Our New Pick is: QKLS
Current Price: $0.46
Members,
Timing is crucial, so we ask that you immediately turn your attention to QKL Stores Inc. (QKLS).
Some of you may remember QKLS from the last time we alerted it on October 16, 2015.
On that day, shares of QKLS more than doubled in price, opening the day at $1.01 and hitting an intraday high of $2.10 per share for over +107% in realistic profit.
Prior to that, we alerted it on September 17, 2015, and watched it rally for over +86% in same days gains.
It's easy to see why we love QKLS so much....
This ticker is a virtual cash cow for day traders, and it has never looked as tempting as it does today.
At just $0.46 per share, QKLS is trading just 2-cents above its 52-week low.
We've already watched this stock double in price when it was trading for over a $1.00 per share.
Can you imagine the type of move its going to make from just $0.46?
QKLS has triple-digit percent, same-day gains written all over it.
We are urging all members to act fast, get it up on their trading screen and be ready to trade.
About the Company:
QKLS is the largest retail company in Heilongjiang Province of China.
QKLS has 51 stores in Northeast China and Inner Mongolia area with formats of Hypermarket, Supermarket and Department Stores.
QKLS was awarded “Top 10 Potential Enterprises” in 2004, joined IGA in 2005, listed in America on 1st April, 2008, and up-grade to NASDAQ in October 21,2009.
QKLS guarantees “Fresh, Convenient, Inexpensive and Quality” merchandise to all customers; we will do our best to offer quality products at low prices. Based on it's well-known fresh products and extensive non-food, QKL gains compliments from both suppliers and customers.
With the overseas financing capability, qualified personnel and resources and unique marketing position, QKLS remains confident in its expansion strategy and looks forward to furthering the company's success.
The company's vision is to be the No. 1 multi-format retailer in Northeast China.
Fourth Quarter 2015 Financial Results:
Revenue in the fourth quarter of 2015 decreased by 17.7% to $62.4 million from $75.8 million in the fourth quarter of 2014. Comparable stores are stores that were opened for at least one year before the beginning of the comparison period, or by October 1, 2014. Those 40 stores generated approximately $55.0 million in sales in the fourth quarter of 2015, representing a decrease of $10.1 million, or 15.6% compared with $65.1 million in sales in fiscal 2014. New store sales increased, reflecting the opening of 5 new stores since October 1, 2014. These stores generated approximately $7.4 million in sales in the fiscal 2015.
Gross profit decreased by 17.3% year over year to $10.5 million, compared to $12.7 million in the prior year period. Gross profit as a percentage of revenue for the fourth quarter of 2015 was 16.9%, compared to 16.8% for the fourth quarter of 2014. The change in gross profit was primarily attributable to net sales decreased by $13.4 million in fiscal 2015 compared to fiscal 2014.
Operating expenses increased by 24.4% to $30.6 million compared to $24.6 million in the prior year period. The change in operating expenses was mainly due to the increase in expenses, including salaries, utility and advertising in fiscal 2015. The increase was also due to a $5.0 million of long-lived asset impairment charges during fiscal 2015.
QKLS had a net loss of $18.3 million in the fourth quarter of 2015 compared with net loss of $14.7 million in the fourth quarter of 2014.
Mr. Zhuangyi Wang, Chairman and CEO, said, "As QKL expands its market presence in northeast China, we are uniquely positioned against our local competitors through our large product offering, strong supplier relationships, efficient distribution network and state-of-the-art IT system. We are comfortable with our opportunities in 2015 and believe we'll see an improvement in operating expenses and profit growth in coming quarters.
"As we advance into 2015, we expect to open one new supermarket this year. We maintain confidence in our strategy of strengthening our store presence in Tier 4 and 5 cities in northeastern China as well as in our core region of operation around Daqing where the majority of our older stores are based."
It appears that QKLS's 2015 decrease in revenues and sales can be attributed to the slowdown of the Chinese economy in 2015.
However, many economists are calling for a rebound in the Chinese economy by the end 2016.
We are anticipating a steep increase in sales and revenue for QKLS as the Chinese economy begins to recovery.
QKLS's poor Q4 performance has already been priced into the stock, and we see nothing but upside potential from the current share price.
It appears to be only a matter of time before QKLS ends this downtrend and is priced back above a $1.00 per share.
Technical Analysis:
As we mentioned above, QKLS has been a virtual cash cow for day traders.
We alerted it back on October 16, 2015, and watched it more than double in price from $1.01 to $2.10 per share, for over +107% in realistic profit.
Prior to that, we alerted it on September 17, 2015, and watched it jump from $1.26 to $2.34 per share, for over +86% in same days gains.
The stock has taken quite the beating lately, and is currently trading just 2-cents above its 52-week low of $0.44.
At $0.46 per share, QKLS has never looked so tempting.
A run-up back to $1.00 would equate to gains of +117.39%!
And given the high volatility of this stock, a move back to $1.00 is definitely a possibility.
Yahoo Finance lists QKLS's float as just 727K.
We did the math and that equates to just $334K worth of shares available to the public for trading.
Simply put, this stock could explode today, and traders who take action could see tremendous gains in a very short amount of time.
Can this proven winner once again deliver massive profits for traders? We think so!
Don't hesitate another second.
Put QKLS on your trading screen right now!
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
