315.98 million.  Sutor Technology Group Ltd.’s (NASDAQ:SUTR) ttm revenue rings in at $459.95 million.  Industry giant General Steel Holdings, Inc. (NYSE:GSI) has a ttm revenue of $2.15 billion, but its massive debt load taints the picture for GSI.

A very commonly used analysis of industry peers is the P/E ratio.  Juxtaposing companies via this metric show CHOP, SUTR and GSI to have P/E ratios of 4.23:1, 3.29:1 and 61.11:1, respectively, as compared to LGHS’s tiny ratio of 1.08:1.  By that standard, the company is clearly undervalued.

By virtually all standard measures, LGHS should be a stalwart in relation to peers.  Take a look at a few of these other stats:

The sales increases in Q4 will further bolster Longhai’s balance sheet.  Factoring in a second line running full bore and the company could reach $1 billion in revenue in 2012.  With a miniscule number of outstanding shares (10 million), LGHS is only commanding a $10 million market cap; a ridiculously low amount for a company of its capacities.  It’s a head-scratcher to see a company with a net income that nearly equals their market cap.  It may be ignored at the moment, but a company such as Longhai Steel Inc. will not fly under the radar forever when it is approaching billion-dollar revenue figures, carrying no debt and a price tag of only $1 per share.  Frankly, it’s a bit amazing that it has for this long.

To learn more about Longhai Steel, please see the following resources:

Company Website

Investor Presentation

The company’s unique business model involves receiving a combination of cash and equity in exchange for helping these companies. Depending on the amounts of each, the firm has traditionally issued a portion of the stock received as a dividend to its own shareholders, while maintaining the balance on its books as an asset or selling it to generate revenues.

EastBridge Signs Fizza in December 2010

EastBridge entered into an agreement in December of 2010 to assist Fizza LLC in raising bridge capital of $300,000 in exchange for a combination of cash and equity. Since then, the agreement has been expanded to help the company identify legal counsel, financial advisors and capital to raise $2 million in financing to expand its business.

Fizza has developed a nutritious sparkling dairy beverage that contains all the qualitative nutrients of milk and the fun of soda. Available in orange, strawberry, apple and cola, the fat and lactose free beverages have no artificial sweeteners but all the qualitative nutrients of milk. The company is hoping to position these in both retail and educational settings.

EastBridge Signs Air Medical in October 2011

EastBridge entered into an agreement in October of 2011 to assist International Air Medical Services Inc. (IAMS) with locating legal counsel, financial advisors and capital to complete a capital raise of up to $3 million. While no financial details were disclosed yet, investors expect to see some details in the company’s upcoming SEC filings.

After receiving $176,000 in financing and completing 206 missions in its first year, the company’s predecessor (Native Air) grew to conduct about 6,000 missions per year six years later and eventually sold for $54 million. Management is now refocusing on the long range transportation segment that accounts for about 23% of emergency air medical demand.

Additional Clients in the U.S. and Abroad

As of September 2011, EastBridge was providing consulting services to eight clients to assist them with the auditing and legal processes to become public companies in the United States and become listed on a U.S. stock exchange, in addition to the aforementioned agreements. And it’s also working with Cambrium Learning (NASDAQ: ABCD) to identify a JV partner in China.

Combined, these factors make EastBridge a stock worth watching for early stage investors. For more information on the company, please see the following resources:

• Company Website
• Recent SEC Filings

Fizza has developed a nutritious sparkling dairy beverage that contains all the qualitative nutrients of milk and the fun of soda. Available in orange, strawberry, apple and cola, the fat and lactose free beverages have no artificial sweeteners but all the qualitative nutrients of milk. If successful, EastBridge’s equity received from this agreement could pay big dividends.

EastBridge Signs Agreement with Fizza

EastBridge executed an agreement in late 2010 to help Fizza raise up to $3,000,000 in funding to produce its products and bring them to market in a timely fashion, according to an 8-K filing with the SEC. Under the terms of the agreement, EastBridge will receive a combination of cash and equity that was not disclosed in the agreement.

This arrangement enables EastBridge to realize some income upfront in addition to realizing back end equity that can appreciate over the long-term. In the past, the company has issued some of this equity to its own shareholders in the form of a dividend. The rest is either reported on the balance sheet as an asset or sold to generate additional revenues.

Providing Healthy Alternatives to Soft Drinks

Obesity is one of the largest threats to child health, according to many doctors. While there are many causes of childhood obesity, excessive consumption of sugar-sweetened drinks has been linked to the disease by several studies. As a result, many school cafeterias have banned soft drinks from their menus and instead offer only healthier alternatives.

Fizza has been approved by the USDA for sale in school cafeterias and is often times the only carbonated beverage available. With a potential $300 million market in schools, this represents a significant addition to its $1.1 billion potential in retail stores. And in total, these figures represent just 0.9% of the $153 billion liquid refreshment market.

Another Great Reason to Invest in EastBridge

EastBridge offers investors a unique opportunity to invest in a diversified portfolio of emerging public companies. With clients ranging from Chinese education companies to U.S. companies seeking joint ventures, the company is building significant equity with a track record of generating shareholder value through equity dividends.

For more information on EastBridge, please see the following resources:

• Company Website
• Latest SEC Filings
• Fizza Presentation

Cambrium Looks to Partner in China

With its expertise in China’s growing marketplace, EastBridge is uniquely positioned to offer U.S. companies exposure to emerging economies. In May of 2011, Cambrium Learning entered into a consulting agreement with the EastBridge to seek out opportunities in China for joint ventures, partnerships and merger & acquisition (M&A) work.

Under the 12-month agreement, EastBridge will receive a cash fee of 10% of the total revenue derived from each business venture resulting from an introduction by the company, paid quarterly over a maximum of three years and with a $50,000 non-refundable advance paid at closing, according to an 8-K filing with the SEC.

Mr. Keith Wong, CEO of EastBridge, commented, “Cambium is a great company with a rich suite of products for online applications. Many of their K-12 products can be adapted to students in China, which has a total elementary, junior and high school student population of more than 200 million. We are very excited to be retained as a consultant to help them seek out opportunities in China for joint ventures, partnerships and merger & acquisition (M&A) work. We have substantial experience in China to help our clients achieve their expansionary goals.”

JV Business Model Could Pay Off Long-term

EastBridge’s primary business of helping emerging companies obtain a listing on U.S. stock exchanges involves lengthy timeframes and approvals. In contrast, the joint venture model is a relatively straightforward private business transaction. And since the payout is tied to revenues, it provides shareholders with a virtual equity stake in the company.

Currently, the majority of the company’s 14 clients are utilizing other services, but the joint venture model could be expanded moving forward. After all, the slowdown in the U.S. and E.U.  is forcing many companies to look to emerging markets in Asia for growth potential. These agreements would provide faster revenues with economics similar to its standard services.

For more information about EastBridge, please see the following resources:

• Company Website
• Latest SEC Filings

The aircraft bound for Shanghai with 245 people on board took off last week apparently after being told to stay on the runway and then to abort take off at Osaka airport, the BBC reported.

According to Kyodo news agency, air traffic controllers instructed the aircraft’s pilots to halt on the runway instead the Airbus A330 took to the skies and further ignored instructions to abort.

Despite the misunderstanding the plane took off without incident and later landed safely in Shanghai.

Japan’s Transport Minister said that even though the aircraft had sufficient room from any other nearby aircraft, the pilot may have broken the country’s aviation rules and regulations.

An employee at China Civil Aviation Administration apparently told China Daily “We’ve written to our Japanese counterparts asking for materials to help us look into the case.”

On the airlines certified Sina Weibo page the Airline said it will “operate according to laws and regulations, and further regulate our flight crews English communications”, to guarantee flight safety.

Under the International Civil Aviation Organisation pilots and air traffic controllers have to meet a certain standard and understanding of the English language.

China’s Enormous Education Market

China has approximately 400 million students in its educational system and a 99% attendance rate to primary school. With more than 70,000 private schools opening since the 1980s and significantly higher spending on education as a percentage of income than the United States, the country has become a great opportunity for for-profit educational institutions.

The growth in the market can be clearly seen in the results of some larger companies in the space. For instance, the industry’s largest publicly traded company, New Oriental Education, saw revenues that grew from $132 million to more than $557 million between 2007 and 2011, while its net income more than tripled from 20 cents to 65 cents per share.

Cottage industries surrounding this vast educational industry are also rapidly growing. For example, after school programs are far more popular in China than the U.S., while vocational schools have been soaring in popularity as a quick way to gain an education and find a job without spending years in a traditional university.

Wonder and Tsingda Offer Great Exposure

EastBridge Investment Group owns approximately 3.4 million shares of Wonder Education and more than 2 million shares of Tsingda Education, according to regulatory filings made with the SEC. These two companies represent strong and rapidly growing companies within the booming for-profit education market in China, making them very valuable for EBIG shareholders.

Tsingda Education is a leading provider of online educational services in China, offering classes through pre-recorded lessons and in real-time via its virtual internet classroom. As of December of last year, the company operated 2,346 learning centers across the country, including 21 company-owned and 2,325 franchised locations.

Wonder Education has been named one of China’s ten major brands in computer education for several years by the Ministry of Information Industry, the Ministry of Labor and Social Security and Computer World. The company’s seven vocational schools have relationships with more than 20 provinces and municipalities and serve more than 12,000 students.

A Great Investment Opportunity

EastBridge Investment Group unlocks value for shareholders in several ways. First, the company offers equity dividends to its shareholders. Second, the remaining equity is held on its books as a valuable liquid asset. And finally, any stock that is sold is booked as revenues and net income that help drive growth moving forward.

Meanwhile, earnings multiples for China’s education sector continue to look strong with several recent buyouts. The average P/E in the education industry stands at about 22x, which is the highest in the country and compares favorable to the 16.3x average. And with an average market capitalization of $621.8 million, it’s also one of the most valuable industries.

The company’s stakes in Tsingda Education and Wonder Education could unlock significant value in its shares. Despite some market issues during the past few months,, the company is moving forward towards listing Tsingda and Wonder on a U.S. exchange, while both companies look for opportunities  to grow its business. With these near-term catalysts in mind, investors may want to take a closer look at EastBridge.

To learn more about EastBridge, see the following links:

• Company Website
• Recent SEC Filings

AREM Pacific Business Overview

AREM Pacific Corporation began as an Australian winery and small marine leisure boat manufacturer in China, but has since become the first U.S. company setting up exclusive air-water-land resort and convention centers in China. Bringing together houseboats, aerochutes, seaplanes, and water recreation facilities, the company plans on offering a wide range of activities in many locations around six premium lakes and two ocean front locations. AREM Pacific offers a diversified investment opportunity in hotels, food & beverage, and other hospitality elements.

