From: The Serious Speculator
Twenty five years ago, I can remember discussing the markets with a very astute and successful investor. He possessed a wisdom that only comes from years of experience. I was telling him about a speculative company that I thought was the hottest thing ever and how everyone was getting involved and were going to be rich.
He listened patiently while I went through my pitch then calmly asked me, “During the gold rush, thousands flocked to the gold fields to strike it rich but, aside from a very few miners who got lucky, do you know who made a fortune yet avoided the limelight?” I thought about it and came up blank so he smiled and told me, “It was the guy that was selling picks and shovels.”
Using that analogy, Chang-On International (OTCBB: CAON) is the proverbial pick and shovel company in the midst of the construction gold rush in China. Construction is booming in China big time. US government statistics reveal that “Construction spending in China increased 165% in the last four years, according to the National Bureau of Statistics of China, and is still expanding at 25% annually.” Source: BuyUSA.gov. At the same time, the Chinese government is putting an emphasis on the greening of the construction industry, both in the quality of construction and construction methods.
A key component in construction projects are the tools used to manufacture components from pipes to concrete walls and water tanks. Most of these components share one thing in common. They all need a mold or “formwork” to be made. In China traditionally these molds have been made out of bamboo or some other wood or steel. The problem with these materials are that steel is too expensive and needed elsewhere and wood molds don’t last very long. Enter Chang-On International.
Chang-On International has developed its own proprietary technology which allows them to build these molds out of a special resin composed primarily out of recycled plastic and fly ash, a byproduct of burning coal. The result of this amazing development is a mold that is less expensive than its counterparts, lasts longer than wood, is lighter than steel and seals better making for a higher quality finished product. What’s more, being made entirely out of recycled materials, Chang-On’s products satisfy the Chinese Government’s mandate for green construction.
Led by an experienced management team headed by Guomin Li, 47, a pioneer in the field of manufacturing building materials from waste products, Mr Li has been the Chairman of Harbin Hongbo Environment Protection Material Ltd since 2004, now the operating subsidiary of Chang-On International. Over the last 4 years, Mr. Li and his staff of researchers have developed and perfected the proprietary technology that is the basis of their newly implemented marketing strategy.
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