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Saturday, 12/09/2006 3:45:49 PM

Saturday, December 09, 2006 3:45:49 PM

Post# of 585
UPFS (previously UPRO). Recent reverse merger deal. My contest pick!

One of the early investors in AOB just filed a 13G on UPFS. http://sec.gov/Archives/edgar/data/1271940/000092242306001516/kl12005.htm MORE on them is detailed at the end of this post.

UPFS will most likely change the symbol as the company is to be called China Fire Protection Group, Inc.

As of 7/31/06 they had $31.5 million in signed contracts. They are doing about $30 million in revenue and are profitable. They estimate $39 million next year and $53 million the following year.

Current public float is miniscule, less than 100K. Until they have an effective registration of current inside shares, there is no stock around. If you decide to buy, don’t place market orders, you could get hurt.

Company Profile
• Founded in 1995 by Chairman, Gang Jin Li, Sureland (now UPFS)is headquartered in Beijing with more that 300 employees in 30 offices throughout China.

• No. 1 total solution provider for the design, development, manufacturing and sale of fire protection products and services to large industrial consumers in China.
• Sureland has developed a proprietary product line that addresses all aspects of industrial fire safety from fire detection to fire system control and extinguishing.
• The first company in China to leverage high technology for fire protection and safety products to premier clients in industries such as iron and steel, power generation, petrochemical producers, as well as, special purpose construction.
• Sureland has secured numerous major industry honors including; “Top Level Fire Prevention Facility Engineering Contracting Qualification” and “Top Level Fire Prevention Facility Project Design Qualification” amongst others.

• No. 1 total solution provider in industrial fire safety sector
A unique player, market leader and potential consolidator
• A niche sector with high entry barrier that provides exponential business growth opportunities and great margins
• Renowned high-end customer base
• Innovative R&D and patented products
• Editorial members in several national fire safety standards
• Well recognized brand name with numerous awards and honors
• Experienced management team with solid track record of building business and strong execution capability

Future Growth Strategies
• Enhance our leading market position in industries such as iron and steel, power, and petrochemical.
• Expand our business into other industrial sectors, such as transportation (subway and tunnel systems), marines, nuclear energy, and large open-space markets (exhibition halls, stadiums and theatres etc.)
• Expand our current product lines in industrial safety to include security and monitoring systems
• Focus on developing regional business by actively seeking acquisitions
• Further explore the international markets through OEM and distribution relationships.

Growth Driving forces
• China’s industrialization is driving high demand for industrial fire prevention and remediation systems
• Large market for existing structures with inadequate fire safety systems
• Increased government regulations
• Fire Services Law exacted in 1998
• Safety Production Law enacted in 2002
• Sureland’s Management Team is a key driver in the development of fire safety standards in the PRC. Due to this close working relationship to the government Sureland should benefit from stricter fire codes and enforcement.

From the following article: About 13G filer.
http://www.valuerichonline.com/mag/06summer/story.php?id=cover
Vision Capital Advisors differs radically from other PIPE investors, which have been known to bet against a company and make money on “shorting,” or wagering that the company’s stock price goes down.
“We earn more by betting on the upside, and everyone wins, not just the investor. If the stock doubles, we can make, for instance, 10 times our money, and the CEO and other shareholders might make multiples of that. Even retail investors win,” Benowitz says. “That makes us different from everyone else, because we’re helping companies navigate Wall Street, providing market support and helping the company find additional business and investors.”
Micro-cap and small-cap companies fascinate Benowitz because on Wall Street they are the classic underdogs. “If the company is IBM, everyone on Wall Street is on the company’s side,” he says. “A big investment bank can make $500 million on a $10 billion IBM bond offering. Those bankers won’t be bothering with this niche. So, what we do is help small companies by allying ourselves with them.”
What’s the potential downside? Vision bets with the company, and because they do not short, “We could lose all our money alongside of the company, so we’re very motivated for them to succeed. We’re revolutionizing the space by not being predators.”
Vision Capital also boasts a longer holding period than most investors in PIPEs. Vision generally holds its companies for one to two years, and often will re-up for additional financings.



disclosure: Obviously I am long the stock and intend to hold.


Signatures are so yesterday!

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