Recent financial results include:

• Revenue 2008 :  $103,754  ,  Net Income: ($7,825) (audited)
• Revenue 2009 :  $121548,  Net Income: $4,111 (audited)
• Revenue 2010 : $100,821, Net Income: $4,437 (audited)

AREM Pacific Market Overview

China is the world’s third most visited country in the world. The number of overseas tourists was 55.98 million in 2010. As for the domestic demand, there are over 100 million Chinese whose incomes are commensurate with the incomes of the developed countries; yet, they have not had an opportunity to access these high end integrated resort facilities, because these facilities do not exist thus far in China. As a result, AREM believe there is a strong pent up demand.

AREM Pacific’s highlights within this market include:

• Signed several master water front leaseholds at below market rates
• When finished, these will be show case air-water-land resort & convention centers in China
• Subleasing the land to the hospitality operators, who will build and operate their own sites
• Low capital requirement and high ROI in a short time

AREM Pacific’s Recent Achievements

• Signed a 40-year master leasehold on a lake front shore line with a total land area of 285 acres in Hunan, China. The lease cost is at a substantial discount to the market price, and the land will be developed into an air-water-land resort & convention center. A prominent hotel has already signed a sublease to use a parcel of the land to build and run a hotel on site for retail customers. AREM will put in a convention and resort center for conventioneers, together with private villas on the site.
• Master leaseholds on five lakes and two ocean front land properties in China are being negotiated. AREM will also sublease these spaces out to the hospitality operators.
• Exclusive distribution agreements in China for the aerochutes, sky cars, private hydro planes, houseboats and yachts from Australia have been signed. These vendors are ready to provide equipment at substantially reduced costs to AREM.

AREM Pacific Competitive Overview

AREM Pacific is the first and only company that introduces an integrated air-water-land leisure and provides high end hospitality services to China. These services include holiday resorts, conference / exhibition centers, marine facilities offering houseboats, seaplanes, hot air balloons, skycars, aerochutes and private planes.

Similar listed companies include:

• Jinling Hotel Corporation Ltd. Nanjing provides guest rooms, restaurants and bars, meeting and events services, health and recreation services.
• New Taohuayuan Culture Tourism Co., Ltd. owns and operates the Taohuayuan Inn hotel and resort, Xi’an offers hotel rooms only.
• Shanghai Jin Jiang International Hotels Development Co. Ltd. is principally engaged in management and operation of hotels and restaurants.

About EastBridge Investment Group

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in the education, internet, energy, mining and service sectors. To learn more about EastBridge Investment Group go to our web site: www.EbigCorp.com. To receive EBIG’s email alert, send a blank email to info@EbigCorp.com. Join us on Facebook at the following link: http://www.facebook.com/ebigcorp.

The company generates income through a combination of cash fees and equity stakes in its clients. By taking these clients public on U.S. stock exchanges, the firm generates significant long-term and short-term value. Typically, the company will divest part of its equity stakes via an equity dividend to its own shareholders, sell a portion to cover its operations and keep some on its balance sheet as an asset.

Several Clients Move Closer to an IPO

EastBridge was forced to delay the initial public offerings of several clients due to poor market conditions. Despite their strong financial performance, the companies opted to delay their offerings in hopes of obtaining a higher earnings multiple on their stock. These delays may have caused some concerns for EBIG shareholders, but in the long-run, they were likely the best decision.

Now, the wait appears to be drawing to a close. Tsingda Education engaged a new underwriter for its IPO in July of this year that pegged its value at about $4.56 per share. Just a month later, EastBridge issued a dividend of that stock to shareholders at a ratio of 486-to-1. Other clients like Dwarf Technologies also recently registered shares with the SEC in a preliminary step towards an IPO.

Consulting Clients Drive Near-term Income

EastBridge has also started signing more consulting clients that could help generate near-term income. In June, the company succeeded in assisting FIZZA LLC in obtaining $200,000 in seed capital that it needed to bring its first product to market. Meanwhile, the company is working with U.S.-based Cambrium Learning to expand by forming joint ventures with education companies in China.

These companies typically make up-front payments with an equity kicker in a transaction that generates short-term and long-term value. And with several other potential consulting agreements in its pipeline, the company could be poised to unlock significant value over the coming quarters.

A Great Investment Opportunity

EastBridge Investment Group (OTCBB: EBIG) represents a solid investment opportunity. While it has faced some timing setbacks, the decision to delay some of its IPOs could end up unlocking significantly more value. Meanwhile, its consulting agreements promise to generate near-term income and long-term potential. In the end, these factors could lead to a strong end to a great year in 2011.

Learn more about EastBridge:

-EastBridge Announces Shareholder Conference Call on Wednesday, October 5th 2011
-Company Website
-View Recent SEC Filings

The company’s business model involves assisting companies with the regulatory requirements for becoming a U.S.-listed public company in exchange for a cash fee and equity stake. A portion of this equity stake is often spun off to EBIG’s shareholders, while the rest is either sold to generate operating cash flow or held on its balance sheet as a short-term or long-term asset.  EastBridge also earns cash by helping U.S. companies access Asian markets by facilitating joint venture agreements.

Diversified Portfolio of High-Growth Clients

EastBridge Investment Group offers investors diversified access to China’s growing economy. From a for-profit education company generating $45 million a year in revenues to a manufacturer of luxury yachts, the company’s 10% to 20% equity stakes in client companies offer its own shareholders a very diversified play on China’s growing economy.

The company’s clients include education companies like Tsingda Education, Wonder Education and Cambium Learning, manufacturing companies like AREM Pacific and Fizza Beverage,  technology companies like Dwarf Technologies and many more each year. Meanwhile, two of its clients are approaching an initial public offering in the United States that could unlock significant near-term value for shareholders.

A Unique Service, a Growing End Market

EastBridge provides a unique service to its clients, particularly at a time when China’s government is raising interest rates and bank reserve requirements. By helping companies raise money in the United States, these companies can access much-needed capital to support their rapid expansion in one of the fastest growing major economies in the world.

And then there’s the country’s enormous domestic growth. “As developing Asia’s people secure their middle class status, its emerging consumers are very much expected to become the next global consumers and assume the traditional role of the U.S. and European middle classes,” reads an Asian Development Bank report from 2010, highlighting the country’s enormous potential.

A Great Investment Opportunity

Investors interested in learning more about EastBridge Investment Corp (OTCBB: EBIG) should see the following resources:

• Company Website
• Latest 10-Q Quarterly Filing
• Latest 10-K Annual Filing
• www.facebook.com/ebigcorp

EastBridge Investment Group (OTCBB: EBIG) recently announced that its client, Tsingda Education, has obtained a private equity funding of $13.68 million.

Mr. Keith Wong, CEO of EastBridge, commented, “This is a very positive step before Tsingda’s IPO. The new private equity investor has bought 3,000,000 shares at $4.56 per share. Tsingda now has a pre-IPO market valuation of about $183,000,000. The previous private equity investors paid $1.60 per share in September 2010. All the pertinent information of the current and previous transactions has been filed with the Securities and Exchange Commission. We are working diligently with Tsingda to facilitate their IPO work.”

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in the education, internet, energy, mining and service sectors. To learn more about EastBridge Investment Group go to our web site: www.EbigCorp.com. To receive EBIG’s email alert, send a blank email to info@EbigCorp.com. Join us on Facebook at the following link: http://www.facebook.com/ebigcorp.

Forward-Looking Statements: Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

EastBridge Investment Group Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, held an investor conference call on July 11, 2011, which outlined its current status and future outlook. On the call, the company’s executives also revealed a number of near-term catalysts that could push the stock higher over the coming months.

Chinese IPO Markets are “Slowly Improving”

In order to obtain a favorable valuation, EastBridge clients Tsingda Education and Wonder Education have been forced to delay their initial public offerings. A number of recent accounting scandals, combined with government measures to slow the economy, has adversely affected investors’ appetite for Chinese public companies. But luckily, things are now starting to turn around.

Management indicated on the conference call that the Chinese IPO climate is slowly improving and they are in discussions with investment banks to set a date for the offerings. Meanwhile, both companies are fully reporting and continue to post strong top and bottom line growth. Tsingda Education’s net income is projected to reach $16 million in 2012, while Wonder Education has projected growth of around 20%.

In addition to Tsingda and Wonder, the company is close to filing registration statements for two other clients, Dwarf Technology and Arem Pacific.  They expect to file both companies within the next 30 to 45 days.  Also, they continue to work with several other clients to prepare them for the process to get listed on a US stock exchange.  EastBridge’s pipeline of clients is strong and flowing.

Fizza and Cambium Provide Near-term Potential

In the meantime, EastBridge has branched out into new agreements that involve upfront payments as well as equity. Some investors are hoping that these agreements will pay off in the near-term, while Tsingda Education, Wonder Education and other clients offer longer-term potential with their equity.

Management indicated on the conference call that one of its clients, Cambrium Learning, was working with Tsingda Education to introduce English language learning software and services in China. The company is earning a fee by virtue of this introduction, and will share in the revenue generated by this joint venture (JV) between Tsingda and Cambium.   Of course, this JV will also provide additional revenue for Tsingda helping to improve its net income, leading to a higher IPO valuation.

Fizza is a U.S.-based client that is developing a drink that tastes like soda but has the same healthy properties as milk. In a similar arrangement, this company paid an upfront fee in addition to equity in order to engage EastBridge.  Meanwhile, management reported significant progress in setting up its manufacturing capacity and preparing its product for launch.

A Great Investment Opportunity

Due to the IPO delays and its temporary delisting from the OTCBB, EastBridge’s stock dropped some 55% over the past six months. Now, the company is relisted on the OTCBB and closer than ever to facilitating several IPOs and unlocking significant value for shareholders. In the meantime, the firm’s fee-based clients should provide a steady income to help bolster its financials.

In the end, these factors make EastBridge Investment Group (OTCBB: EBIG) an attractive investment opportunity at these levels.

