Barely a month after reporting a 41% increase in revenues, ChineseInvestors.com Inc (OTCMKTS:CIIX) is yet again in the spotlight. The online financial information provider has caught the attention of investors on announcing a new CBD Hemp wine line. The positive developments are the latest catalysts that continue to strengthen the upward momentum.
ChineseInvestors Price Analysis
The stock is already up by more than 40% for the month, after bottoming out, on underperforming in the first half of the year. Since August, the stock has continued to climb higher with pullbacks, from higher highs, acting as buy opportunities from where buyers have come in and pushed the stock higher.
ChineseInvestors has since emerged as a reliable pullback play, given the rallies that have come into play on every minor correction. After rallying to the $1.30 level, the stock has pulled back once again in what appears to be investors taking profit after the recent blockbuster run.
The stock is currently flirting with a critical support level at the $0.90 mark, above which it remains a solid buy. All indication is that the stock will continue powering high as investors’ confidence in the stock continues to grow. A breach of the $0.88 level could see the stock plummeting to the $0.64 level, the next substantial support level.
ChineseInvestors is a provider of web-based real-time financial information. The company targets the Chinese population in the U.S as well as internationally when it comes to matters investment. In addition to providing financial information, the company has also expanded its wings into the cannabis space through its wholly owned CBD Biotechnology Co subsidiary.
Why is ChineseInvestors Surging
A high turnover of traded shares follows the announcement of positive financial results for the year ended May 31, 2018. ChineseInvestors also provided a positive outlook for the fiscal year 2019, for its financial services and consumer products units, which appears to have gone well with investors.
The company reported a 41% s year over year increase in revenues that came in at $377,719. ChineseInvestors attributes the increase to consumer product sales, through its ChineseHempOil.com Inc. and CBD Biotechnology Co., Ltd subsidiaries.
During the quarter, the company also launched its first-ever hemp-infused skincare line, CBD Magic Hemp Series through CBD Biotech China. ChineseHempOil its other subsidiary also launched a domestic private label hemp oil line.
In pursuit of additional streams of revenues, ChineseInvestors diversified its operations by also venturing into the cryptocurrency business. The company has teamed up with Wall Street Multimedia to produce daily cryptocurrency video newscast for targeting Chinese investors. It also launched a new paid cryptocurrency subscription service.
It also expanded its subscription services and educational products.
“At the same time, we expanded our subscription services and educational offerings to cover the cryptocurrency market and have plans to establish a cryptocurrency ATM network and a domestic online coin-to-coin exchange for Chinese cryptocurrency investors,” said Mr. Warren Wang, CEO of ChineseInvestors.com.
New Product Line
Even as ChineseInvestors continues to pursue opportunities on the financial services and cryptocurrency sector, it also maintains a watchful eye on the CBD sector. The company has already announced plans to launch a CBD Hemp wine as it moves to strengthen its prospects in the multi-billion sector.
The upcoming private brand hemp-infused rice wine is for hemp enthusiasts a niche market that the company plans to target. In addition to the Hemp wine, the company also plans to explore hemp products targeting skincare and alcoholic beverage products. The company expects the new products to act as a strong sales driver going forward.
ChineseInvestors is in a period of rapid growth depicted by a 41% revenue growth as well as expansion into niche markets. Equity research firm SeeThruEquity has already initiated coverage of the stock with a share price target of $3.75.
A $3.75 share price target underlines the company’s growth potential given initiatives in the CBD marketplaces, as well as expansion into the cryptocurrency sector. The financial services business unit is also performing well, which adds to the growing list of fundamentals that continue to strengthen investors’ confidence.
The stock spiking higher in recent months is a testament of growing investor confidence about its long-term prospects. That said, the stock should continue skyrocketing with pullbacks acting as buy opportunities going forward.
We will be updating our subscribers as soon as we know more. For the latest updates on CIIX, sign up below!
Disclosure: We have no position in CIIX and have not been compensated for this article.