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EastBridge (OTC-BB: EBIG) Offers Unique Ways to Gain from Asia’s Growth

EastBridge Investment Corp (OTC-BB: EBIG), a financial services company that provides Asian firms with access to U.S. markets, with clients similar to strong performing stocks like Chinacast Education Corporation (Nasdaq: CAST) and Home Inns & Hotels Management Inc. (Nasdaq: HMIN), offers investors a unique way to capitalize on Asia’s rapid growth prospects.

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.

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