Chinese chemical manufacturers are seeing an uptick in demand this year. China’s booming economy has led to surging industrial and agricultural activity, boosting the need for specialty chemicals. The Bedford Report examines the Chemical Manufacturing Industry and provides research reports on Yongye International, Inc. (NASDAQ: YONG) and Gulf Resources, Inc. (NASDAQ: GFRE). Access to the full company reports can be found at:

www.bedfordreport.com/YONG

www.bedfordreport.com/GFRE

Companies in the Chemical Manufacturing Industry provide a wide range of products for use in a variety of applications. After the recession battered many companies in the sector, several firms are focusing on reducing their product portfolio and improving their financials.

Gulf Resources manufactures and trades bromine, crude salt and specialty chemical products for manufacturing industries and in agriculture in China. Bromine prices are on the upswing this year. China is currently the world’s third largest bromine producer after the United States and Israel. The production of bromine is presently over 150,000 metric tons/year in China, but bromine demand continues to outpace supply.

The Bedford Report releases investment research on the Chemical Manufacturing Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Yongye International produces and markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed. Shares of Yongye have been on the upswing following Morgan Stanley’s Asian private equity arm’s $50 million investment in the chemical manufacturer.

“We believe this transaction will not only provide us with the financial resources to expand our operations to meet the growing demand for our Shengmingsu agricultural nutrient products but also will further enhance our corporate governance,” Yongye’s Chairman and CEO Zishen Wu said in a statement.

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, has added several new clients in recent months and continues to progress towards its initial public offerings for Wonder and Tsingda Education. Combined, these two developments could generate significant value for shareholders over the coming years.

New Clients Bolster Future Pipeline

EastBridge has entered into numerous listing agreements over the past few months, which generate both short-term consulting revenues and long-term equity value. Earlier this month, the company entered into listing agreements with three new clients in Jiangsu Province, China. And last month, the firm entered into a consulting agreement with Cambrium Learning Group, from Dallas, Texas.

New clients Jiangsu Shengan Metal Products Co., Ltd., Jiangsu JinLi Copper Co., Ltd. and Jiangsu Huiyu Hardware Manufacturing Co., Ltd. are very established copper rods and tubes, brass faucets and hardware accessories manufacturers in China. Combined, these firms produce net income of approximately $5 million for 2010 and are growing at a steady pace.

Meanwhile, Cambrium Learning Group, a Nasdaq-listed company based in Dallas, Texas, is a great company with a rich suite of products for online applications. With many of its K-12 products capable of being adapted to students in China, the company is seeking joint ventures to drive their top and bottom line moving forward.

Existing Clients Progress Towards IPOs

EastBridge is also diligently working to complete the delayed IPO work for Tsingda and Wonder Education, which could unlock significant value for shareholders. Using a combination of SEC filings and reasonable estimates, these initial public offerings could be worth north of $35 million for the company’s shareholders over the coming years.

According to the S-1 filing with the SEC, the company owns 3,400,000 shares of Wonder Education that represents about 17.0% of its outstanding shares.  EastBridge has already distributed 899,875 dividend shares to its shareholders on a pro-rata basis as required by the S-1.  The initial public offering of Wonder could result in significant value being unlocked for shareholders.

Meanwhile, similar SEC filings also show that EastBridge owns 2,079,740 shares of Tsingda Education that represents about 6.2% of its total outstanding shares.  EastBridge will also distribute dividend shares to its shareholders for Tsingda on a pro-rata basis during the summer months.  EastBridge will assist both companies (Wonder and Tsingda) in creating a market price for its stock via the IPO process.

Conclusions

EastBridge Investment Group (OTCBB: EBIG) is on the tipping point of unlocking significant value, with several new clients added in recent months and steady progress being made towards the IPOs of Wonder and Tsingda Education.

If you were following this tome during the February/March bloodbath, you will recall I predicted the demise of all things smaller and China if China Media Express (CCME) turned out to be fraudulent. While the jury is still out on that one, it’s obvious there’s Trouble in River City.

Post CCME any blogger who could publish a fabricated report could knock 40% off a stock overnight. You could see the shorts piling on in advance of the “to be released” Cyber Smear. The legitimate researchers made a fortune identifying the fraud, but there have clearly been some abuses on that side of the ledger.

The market assumed every China based small cap was fabricating all its numbers, and priced accordingly. I believe about 1/3 of the China small caps are publishing numbers with some level of inaccuracy, so there are still problems to deal with.

Here’s the chart of the stock that I believe is turning the tide:

China Biotics is looking like the hero we have needed. This stock has remained on my buy list through the blood bath as I had cautious faith. CHBT has rebounded beautifully, and has recaptured nearly all the loss from Feb/March.

On Thursday morning, Citron Research accused them of fabricating their numbers, and the stock swooned. I sold my position as I watched it drop, did some research, watched it trade, and bought it back.

Citron references a research report, complete with pictures and all sorts of accusations of fraud. This report had already been released in early March, and they were just bringing it back up.

I read the report, but then I looked a little further. No author claims to have written the report, and there’s a claim the report is associated with the China Economic Review.

So, I went to www.chinaeconomicreview.com, and found a rather robust web site that appears to be a very legitimate source of information.

Yet, when I searched the site using the words “China Biotics”, there were no search results. I also perused a few of the articles, and learned everyone one of them has an identified author.

If this wasn’t enough, the stock’s behavior told me all I wanted to know. On Thursday, the stock traded a whopping 1.742 million shares, dropped 20% briefly, then rebounded in a big way to close nearly where it started.

Friday in a down market, CHBT made a new 2 month high of $12, and appears to be right back on track to move even higher. If you had the courage, you could have bought this one at $8 less than a month ago.

Now, if you’re long, this looks great. However, if you’re short this stock, you do not like Thursday’s action one bit, and you might be moved to close out your short position as it’s not worth the risk of holding.

Thursday’s action in CHBT is, in my view, the likely Tipping Point for the short sellers in the China Small Cap space. The smear simply didn’t work.

I bought CHBT back a little higher than where I sold it. Traders use the term “Whipsawed” by the market, but I think I made the right move.

I still believe this one is going to $20. But, let’s move on to my new #1 China small cap pick for 2011:

For my #1 China small cap stock for 2011, sign up for a trial subscription by visiting www.emergingchinastocks.com.

Warmest Regards,

Larry Isen

EastBridge Investment Group Inc. (OTCBB: EBIG), a leading provider of diversified financial services designed to help emerging public companies list on U.S. exchanges, could benefit from one of its clients’ exposure to China’s burgeoning automotive industry. As the largest automotive dealership in China’s southeast Delta region, Golden Eagle could see significant upside when listed on a U.S. exchange.

China Becomes the Largest Automotive Market in the World

The world automotive industry’s future doesn’t look too bright. Demand in the United States is only expected to rise marginally, while sales in Europe and Japan are expected to dip lower. However, China’s insatiable demand for cars and trucks will propel it to become the largest automotive market in the world, according to a recent article published in The Economist.

Source: The Economist – December 27, 2010

Overall, automobile production in China is expected to reach 16 million units by 2012, hitting a CAGR of around 17% between 2009 and 2012, according to RNCOS. Meanwhile, the country’s automotive aftermarket is also expected to rapidly grow. Analysts at Freedonia Group project that the industry will grow 18.3% annually through 2014, driven by its expanding and aging stock of light vehicles.

Golden Eagle is Poised to Capitalize on the Growth

Golden Eagle Auto Sales Company is one of the largest dealers for LiFan Automobiles in China. With a historical growth rate of more than 35% per year since its mass production seven years ago, the company is well-positioned to capitalize on China’s growing automotive industry. The company also provides aftermarket accessories to LiFan for distribution to other dealers in China.

In April of 2011, the company signed an agreement with EastBridge to ultimately list on a U.S. exchange. EastBridge will provide consulting services to prepare it for an SEC audit, help it obtain U.S. SEC approvals, and provide public relations and capital raising functions as well. With the additional capital raised through a public offering, Golden Eagle could see significantly higher growth rates ahead.

While few details of the agreement have not yet been released, EastBridge has traditionally received a combination of cash and equity for assisting clients in the IPO process. Once the clients successfully go public, EastBridge has then offered its own shareholders equity in the client through a share dividend, while keeping a significant stake of its own to build up its balance sheet.

Conclusions

In the end, investors may want to take a closer look at EastBridge Investment Group (OTCBB: EBIG) given its stake in Golden Eagle – a premier play on China’s rapidly growing automotive industry. Combined with its other plays in the country’s education, entertainment and energy industries, investors could realize significant upside potential over the long-term.

GC China’s current assembly facility is located in East-Lake Development Zone in Wuhan, with land coverage of 36,000m2. The facility was originally designed to produce accessories for small aircrafts. Given that the Company is the only wind power equipment manufacturer in Hubei Province, in support of the Company, the Wuhan Municipal Government provided such facility for at no cost to the Company in 2006 for the production and assembly of wind turbine products.

GC China has previously announced plans to expand its portfolio of wind turbines to produce 2.5MW turbines, which it believes will broaden its sales opportunities both into the domestic Chinese market and into other high growth wind power markets including Europe and North America. The East-Lake Development Zone facility is designed to withstand small tonnage cranes but is not sufficient to meet assembly requirements of the 2.5MW wind turbine.

The Company, through consultation and discussions with the Wuhan Government, will move from the current assembly facility, to an interim facility provided by the Wuhan Government at favorable costs, which is located in Jiangxia District of Wuhan.

Mr. Hou Tiexin, Chairman of GC China, stated that, “The interim facility satisfies all existing assembly requirements of the Company for 1MW and 1.1MW turbines. It is important to note that this move will not create any delays or impediments to fulfilling current business and production of 1MW and 1.1MW turbines. Upon the completion of the Taonan assembly facility, we plan to relocate production to Taonan so as to satisfy the production requirement of larger 2.5MW wind turbines. We expect to make this relocation to Taonan in the first quarter of 2012. Furthermore, the Taonan assembly facility is strategically located close to current key markets of the Company, which will help to reduce transportation costs. The relocation is not expected to have significant impacts to the Company’s production and operation.”

The Company intends to move all wind turbine production to the Taonan assembly facility before the end of 2011.

“In order to meet the needs of the overall economic development of Wuhan City, the contribution by GC-Nordic (the wholly owned subsidiary of GC China) is noteworthy. The Wuhan Municipal Government will continue to support GC-Nordic’s development, eventually making it one of the most successful enterprises in renewable energy industry in Hubei Province,” said by the leadership of Wuhan Municipal Government.

About GC China Turbine Corp.

