Newsletter

Good morning,

The day is already underway and as time is always a factor, let’s jump right in:

Today’s play is QKLS

  - QKLS has 54 stores

  - Last year QKLS posted revenues of more than 274Mln Dlrs

  - Last year QKLS posted gross profit of over 46Mln Dlrs

  - First half of 2015 revenues topped 148Mln Dlrs

  - First half of 2015 gross profits were more than 24Mln Dlrs

QKLS closed Wednesday at 1.26.

QKLS closed Wednesday with a market value of just 1.9Mln Dlrs.

Just to be clear, the Company does around 300Mln Dlrs a year in revenues,

yet its market value is less than 2Mln Dlrs.

QKL Stores, Inc. (QKLS)

Website: www.qklstoresinc.com

Yahoo: Quote

A Brief History:

Created in 1998, QKL Stores is the largest retail company in Heilongjiang Province. QKLS has 54 stores in Northeast China and Inner Mongolia area, with formats of Hypermarket, Supermarket and Department Stores.

QKL Stores was awarded “Top 10 Potential Enterprises” in 2004, joined IGA in 2005, listed in America on April, 1st 2008, and up-grade to NASDAQ in October 21, 2009.

“Fresh, Convenient, Inexpensive and Quality”:

QKLS offers quality products at low prices. Based on its well-known fresh products and extensive non-food items, QKLS gains compliments from both suppliers and customers.

With its overseas financing capability, qualified personnel and resources and unique marketing position, the Company remains confident in its expansion strategy and looks forward to furthering its success.

QKLS looks to become a world-class multi-format retailer that generates sustainable sales and profit growth.

QKLS is confident it will reach the Company’s vision to become the No.1 multi-format retailer in Northeast China.

Conclusion: By The numbers:

I’ll list this again:

• Store Locations: 54
• Last year QKLS posted revenues of more than 274Mln Dlrs
• Last year QKLS posted gross profit of over 46Mln Dlrs
• 2015 first half results: revenues top 148Mln Dlrs with gross profits of more than 24Mln Dlrs

These are not normal numbers for a company that is currently just north of $1… and, in fact, QKLS was not always at such a low level:

  - The 52-week high is 4.19

  - At the beginning of this summer QKLS was as high as 3.94

Yet if we look back even further, QKLS was down to 1.43 at the end of last year… meaning it made one heck of a nice run in just a few months.

In fact, looking at history one thing is very clear: QKLS has a volatile past filled with large runs and large dips.

Recently, the Company dipped to its current $1.26 level. Where will it go from here?

A bounce could translate to enormous percentages.

Since the beginning of this month it has plateaued after its recent drop and its RSI of 39 indicates that it is currently oversold.

So let’s recap:

  - very impressive numbers

  - an oversold RSI

  - recent stability

  - support activity

Now that sounds like the kind of situation that intrigues me.

As such we’re going to be keeping a very close eye on QKLS today.

Have it on your Watchlist and keep a close eye on it this morning… get started researching QKLS right away.

Remember, we always encourage you to do further research. Never take our word for it, read our disclaimer to see why, and of course always consult a professional.

It is important that you realize the highly speculative nature of this situation.

Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.

Enjoy your morning,

Q

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