Contact Information: Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com 214-722-3060
China Crescent Enterprises, Inc. Anticipates Potential Price per Share Increase in Reaction to Analyst Report Coverage of Majority Shareholder and 'Buy' Rating
| Source: China Crescent Enterprises, Inc.
DALLAS, TX--(Marketwire - February 23, 2010) - China Crescent Enterprises, Inc. (OTCBB : CCTR )
today announced a potential price per share (PPS) increase in reaction to
an independent analyst report on the Company's majority shareholder with a
'buy' rating and target PPS recommendation nearly fifty times higher than
the current PPS. China Crescent's majority shareholder owns and operates
additional systems integration businesses, similar to China Crescent, in
other emerging economic markets around the world. The independent analyst
valued the majority shareholder on a discounted cash flow basis and in
comparison to similar companies. Based on an equally weighted compilation
of the various valuation methods, the analyst concluded that the PPS of the
majority shareholder was substantially undervalued.
"China Crescent contributes almost half of the revenue consolidated into
the revenue of its majority shareholder," said Philip Verges, founder and
board member of China Crescent and chairman of the majority shareholder.
"China Crescent realized record net income through the first three quarters
of 2009 and I anticipate China Crescent will report record net income for
all of 2009 in its upcoming annual report. Similar to the price per share
performance of its majority shareholder, it is my opinion that the price
per share for the common stock of China Crescent is undervalued in
comparison to the Company's fundamental financial performance. An
independent analyst report on the majority shareholder that takes into
consideration the operations of China Crescent most likely indicates that
the price per share of both China Crescent and its majority shareholder do
not reflect either company's underlying fundamental financial values."
China Crescent is scheduled to conduct a Webcast this Friday, February 26th
to review the Company's updated strategy to increase revenue and profits
featuring an expansion into India. The Friday Webcast is also meant to
provide a review of China Crescent's PPS performance in relation to the
recent analyst report coverage on the majority shareholder.
A link to the Webcast will be made available on the Company's
website www.chinacrescent.com and emailed to the corporate email database
upon release Friday.
If you would like a copy of the Analyst Report mentioned above, please
email ir@chinacrescent.com.
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About China Crescent Enterprises, Inc. (www.chinacrescent.com)
China Crescent is a systems integration service provider that markets
technology outsourcing services in China including the sale and service of
brand name technologies such as Microsoft, Oracle, Cisco, IBM, HP and Dell.
Following a recent strategic acquisition, the Company has expanded its
business line to include original design manufacturing (ODM). China
Crescent reported over $40 million in profitable revenue in 2008. The
Company has reported record profits through the first 9 months of 2009 and
anticipates reporting record profit in the 2009 annual report. Management
has set a goal of reaching $100 million in revenue in 2010.
Headquartered in Dallas with operations in Shanghai, Shenzhen, Dalian and
Beijing, China Crescent bridges the gap between global business cultures to
assist clients worldwide realize the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists clients in localizing products and services to realize the
tremendous growth potential available by expanding into the Chinese Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause China Crescent's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.