GC China is a leading manufacturer of state-of-the-art 2-blade and 3-blade wind turbines based in Wuhan City of Hubei Province, China. The Company holds a license to manufacture a groundbreaking technology which meets rigorous requirements for low-cost and high reliability. For more information visit: www.gcchinaturbine.com

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, completion of definitive agreements with local and provincial governments, wind farms and utility companies, number of wind turbine systems ordered, manufactured, delivered and installed, the Company’s future strategic plans, the outlook for the Company’s markets and the demand for its products, estimated sales, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

March was the month of revelation. The month we, in fact, learned there is widespread fraud amongst China small cap companies.

When I launched this publication last October, I was confident I could uncover some great opportunities for subscribers and for myself. The first six weeks were a cake walk. I had 4 or 5 huge short term wins on my list.

It started to get a bit tougher in late November when the Shanghai A shares index fell 11% in four trading days as the market priced in the inflationary cycle in China. About 4 interest rate increases and a number of other tightening measures haven’t slowed inflation enough quite yet.

Then February and March came, and short sellers stated their case in a very public way- they very cleverly identified a few companies they believed were committing fraud, and the sector became a blood bath akin to a Freddy Krueger movie.

I knew they’d likely be right in a few instances, but thought I had the right move on the highly controversial China Media Express (Formerly NASDAQ and still halted CCME). Despite all the evidence the company’s numbers were on the up and up, the short sellers proved out, and I was dead wrong. Plain and simple- I blew it, and it cost me plenty in cash and credibility.

In 23 years of trading in the small cap environment, I’ve never wondered if I should invest over concerns the company was publishing fraudulent numbers. That’s a whole new arena for me.

I’m an journeying to the heart of NY- Times Square, to attend an all day seminar next Friday, hosted by a panel of experts, to teach me how to identify fraud in China companies. Never too late.

At one point I was so demoralized I was almost ready to abandon this service. However, a little perspective saved the day. 23 years of actively trading the market can teach you a lot.

I thought back to the two great cataclysmic events of the first decade of the 21st Century. Stock market devotees are describing it as the “lost decade”. Large caps were dead money for 10 years.

But, was it really a lost decade? Not if you played your cards right. Consider the first cataclysmic decline- the demise of the Internet stocks- that period of 2000 to early 2002 when all the rah rah boom Dot Coms turned into Dot Bombs. Stocks traded down from $100 to $1. 911 didn’t help, which was closely followed by Enron, World Com, and a host of the companies that shook the confidence of the American investor.

If you had the discipline when stocks traded below the value of the cash they had in the bank, and had the capital and courage to step in, you could have made a fortune investing in any surviving dot com in late 2001 and early 2002. The values were remarkable.

Then in 2008 we had a once in a century financial melt down. Overleveraged banks were dropping like flies, and our Government helped in a rather distasteful manner by bailing out the perpetrators of the biggest pyramid scheme in history- the sub prime mortgage meltdown. The Goldman Sachs, Lehman Brothers, and AIGs of the world made Bernie Madoff look like a carnival barker.

The market went into a free fall for months and commerce in the US economy came to a screeching halt.

However, once again, if you had courage and cash, the fortunes of a lifetime were there to be had. I can’t say I was personally clever enough, but I have friends who own Ford (NYSE: F) at $1.80, and Apple (NASDAQ: AAPL) under $100.

Fast forward to today’s China small cap market. Short sellers, to their credit, forced the issue, and I can count 9 China small caps halted for trading on my screen.

There has been a bloodbath in the sector, but I’m learning from the past, and realizing many of these will prove out to be the buys of a lifetime.

We haven’t completed the bottoming process quite yet, but some of the cream is starting to rise to the top.

With the month of April behind coupled with a little perspective, I now believe we can tip toe through this minefield and find a Shangri- La of profits on the other side. Again- those with the cash and courage can make the fortunes of a lifetime as the loud noise of fraud gives way to the more consistent sound of corporate achievement, and a return to more reasonable valuations.

This will happen with time, insider buying, cash dividends, tender offers, corporate performance, and the inevitable unmasking of the remaining offenders.

To summarize my thoughts- hang in there- we’re going to make a fortune as we get past this unfortunate period in time and the bargain hunters start to get emboldened.

Big Picture: The Shanghai A Shares

The first thing I do every morning is look at a chart of the Shanghai “A” shares. This is the index in China which mostly closely mirrors our S&P 500. These are the China large cap stocks most of which are partly government owned.

Here’s a long term look.

This chart looks a lot like our NASDAQ Composite. Our peak at 5,400 was March of 2000.

The Shanghai A shares attracted all the hot money in late 2007. In 2008, the China large caps followed our market down the toilet.

In Q1 of ’11 we’ve recovered nicely. China is behind, mostly due to inflation and tightening, the arch enemies of stock appreciation.

Until this market really breaks above those green trend arrows, the China stocks will struggle a bit. I thought we might be in for a breakout last month, but high fuel prices sabotaged the inevitable.

It’s going to happen as soon as the market perceives China has beaten inflation. Despite their red hot economy, growth will slow, inflation will go away, and this market will to go back to Goldilocks and off we’ll go- it will happen later this year.

Playing the Yuan

Here’s the deal. The dollar has been going lower down, and the Yuan- the Chinese currency, has slowly crept up.

Global economists, the US in the lead, have long complained the Chinese have artificially held down the value of their currency to make their exports cheaper and therefore more in demand.

However, the Chinese have a big problem exacerbated by this policy, and most China watchers believe the YUAN is finally going to be allowed to appreciate more rapidly.

China is now importing a lot of food and fossil fuels. Those prices are going up. In the month of February China had a trade deficit for the first time in decades.

One way to combat this problem is to allow the YUAN to appreciate more rapidly. If there currency strengthens, their imports become cheaper.

If you want to bet on the appreciation of the YUAN, CYB- the Wisdom Tree Dreyfus Chinese Yuan Fund is a way to do it. This ETF is designed to provide a total return by being long both Chinese super safe debt and the YUAN relative to the US dollar.

This ETF is about very stable, and should appreciate very slowly over a long period of time

If you want to place a bet on the Chinese YUAN with a pile of your “safe” money, CYB is the way to do it.

The YUAN broke through the 6.50 level to the dollar on Friday, matching it’s highest valuation since 1993. Analysts expect the YUAN to appreciate about 7% in 2011, and there’s still nearly 6% to go.

I’m adding it to the currently unpopulated Large Cap section on the site.

Warmest Regard,
Larry Isen
Emerging China Stocks
www.emergingchinastocks.com

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, recently reported revenues that increased from $50,000 to $1,741,682 in its 10-K annual report filing with the SEC. With several of its clients on the verge of going public, the company is at the tipping points of commercialization and ready to unlock significant value for shareholders.

The Tipping Point of Commercialization

EastBridge’s long-term business model is now approaching a crucial tipping point as the first of its clients prepare to list on U.S. exchanges. With 10 current clients and several other potential clients in various stages of negotiation, the company’s current $1.7 million in revenues from just one of its clients represents just the beginning of its commercialization phase.

Wonder Education is one of the closest of its client to unlocking significant value with plans to list on a U.S. stock exchange in the near future. EastBridge received 2,512,310 shares of Wonder for its consulting services in March of 2011 and declared a stock dividend of these shares for shareholders on record as of July 31, 2009, and this dividend is currently being distributed.

EastBridge has also received shares and declared dividends for two other clients. The company received 1,142,350 shares of Alpha Lujo in December 2010 and declared a dividend for shareholders on record as of March 31, 2011. Meanwhile, it also received 2,079,740 shares of Tsingda Education that will be distributed in part to shareholders on record as of March 15, 2010.

Some Clients Delayed, Progress in Others

One of the key issues addressed in its earnings conference call was the delay in the initial public offerings of Wonder and Tsingda Education. Despite EastBridge’s disappointment with the delay, the decision could result in significantly higher valuations with the attitude towards Chinese public companies a bit sour on Wall Street in recent months, and could prove a positive.

And while some clients have faced delays, EastBridge indicated that other clients are drawing closer to commercialization. Dwarf Technologies completed is audit and plans on filing its S-1 with the SEC in about two weeks, while it is still AREM Pacific and Alpha Green audits are nearly complete with S-1 filings slated for June.

EastBridge is also making progress with several newer clients, including Fizza, StrayArrow and Golden Eagle. Fizza and StrayArrow are in the process of raising seed capital and eventually seeking a listing on a U.S. exchange, while Golden Eagle was recently signed as a new client. Combined, these clients could provide a future pipeline of value for shareholders.

Conclusions

EastBridge recently reported strong financial results, despite some small setbacks, with a strong pipeline of deals set to unlock shareholder value over the long-term. As a result, this is one stock that investors may want to take a closer look at in the near future.

With all the turmoil in the China Small Cap world right now, let’s focus some attention on the longer term.

At some point all the issues will be resolved, and China equities will become the superstars of past years. From these valuations, it’s really a no brainer. It’s just a question of time.

So, when it’s time to pick up the pieces and dive back in, where should we look? Luckily for us we have a Google map, complete with our car nav audio instructions, on where to invest. It’s called the 12th Five Year Plan, and it was ratified by the National People’s Congress on March 14th 2011,

A Look Back

China’s move to an industrial nation started taking place in the 70′s. However, when you think about it, if this is the 12th five year plan, then there’s 55 years in the rear view mirror.

The first five year plan spanned 1953-57. For some reason, they skipped ’62-’66, and got on even 5 year increments from there. The 12th Five Year Plan covers 2011 to ’15.

The 1st Five Year plan was based on the Soviet economic model. During this period of time, 595 large to medium size projects were completed and put into production- 694 were targeted in the plan. The Soviet Union helped. It laid the foundation for industrial growth in China.

Out of the green shoots of China’s industrialization in the 50′s grew a new problem- agricultural production could not keep up with industrial production. Guess what- China has the same problem today, which has led to inflating food prices, and problem they can’t seem to get under control. That’s why one of the key features of the 12th Five Year plan is the modernization of their agricultural industry.

Highlights From The 12th Five Year Plan

The 12th Five year plan is focused on creating an environment for steady and sustainable growth, and addressing rising economic inequality.

I have read both favorable and unfavorable reviews of the plan. Many feel the plan, while widely expected to be focused on internal development, still remains too export driven.

It’s actually a rather modest plan, and it’s goals would appear to be easily attainable. Here’s some specifics:

• GDP growth from $39.9 Trillion in ’10 to $55.8 trillion in ’15.
• Service as a percentage of GDP: 51.5% up from 47.5%
• Urban income: $26 trillion, up from $19 trillion
• Rural income: $51.5 trillion, up from $47.5 trillion
• New Jobs: 51 million (’10) to 45 million (’15)

Most observers consider these goals fairly moderate, and wish the government were more focused on the “unleashing” of domestic consumption.

Here’s a list of specific goals spelled out in the plan:

• GDP Growth: 8%
• Income Growth: 7%
• 2.2% of GDP spent on R&D
• Keep population below 1.39 billion
• adjust and redistribute income gap
• firmly curb and excesses in housing prices

In either case, China has a history of obtaining its goals on the 5 year plans, and if so, China still represents one of the premier growth investment opportunities in the world.

Specific Structure

I don’t want to go into too much detail, because frankly, it’s really kind of boring. For our purposes as investors, we want to focus on the industries the government will be prioritizing. These 5 year plans are considered blue prints for businesses.

There are 16 sections to the plan, and within each section are several subsections, so you can see how long this could go on. Let me focus on some of the highlights.

Article 10 focuses on the development of strategic new industries. Here are the specific groups:

Energy saving and environmental protection, Next gen IT, Biotech, Hi end equipment (planes, satellites, etc), New or Renewable energy (nuclear, wind, solar), New Materials (rather earth, nano tech), and new energy transportation (like electric cars).

In the energy section alone, there are specifics targets placed on coal, crude oil, nuclear, Renewable (Hydro, wind, solar), and importing oil and gas.

Section 12 is all about transportation infrastructure. Goals: 9,000 KM of new highways; 300 billion RMB on hi speed rails, 45,000 KM of new passenger rails, new coal rails from Shanxi to Inner Mongolia, six new ports for heavy materials, adding 10,000 new berths, and new Beijing airport along with 11 new regional airports.

On the housing front, the 12th 5 year plan calls for the construction of 36 million affordable apartments for low-income people.

Expectations

The 12th 5 year plan was disappointing to many China devotees- the early indications on the plan set expectations it would focus on unlocking the enormous power of the largest emerging consumer class in the history of the world, and I still believe this is a sound growth area for at least the next decade.

Looking back at the 11th 5 year plan, it called for 7.5% GDP growth, 45 million new job creation, and discharge of major pollutants down 10%.

GDP growth over the last five years far eclipsed 7.5% to an average of 10.5%, and China beat its targets in nearly every other category.

Therefore, while the 5 year plans do serve as a guideline for business, the bar is set rather low on the targets, and easily attainable. We can assume the Chinese economy will under promise and over deliver.

Where To Invest

From reading the plan, I believe there will be several great investment themes in China stocks for the next 5 years.

There will still be major growth on the infrastructure front. Cement, steel, chemicals, construction- all of these sectors will continue to prosper in the next five years.

I also believe the modernization of agriculture will be a major theme for the next five years. Food costs are a major component of China’s inflation problem, and China is a net importer of food.

Farmers are the single largest group of people in China, but the rights they have to their land can be easily infringed on, thus discouraging investment, modernization, and expansion. I’ll be looking for opportunities in the agricultural sector as the China small caps start to come back. China has to encourage more food production to lower costs to consumers and curb inflation.

Despite the plan’s lack of focus on the emerging consumer class, I believe there will be fortunes made investing in companies who cater to China’s massive emerging consumer class.

In the past 10 years, the Chinese consumer class has grown 10 fold. 1% of the population could afford a Western life style- today’s its 10%. That’s over 200 million consumers- roughly the size of the US consumer population.

There’s still 90% to go. I’m not assuming all 1.1 billion people will become westernized by 2020, but if the number simply doubles, it’s still only 20% of the population.

Look for a new idea on Tuesday.

Larry Isen
http://www.emergingchinastocks.com/

EastBridge Investment Group (EBIG) (OTC.BB: EBIG) (Pinksheets: EBIG) today announced improved financials in its 10K filing. The Company will also have a Shareholder Telephone Conference Call on Thursday, April 21, 2011 at 11:00 a.m. EDT.

EastBridge’s Revenue improved from $50,000 in 2009 to $1,741,682 in 2010; Total Assets increased from $185,931 to approximately $1.7 million and its Shareholder Equity improved from a negative $878,074 to a positive $58,863. EastBridge’s management expects 2011 to continue this upward trend. To discuss these results plus the status of EastBridge’s clients, the management will hold a Shareholder Conference Call. Following is the dial in information:

Conference Date and Time: Thursday, April 21, 2011 at 11:00 a.m., EDT
Dial in number: 1-605-475-6333, Participant Access Code: 769117

Mr. Norm Klein, COO/CFO of EastBridge, commented, “We are pleased with our improved 2010 financials and we expect to significantly improve those results in 2011. As we have indicated, as soon as we become qualified to do so, we will move to a higher stock exchange. Last year was a good start toward this goal. We look forward to discussing our 10K and giving our shareholders an update on the work we are doing for our clients during our conference call on the 21st.”

If during the shareholder telephone conference, a connection difficulty occurs, please send an email to info@ebigcorp.com for immediate assistance.

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in the education, internet, energy, mining and service sectors. To learn more about EastBridge Investment Group go to our web site: www.ebigcorp.com. To receive EBIG’s email alert, send a blank email to info@ebigcorp.com. Join us on Facebook at the following link: http://www.facebook.com/pages/Eastbridge-Investment-Group/110596462346210.

Forward-Looking Statements

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

By being a major force behind taking Tsingda eEDU public, EastBridge and subsequently EBIG shareholders will reap rewards. Per the agreement between EastBridge and Tsingda, EastBridge will hold a 10 to 20 percent stake in the new public company and will be passing 1 to 2 percent of the overall holdings to the shareholders of EBIG. In simpler terms, EastBridge intends to dividend, on a pro-rata basis, up to 300,000 ordinary shares of Tsingda stock to shareholders of EastBridge, as soon as Tsingda’s stock starts trading and they are approved by FINRA. All shareholders on record on March 15, 2010, are eligible for this dividend. To date, Tsingda has received approval on two registration filings with the SEC and is presently waiting for the third and final approval.

Planned Success for Tsingda is Success for EastBridge

Some people may look at the roll EastBridge played in the IPO as merely a vehicle for Tsingda to achieve public status and performance of a job for EastBridge, but that is taking a far too simplistic rationale as to the overall picture. By taking a stake in Tsingda, this is an investment for EastBridge and, as with any good investment, due diligence was performed to maximize odds of future success and increased revenue and value for all involved.

Tsingda eEDU has a strong foothold within the Peoples Republic of China (PRC) as a major presence in the online education industry. Tsingda Education, with its subsidiary Tsingda Network, is a leading provider of online educational services in the PRC, offering classes through pre-recorded lessons and in real-time via its Tsingda Vitrual Internet Classroom. Tsingda runs the largest chain of learning centers in China in terms of the number of learning centers, known as “Tsingda Learning Centers” which target elementary school students and consist mainly of franchised locations. As of December 31, 2010, there were 2,346 Tsingda Learning Centers across China, which includes 21 Company-owned and 2,325 franchised learning centers. Tsingda has also developed a robust, interactive educational platform which allows students to search and subscribe to virtual classrooms offered by a wide range of teachers in the PRC. Students may choose to access courses via one of the learning centers, home or any other location that has a computer with internet access.

Growth Potential for Tsingda

While Tsingda does indeed have a relatively short operating history (company was formed in 2006), the burgeoning into a revenue-generating machine really began over the last few years with Tsingda realizing annual growth rate of sales revenue from 2008 to 2009 and 2009 to 2010 of approximately 101% and 87%, respectively. Recent totals reported for fiscal year 2010 were highlighted by Tsingda generating $27,447,545 in gross revenues.

The Peoples Republic of China represents approximately one quarter of the global population. Calculations based on information published by the PRC government, places the target population market for Tsingda clients at approximately 360 million individuals comprised of: infants and children below school age six (160 million); primary school students (110 million); junior high school students (60 million); and senior high school students (30 million). Although seeing success and increasing number of clients, Tsingda has still only scratched the surface of the market potential.

Tsingda’s business strategies are aligned to generate revenue through many avenues including franchise fees and programs purchased by end users which can generate cash on multiple occasions. For example, because pre-recorded courses where purchased by different students over and over, the 6,869 courses were actually purchased an aggregate of 7,176,115 times through December 31, 2010.

All in All a Solid Deal

When evaluating any business agreement, a closer look is required to get a true grip on the breadth of the arrangement. In the case of EastBridge and Tsingda, the contract was to bring Tsingda forth as a public entity, but a keen investor will take a look at all components to make an educated evaluation regarding potential, as that is the foundation of developmental companies and what the future may hold. In the case of EBIG shareholders, the reward is twice as sweet as EastBridge will hold a significant amount of shares of Tsingda which may increase the value of EastBridge on its own in addition to the fact that shares of the soon-to-be-public Tsingda eEDU will be showing up in their own portfolio.

Interested parties are encouraged to read the complete S-1 filing at http://www.sec.gov/Archives/edgar/data/1381790/000093041311001975/c64822_s-1a.htm

Accelerize:          Can you provide us with a brief overview of EastBridge Investment Group and what it does?

EastBridge:         EastBridge provides financial services to its clients, this includes helping them with capital raises, getting listed on U.S. stock exchanges and joint ventures. To date, our primary service is to help clients become listed on a U.S. stock exchange. Most of our clients are in the Far East in places like China, Australia, Hong Kong, etc. And, for our services, we receive cash fees plus 10% to 20% ownership in a client, so once they are listed, we own 10% to 20% of the outstanding stock.

Accelerize:          Of that 10% to 20%, how much do you typically dividend to shareholders versus keep for yourself, and long-term, do you plan on holding that equity for several years or just until certain restrictions go away?

EastBridge:         For the most part, we provide a stock dividend to EastBridge shareholders that amounts to anywhere from 1% to 2% of outstanding stock.

What we normally do is declare a record date. For example, we just did one for Alpha Lujo, we sent out a press release on March 1^st and said that ,as of March 31^st, if you are a shareholder of EastBridge, you will become a shareholder of Alpha Lujo as well, once we issue the dividend. And, we normally issue those dividend shares after a client has been cleared by the SEC.

As far as what EastBridge does with the percentage we own, once a client becomes listed, we will sell a small percentage of that stock, to help our cash flow. But, our main goal is to hold our client’s stock, because what we’re hoping to have a long-term relationship with these clients where we can help them grow their businesses and help them with future capital raises, etc.  We intend to add value to their businesses which should increase the value of their stock that we will hold.

Helping our cash flow by selling some stock will be applied to our future business, because that allows us to do more marketing, visit potential clients, etc. Bottom line, we will use the extra cash to grow our business.

Accelerize:          So, long-term, that converts you somewhat of a holding company, like Berkshire Hathaway, but on a smaller scale, where you own equity in a lot of different companies?

EastBridge:         Yes, that’s exactly right. Obviously, it helps our balance sheet with the increase in assets. Short-term, once a client gets listed and cleared, we can sell some stock and start recording that as revenue, and our plans are to spread that revenue over 2-3 quarters. That helps us build our revenues, which will also increase our net income each quarter. So, it helps both our balance sheet and our income statements. Long-term, our financials should significantly look better as we get more and more clients listed. And, as I mentioned earlier, we’ll hold onto the bulk of our client’s stock , so our balance sheet will continue to improve over time.

Accelerize:          And, that should also be a pretty versatile cap structure as well, since you’ll be able to take out short-term loans against those assets?

EastBridge:         Yes, very much so. And our long-term plan for EastBridge is to move to a higher stock exchange.  Currently, we’re trading on the OTC markets  – our intent is to be listed on Amex or Nasdaq. Obviously, we need to have strong financials for that to happen and our stock price needs to be at the right level. And, we believe we can get there, as our financials begin to improve. They are starting to improve right now and we believe that they will continue to improve to a point where our share price will increase. Our financials should become very strong over the next several quarters, and we’ll be able to apply to Amex or Nasdaq. Once you get to a higher exchange that will help us into the future.

Accelerize:          Yes, you’ll have significantly increased liquidity.

EastBridge:         Yes, and really provide great value to shareholders. Because, once you get to the higher exchanges, you begin having more financial institutions invest into your company bringing higher net worth investors. There’s a chance we might do an IPO as a part of the listing to a higher stock exchange.   This will provide the necessary capital for us to increase our business significantly.  All of these plans are intended to grow the company, bring us additional clients with high market caps.  This should increase shareholder value.

Accelerize:          And then, have you publicly disclosed any kind of a timeline for an uplisting or does that depend on other factors?

EastBridge:         No timeline. It’s really based on results. Our share price needs to be at the right level and the only way to do that is with strong financials. We believe that it’s doable in the near-term, versus the long-term.  Once we list a couple of our clients, our financials will improve significantly and we will apply to a higher exchange.  Let me be perfectly clear – we will not move to a new exchange until we have the necessary strong financials.  The move will be based on results, not a target date.

Accelerize:          How many clients do you plan on helping become public this year and maybe over the next 3-5 years? And, what can shareholders expect from those as far as dividends?

EastBridge:         Well, this year, our target is 3-4 clients and probably somewhere in the range of 4-6 clients per year for future years.  One or two clients should be listed by the end of June this year and then hopefully list 1-2 more clients by the end of 2011. So, I think that’s a good target for this year, and then, as I stated before, we should be able to grow the business and increase that to 4-6 per year as we move into the future.

Accelerize:          What is the average market capitalization for these clients?

EastBridge:         We work with small to medium sized companies, so I expect their market caps to be somewhere in the $20 to $75 million.  We might have a couple larger than that, but for the most part, it should be in that range.

Accelerize:          So, then as far as dividends, if you wanted to make the calculation, between $25 and $75 million, take 1% to2% of that, and multiply that by the number of clients per year.

EastBridge:         That’s exactly right. Of course, that amount is spread over 1600 shareholders of EastBridge and it depends on the number of EastBridge shares that you own.   More EastBridge shares that you own, the more client shares you will own.  Again, we usually distribute the dividends after the company gets cleared by the SEC. Of course, SEC clearance happens before they actually get listed. So, people should have their shares before the company gets listed on a U.S. stock exchange.  After listing, you can usually begin trading the stock if you have free trading shares.  If the stock is restricted, then you will need to wait until the stock is freed up.  Usually, restrictions last anywhere from six to twelve months after SEC clearance.  Restrictions are placed on stocks by the SEC, not by Eastbridge.

Accelerize:          On another topic, there are a lot of accounting concerns with some Chinese companies. Do you work with a lot of US based auditors with these companies?

EastBridge:         They are all US based auditors, because you need to understand what the SEC requirements are, etc. We are very, very careful with that. We work with the clients very closely to help improve their accounting practices and making sure they meet US GAAP requirements, which are some very strict accounting practices that need to be met. We work with several different auditors and SEC attorneys, we do the correct due diligence and scrutiny of the clients. Before the auditor get started, we have the auditor review the accounting just to make sure we’re not missing any major issues there.

We understand the issue and the concern from US investors, and we’re just doing the correct amount of due diligence and scrutiny of their books and accounting practices, to hopefully alleviate those concerns.

Accelerize:          Then, from a macroeconomic prospective, do you have any thoughts or opinions on the Chinese government’s move to raise interest rates to combat inflation? Or, any other opinions on those issues?

EastBridge:         I think we all know that the Chinese economy is growing significantly and I believe that growth will continue. They are #2 in the world, just below the US, so obviously they’re a key world partner. And, what’s really encouraging, is that their middle class is growing and those families and individuals are purchasing items that they never even thought of in the past. So, we believe that’s going to continue, so the opportunity is great.

As you mentioned, there are a couple of concerns around inflation and interest rates, and I think, hopefully, the Chinese government and US governments will work together to get those resolved. So, we think the future is very, very bright in China.  EastBridge provides our shareholders  not only the opportunity to hold stock in Eastbridge, but also in our Chinese client companies that should grow significantly.  Therefore,  our shareholders can participate in the growth of a very strong economy that could be #1 in the world someday.

Accelerize:          And, I know, a lot of your clients like Wonder Education and Tsingda are focused more on the domestic markets rather than export markets. And, I know a lot of these negative changes are largely only affecting export companies, like the appreciation in the Yuan and so forth. So, that’s good.

EastBridge:         Exactly.

Accelerize:          What does the timeline look like for the next 2-3 clients for this year?

EastBridge:         We have two education companies in China that are very good, strong companies that plan to get listed and conduct an IPO in the near future.

The first one is called Tsingda and they tutor kids from K-12 and their business has doubled every year over the last three years. We’ve already achieved clearance on a couple SEC registration statements, and we’re in the process of receiving clearance for a third registration statement for their IPO, which we’re hoping to conduct over the next 30-60 days. Once that is done, we’ll be applying to Amex to get them listed.  We plan to complete all of this the end of May.

Our second client is Wonder International Education Investment Group and they have already been cleared by the SEC. We’re just about ready to file their S-1 registration statement for their IPO, which we’re hoping to complete in the next couple of months, and obtain an Amex listing for them as well by the end of June.

Those are two clients that are close to being listed on Amex, most likely, and we’re hoping to get that done by the end of June. We’re working on several other clients, too. One is Dwarf Technologies, one is Aero Pacific and one is Alpha Green. All of these companies are going through audits right now, and working with SEC attorneys that EastBridge has provided. I would expect that we will have 1-2 of these companies listed by the end of 2011.

There’s another company called Alpha Lujo that is based in the US and we’re working on merging an Australian company into that firm. The Australian company is involved with electric vehicles, so we think their potential is extremely high. We hope to get that merger completed in the near future, and Alpha Lujo is already trading on the OTC market, so people can already go purchase that stock. Once the merger is done, we should see some significant growth there.

So, those are the primary companies that we’re working with, and we’re also looking for potential new clients. We’re close on a couple, but I can’t share those details at this time, until we have those agreements executed.

Accelerize:          For Alpha Lujo, is that for equity or just for a fee?

EastBridge:         We have already received our stock for that, because we helped the Australian company purchase an OTCBB shell company, which was called E Global Marketing and we changed the name to Alpha Lujo. As I mentioned earlier, we’re going to provide a share dividend for EastBridge shareholders on record as of March 31^st of this year.

Accelerize:          Ok, and moving back to Tsingda Education and Wonder Education, do you know what multiples the comparables are trading at?

EastBridge:         Most of the multiples for the education companies are anywhere from 10x to 20x, so we’re hoping to have a similar multiple for Tsingda and Wonder when they complete their IPO process.

Accelerize:          If you could tell would-be shareholders one thing, what would it be?

EastBridge:         I think the future is very bright for EastBridge. We have 3-4 clients hopefully listed by the end of this year, with Wonder and Tsingda leading the way. Once we get a couple clients listed, our financials will become stronger. In fact, our financials for 2010 are already going to be better, because we were able to record part of Tsingda’s revenues in the fourth quarter of 2010. Because of that,  we’re showing revenue of about $1 million and net income of about $800,000 in the fourth quarter of 2010, which we shared with the market via an Earning Guidance in a press release in late February.

Our annual report will be filed within the next couple of weeks and people can see our fourth quarter results. So, even now, our results are stronger than what they have been in the past, and we expect to continue that as we move through 2011. So, we believe that the future looks bright, we plan to move to a higher stock exchange in the near future.  It’s a good time to get into EBIG right now and hopefully we’ll all share in the success of Eastbridge.

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies seeking to list on U.S. exchanges, appears set to make a technical move higher, according to a recent video analysis.

About EastBridge Investment Group

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in electronics, real estate, auto, metal, energy, environmental, bioscience and food retail distribution. To learn more about EastBridge Investment Group go to our web site: www.EbigCorp.com. To receive EBIG’s email alert, send a blank email to info@EbigCorp.com.

In a quiet regulatory filing made with the SEC, EastBridge took a big step closer to unlocking significant value for its shareholders. Tsingda Education completed its S-1 registration statement on Friday, March 4th, which provides some key insights into just how much value EBIG shareholders can expect to see. So, how much will this stake be worth and what’s the potential moving forward?

Tsingda Education indicated that it would be registering 6,600,000 ordinary shares that are being sold by a number of entities, including 375,625 shares held by EastBridge. Meanwhile, EastBridge will retain the remainder of its 2,079,740 shares until a later date when it will have the option of selling them on the open market. Finally, the company indicated that it would be issuing a dividend of up to 300,000 shares to its own shareholders after the distribution takes place for Eastbridge shareholders on record on March 15, 2010. EastBridge will assist Tsingda in creating a market price for its stock by helping them list on a U.S. stock exchange.

Tsingda Education is a Strong Performer

In fiscal 2009, the education provider reported $14.65 million in revenues, up 101% year over year, and net income of $7.1 million, up 77.9% year over year. Meanwhile, the company’s balance sheet showed shareholders’ equity of more than $13.5 million, as of December 31, 2009. With 33,729,862 shares outstanding, these figures could translate into a favorable share price.

With net income of $7.1 million, Tsingda Education generated approximately $0.21 per share in earnings in 2009, which equates to a price-earnings multiple of around 7.6x its trailing numbers. Meanwhile, earnings seem to be only growing with EastBridge noting on its most recent conference call that the company’s management forecast 2010 revenues of $26 million and net income of $11 million for Tsingda.

A quick look at peer multiples suggests that the stock could trade at a very favorable valuation for EastBridge and its shareholders. Chinacast Education trades at a multiple of 16.12x, while ChinaEdu Corporation trades at a multiple of nearly 21x its trailing earnings. These multiples could equate to a share price of $3.36 to $4.20 per share, based on 2009 net income alone.

As a result, EastBrige shareholders may want to pay close attention to these developments as they unfold, as it could mean significant value over the near-term.

EastBridge Investment Group (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. stock exchanges. With clients like Tsingda Education and Wonder Education, the company is uniquely positioned to profit from China’s growing education sector.

EastBridge recently held a shareholders’ conference call in late-January that outlined its plans for the coming year. With the upcoming IPO of Wonder Education and Tsingda Education, investors are looking forward to the potential dividends and returns planned by the company, but there were some concerns about the plans to up-list to the Amex exchange.

The company noted that concerns about a proposed reverse stock split – needed to achieve the minimum share price for an Amex listing – were overdone. After all, a stock split does not affect the market capitalization of the stock, while an up-listing will increase exposure and likely lead to more trading volume and increased interest by institutional investors. Also, the management of the company stressed over and over again that a reverse split will not occur until the company’s financials can support such a move and support a much higher stock price.

Meanwhile, the terms of the potential reverse stock split will depend largely on the pending IPOs of Tsingda Education and Wonder Education. If the transactions generate enough value to organically drive the share price higher, a reverse split may prove unnecessary. And given the enormous potential, this remains a strong possibility, according to some investors.

Looking ahead, EastBridge indicated that it expects Wonder Education to IPO in about four to six months. The company recently received clearance from the SEC for its registration filings and has planned a road show for late-February or early-March to begin the IPO process. Meanwhile, Tsingda Education’s registrations with the SEC are expected to be approved in the near future, too. Tsingda will then move quickly to listing on AMEX. Additionally, the company is working with several other clients to help them become public companies and become listed in the United States and/or help them raise capital, including Dwarf Technologies, Arem Pacific, Stayarrow, Alpha Lujo (E-Global), Alpha Green and Fizza. A few of these, if not all of them, should help to make 2011 an exciting year for EastBridge.

In the end, EastBridge offers investors several exciting catalysts, including two potential IPO candidates and an up-listing that could improve liquidity and enable additional larger investors to buy into the company’s stock. As a result, this is one firm that investors may want to consider for their portfolios.

EastBridge Investment Corp. (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. stock exchanges. With clients like Tsingda Education and Wonder Education, the company is uniquely positioned to profit from China’s growing education sector.

Wonder Education Prepares to IPO in 4 to 6 Months

Wonder Education recently received SEC clearance for its registration filings and will be moving towards an initial public offering and AMEX listing in the very near future. The company has a roadshow planned for late-February or early-March to begin the IPO process, while it expects to be listed on an exchange and publicly-traded about 2 to 4 months after the roadshow is complete.

During the fiscal year 2010, the education company reported revenues of more than $12 million, versus $10.8 million in 2009, and net income of almost $5 million, versus $2.6 million in 2009. Meanwhile, the firm’s recent decision to target the automotive education industry could pay off down the road as the Chinese public embraces driving and the auto sector matures.

Tsingda Education Gears Up as Next IPO in Pipeline

Tsingda Education recently completed filing three registration statements with the SEC – for founding shareholders, private equity investors and the general public – and anticipates the first of them to be approved in the very near future. Once approved, the company will complete the IPO process and apply for listing on the AMEX stock exchange, which it expects to take 2 to 4 months after clearance.

Meanwhile, the education provider is also expected to surpass both its revenue and net income targets for 2010. Management previously forecasted revenues of $28 million and net income of $12 million for 2010, which represents growth of almost 100% year-over-year. As a result, the firm could see a healthy earnings multiple when it is listed and publicly-traded in the near future.

Strong Potential to Unlock Tremendous Value

With companies like New Oriental Education (NYSE: EDU) trading at nearly 50x earnings, EastBridge’s clients could see some significant upside from their IPOs later this year. Meanwhile, the company also has plans to uplist its own stock to the AMEX exchange in order to attract institutional investors, avoid market maker manipulation and improve its brand recognition.

Looking ahead, the company is also working to build its pipeline and assist a number of other clients. For instance, it is in the process of auditing and registering Arem Pacific, Dwarf Technologies and Alpha Green Technologies, while also working with other companies like Stray Arrow to raise capital and seek a listing and IPO in the future. Combined, these activities could unlock significant near-term value.

EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. stock exchanges. As its client Wonder Education completes its registration filings with the SEC, the company appears to be well-positioned to profit.

A Solid Performer in China’s Education Industry

Wonder Education owns and operates seven separate vocational training schools in seven provinces in China, with a core business of providing IT education. With the rapid urbanization of China, many analysts expect to see tremendous growth moving forward.

According to the Ministry of Education in China, there are 1,816,878 graduates of IT departments and 1,710,832 in-school students studying IT at vocational education schools in 2006. Meanwhile, the IT industry has growth to $51.9 billion and represents 0.8% of the GDP.

Many experts believe that this demand will only increase as a significant number of rural laborers move to larger cities. In fact, some estimates suggest that between 15 and 20 million people will make the switch during the next 5 to 10 years.

Wonder Education Files S-1 with SEC

Wonder Education’s most recent S-1 registration filing with the U.S. Securities and Exchange Commission (SEC) indicates that it plans to register 899,875 shares, which will be distributed to over 1600 EastBridge shareholders after SEC clearance is obtained.

According to the same SEC filing, EastBridge owns 3.4 million shares, or approximately 17% of the company’s common stock. The 899,875 shares being registered are slated to be distributed as a dividend to its shareholders.

EastBridge will assist Wonder in conducting a private placement capital raise to create a market price for its stock and then assist Wonder to become listed on a U.S. stock exchange during 2011.

A Significant Opportunity for Shareholders

With a pending IPO that could generate some $5.4 million in value for EastBridge shareholders, many investors may want to take a closer look at this undiscovered company. Its equity stakes in other companies, as well as future dividends, may justify a higher share price as it executes its plans.

Click here to learn more: http://www.accelerizefinancial.com/eastbridge.html

EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. stock exchanges. As its client Tsingda Education completes its registration filings with the SEC, the company appears to be well-positioned to profit from the proceeds.

Tsingda Files S-1 Registration Statement

Earlier this year, Tsingda Education filed its S-1 registration statement with the SEC indicating that it intends to offer 8,079,740 shares of common stock at about $1.60 a piece for proceeds of $16,287,584. After the initial public offering takes place, the company will have approximately 10,179,740 shares outstanding and will be trading on the AMEX stock exchange.

With pre-tax net income of $7,120,130, or $0.69 per share, in 2009, the company will trade at just 2.31x its trailing 12-month earnings, if it IPO’s at $1.60 per share. Meanwhile, the company disclosed generating $18,732,271 in revenues and pre-tax net income of $10,897,164 during the nine months ended September 30, 2010, representing significant year-over-year top and bottom line growth.

EastBridge’s Significant Stake in Tsingda

EastBridge owns some 2,079,740 shares of common stock, according to Tsingda’s latest S-1/A filing with the SEC, valued at approximately $3,327,584 at the $1.60 per share proposed offering price. With a market capitalization of just $8.88 million, the stock appears to be significantly undervalued given this equity and the potential for near-term appreciation with its low multiple.

Assuming Tsingda eventually trades at the same multiple as China Education Alliance (NYSE: CEU), the stock could be worth $3.26 per share based on its trailing 12-month earnings alone. Ultimately, this could equate to EastBridge’s ownership registering in at closer to $6,779,952 in value, representing more than 75% of its current market capitalization.

EastBridge Shareholders are poised to Profit

Under its unique business model, EastBridge intends to offer 300,000 shares of its 2,079,740 shares to its own investors as a dividend on a pro-rata basis, according to Tsingda’s latest S-1/A registration statement. With approximately 148 million shares outstanding, this means that its shareholders will be entitled to approximately one share of Tsingda for every 493 shares of EBIG they own.

At a proposed offering price of $1.60 per share, the dividend amounts to approximately $0.003 per share for shareholders. However, if the stock appreciates to industry multiples of around $3.26 per share, as suggested earlier, the dividend could be worth closer to $0.006 per share – or an 11% yield. Meanwhile, EastBridge’s shares will benefit from the sale of the remaining 1.8 million shares.

In the end, Tsingda Education’s move to complete its registration filings and undergo an initial public offering could pay big dividends to EastBridge shareholders, making the stock one worth considering for growth investors seeking exposure to Asia’s fast growing economies!

Click here to learn more http://www.accelerizefinancial.com/eastbridge.html

EastBridge Investment Group, Inc. (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. exchanges. In exchange, the company receives a combination of cash fees and equity compensation that typically amounts to a 10-20% equity stake.

China’s Education Market is Booming

China’s economy may be showing signs of a slowdown amid government measures to curb lending and deflate possible asset bubbles like the housing market in Beijing. However, the domestic economy continues to boom as the middle class rapidly expands in terms of both wealth and population. As a result, there are many companies that could stand to gain significantly.

The boom has created enormous demand for educational services from rural populations that have migrated into the metropolitan cities. Currently, education accounts for approximately 11% of the average household spending, while the government has already increased its spending on education from 2.8% of GDP in 2006 to more than 4% in 2010, according to Wall Street Research.

Tsingda is in the Final Stages of an IPO

Tsingda Education recently filed an updated S-1 filing with the SEC, indicating that it intends to offer 8,079740 shares of common stock at an undisclosed date. The proposed maximum offering price has been set at $1.60 per share, while the company has approximately $30,878,777 in net assets that should create a book value of around $1.31 per share, as of September 30, 2010.

The company also revealed that it generated revenues of $14,650,863 in 2009, which represented a 101% increase from its 2008 revenues. Meanwhile, its net income was $7.1 million, or a 77.9% increase over its year-ago results. Finally, its six-month results are also tracking 20% high on the top-line and 41.4% higher on the bottom-line for the first half of 2010.

Looking at the Significant Value Ahead

With significant revenue growth and a strong book value, investors are eagerly looking forward to Tsingda Education’s initial public offering. And with a 10-20% equity stake that could be worth at least a couple million, EastBridge Investment Group’s (OTC-BB: EBIG) shareholders are also looking forward to seeing significant value being unlocked in their holdings.

Investors looking to capitalize on this initial public offering may therefore want to consider purchasing EastBridge’s stock, which trades with a market capitalization of just $7.84 million, despite having eight other high-growth Asian IPO candidates in its pipeline!

EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. exchanges, while also making valuable introductions to investment bankers and accredited investors. In exchange, the company receives cash and equity compensation that typically amounts to a 10% to 20% interest ahead of the initial public offering.

EastBridge Signs Agreement with Dwarf Technology

Earlier this month, EastBridge announced that it executed a listing agreement with a new client, Hangzhou Dwarf Technology Ltd, whose main business is located in Hangzhou, China. The company will assist the client with becoming listed in the U.S. as soon as practical. According to the 8-K filings associated with the agreement, the company will own a 15% stake in the newly public company.

Under the terms of the agreement, the new stock will be listed on the OTC-BB stock market and, after its net income exceeds RMB 25 million, will be submitted for listing on the Nasdaq, NYSE or Amex markets. Meanwhile, EastBridge will also receive a cash payment – in addition to the equity – in consideration for providing its consulting services.

E-Commerce is Rapidly Expanding in China

With more connected citizens than anywhere else in the world, China is a premier market for e-commerce retailers and auxiliary companies. Recently, the China Internet Network Information Center estimated that some 384 million consumers were connected to the internet by the end of 2009, representing a 28.9% increase from 2008 levels.

At the same time, China’s online retail sales rose to $36.6 billion in 2009 as an increasing number of consumers feel more comfortable shopping online. Meanwhile, business-to-business trade is also increasing as exports continue to grow and China’s domestic economy expands into the rural areas. As a result, companies like Dwarf Technology may be well-positioned moving forward.

Dwarf Technology is Poised to Capitalize

Dwarf Technology is a leading internet search provider for businesses, supporting multiple network technologies simultaneously, including telephony, text messaging and the internet. The company has developed innovative technologies to provide a unique platform for business-to-business trade (B2B) and online retail, and is well-positioned to grow in this emerging industry.

Investors looking to capitalize on Dwarf Technology may want to take a look at EastBridge Investment Group (OTC-BB: EBIG) as a way to potentially obtain an equity stake in Dwarf at pre-IPO multiples. If successfully brought to market, this stake could result in significant value for shareholders.

China Small Caps Take Off Higher

Chinese small cap stocks have surged dramatically higher over the past year, as evidenced by strong performance of Claymore’s China Small Cap ETF (NYSE: HAO). The index has surged more than 20% over the past three months as investors have sought ways to move capital out of underperforming industrialized nations into high-growth countries like China.

Unfortunately, this move has come at a price and many experts now warn that these countries may be overvalued with smart money having moved in much earlier. As a result, savvy investors may want to consider alternative locations to put their investment dollars, which offer more reasonable valuations and a way to capitalize on only the highest growth stocks in the country.

EastBridge Offers a Unique Model

EastBridge offers investors a unique business model that involves obtaining a 10-20% equity stake in high growth Asian companies at a pre-IPO valuation. The company obtains this equity by providing financial services designed to help the clients IPO on U.S. exchanges. At that point, the company can then either distribute the equity as a dividend or sell it on the open market to unlock value.

Currently, EastBridge has ten IPO clients ranging from Tsingda Education – a rapidly growing for-profit education company with nearly $15 million in revenues last year – to Jinkuizi Science – a manufacturer of environmentally-safe fertilizers in China and Southeast Asia with revenues of $2.45 million last year. At various stages in the IPO process, the company hopes to build significant value over time.

The Right Place at the Right Time

EastBridge has developed a strong pipeline of Asian IPO clients at just the right time, given the significant interest in Asian growth and the dramatic increases in investment capital projected over the coming years due to monetary policy decisions. With the stock still relatively undiscovered, investors will want to take a closer look at EastBridge (OTC-BB: EBIG) sooner than later.

While many investors are aware of Chinese hospitality stocks like Home Inns & Hotels Mangement Inc. (Nasdaq: HMIN) and China Lodging Group, Ltd. (Nasdaq: HTHT), few are aware of EastBridge Investment Corp (OTC-BB: EBIG), which offers exceptional exposure to China’s rapidly growing middle class and business environment through its equity stake in StrayArrow and other clients.

China’s Growing Middle Class Population

With China’s growing middle class and rising income levels, opportunities in the country are shifting from a source of cheap manufacturing and labor to a lucrative domestic marketplace. The share of the Chinese population earning between $6 and $10 dollars per day surged 4.8% to 25.5% between 1995 and 2007, while the trend appears to be continuing moving forward.

“As developing Asia’s people secure their middle class status, its emerging consumers are very much expected to become the next global consumers and assume the traditional role of the U.S. and European middle classes,” reads a recent Asian Development Bank report. These trends project that Asia’s middle class will become the single biggest group of consumers in the world, the report added.

StrayArrow is Poised to Benefit from the Move

StrayArrow International Limited, a client of EastBridge Investment Corp (OTC-BB: EBIG), is poised to benefit from this growing middle class. Operating very high end restaurants, nightclubs, ultra lounges, hotels and boutique retail merchandising, the firm is well-positioned to benefit from increasingly wealthy consumers with a broad portfolio of properties.

Mr. Denis Werner, Chairman of SAIL, who has lived in Shanghai for over eight years, commented, “All the current independent economic and market analysis point to the enormous growth that will occur in China for luxury goods and services from a current base of $25 billion to $200 billion (US dollars) by 2015. We have the knowledge, experience and credibility to succeed and to expand our business model across Greater China.”

Conclusions

With China’s emerging middle class population and demographics, companies focused on domestic consumerism could see significant growth over the coming years. EastBridge Investment Corp’s (OTC-BB: EBIG) portfolio of clients, like StrayArrow, are among these well-positioned companies, which bodes well for the financial service company’s own shareholders.

While many investors are familiar with high-flying Chinese agricultural stocks like China Agritech Inc. (Nasdaq: CAGC) and Green Agriculture, Inc. (NYSE: CGA), few are familiar with EastBridge Investment Corp, which offers exceptional exposure to China’s growing agricultural industry through its equity stakes in two client companies that it is helping to access the U.S. markets through IPOs.

China’s Compelling Ag Economics Drive Growth

With the largest population in the world undergoing rapid urbanization, the importance of agriculture in China’s society is difficult to overestimate. The country is already the largest producer and consumer of fertilizers, consuming in excess of 60 million metric tons per year – or a full one-third of total global consumption – in order to meet increasingly higher demand for crop yields.

China’s consumers are also increasingly looking towards higher-end food products as personal and household incomes continue to rise. Credit Suisse’s China economist Dong Tao believes that the share of China’s private consumption to GDP will reach 23.1% in 2020, surpassing the U.S. ratio of 22.9%. With food products accounting for a large portion of personal spending, investors are bullish on the sector.

EastBridge Offers Inexpensive Access to Two Ag Players

EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that provides Asian companies with access to U.S. markets, while consistently maintaining an inventory of several Asian IPO clients. In exchange for these services, the company receives a 10% to 20% equity stake in their clients ahead of the initial public offering, enabling its own shareholders to invest in pre-IPO multiples.

Heyuan Dafeng Animal Husbandry Company Limited is a “green farming” business focused on premium hogs, feeds and organic fertilizer production. The EastBridge client could benefit handsomely as pork is among the most-consumed meats in China, while the market for high-yield organic fertilizers continues to grow at a rapid pace in order to meet end-market demand.

Jinkuizi Science and Technology Company is another EastBridge client that manufacturers environmentally-safe fertilizers in China and Southeast Asia. As farmers are looking to avoid chemical fertilizers that can damage soil over the long-term, Jinkuizi provides a natural alternative that can both help improve crop yields and protect the environment for the future.

Conclusions

EastBridge Investment Corp (OTC-BB: EBIG) continues to work to unlock value for its shareholders by helping its clients access liquidity in the U.S. markets. With its pre-IPO multiple equity stakes in clients, like these in the agricultural industry, the company is well-positioned to grow its value and deliver exceptional returns to its shareholder base.

SunSi Energies, Inc. (OTC-BB: SSIE) is a development-stage company focused on acquiring trichlorosilane (TCS) production facilities in China. By offering the raw material used in photovoltaic solar modules, the company aims to become the only TCS pure play listed on a stock exchange, offering investors exposure to the top of the solar value chain.

Solar Demand Heats Up in Asia

Solar demand is starting to heat up in Asia as several countries press on to meet renewable energy standards and spur economic growth. China-based solar manufacturers like JA Solar Co., Ltd. (Nasdaq: JASO) have already stated that they are experiencing huge backlogs in orders for products to be delivered in 2011 after signing supply agreements for more than 500MW of capacity.

To meet this demand, solar module production in countries like China and Taiwan are expected to increase 48% to 5,515MW in 2010. And while prices are expected to fall 11% to $1.45 per watt by the fourth quarter, polysilicon remains the most expensive component for traditional solar power, which means that TCS – used in its production – remains a high margin product.

SunSi Ramps Up TCS Production Facilities

SunSi Energies, Inc. (OTC-BB: SSIE) has already set its plan in motion to become a leading supplier of TCS to China’s solar industry – which produces about half of the world’s modules. Earlier this month, the company completed its due diligence of the Zibo Baokai Commerce and Trade Co., Ltd. acquisition started in May 2010 and is now waiting for issuance of the business license to start production in China. The company plans to receive the license from the Chinese government this month and begin generating revenues ranging from $1.0 – 1.5 million per month.

Meanwhile, SunSi Energies is also pursuing a second target with 20,000 metric tons per year of production capacity. The company signed a letter of intent with Wendeng He Xie Silicon Co. in late August that would give it a 60% ownership stake in the firm. Along with an existing 40% shareholder, the firm will increase its total capacity to 60,000 metric tons per year by January 2012. The transaction itself is expected to close within three months after due diligence and a full audit.

Conclusions

SunSi Energies, Inc. (OTC-BB: SSIE) is well-positioned to profit from growing demand in China for TCS from module manufacturers. With many of these companies projecting a 48% increase in demand in 2010 and already-sold-out order books for 2011, investors can expect demand to remain robust as the company ramps up its production through two acquisitions that are in the final stages.