ORLANDO, Fla., Oct. 19, 2009 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has issued a research update on China Wind Systems, Inc. (OTCBB:CHWY), a company rapidly evolving into a major supplier of wind turbine components.
Rick Grubbs, CFA, RedChip Research Analyst, reported:
"On October 13, 2009, China Wind Systems completed a one-for-three stock split intended to position the Company for a move to a senior exchange. We think the NASDAQ is the market of choice for the Company and by splitting the stock the Company meets one of the NASDAQ listing requirements -- a stock price above $4.
"In addition, the Company has announced plans to expand its forged product facility in Wuxi City to include a new production line for the manufacture of electro-slag remelted (ESR) forged high-performance components for use in wind power turbines."
Grubbs continued: "Due to the stock split and the announcement of the ESR production line, we are adjusting our estimates for 2009 and 2010, as well as our price target. We have adjusted our revenue and cash flow targets to account for the ESR business. No impact on revenue is expected in 2009, but we begin to add revenue in late 2010.
"We are maintaining our 'Buy' recommendation and adjusting our 12-month price target to $11."
To receive a complimentary copy of the RedChip Visibility Research Note for CHWY, please visit: http://www.redchip.com/about/aboutmain.asp?page=vreport&reportid=195&from=pr10162009
To learn more about China Wind Systems, visit http://www.redchip.com/visibility/investor.asp?symbol=CHWY
About China Wind Systems
China Wind Systems, Inc. through its wholly owned subsidiaries, Wuxi Huayang Dye Machine Co., Ltd. and Wuxi Huayang Electrical Power Equipment Co., Ltd., is engaged in two business segments: the dyeing and finishing equipment segment, in which the Company manufactures and sells textile dyeing and finishing machines; and the forged rolled rings and electric power equipment segment, in which the Company manufactures and sells high-precision forged rolled rings for the wind power industry and other industries and manufactures specialty equipment used in the production of coal-generated electricity.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Paris and Qingdao, China. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV(TM), Social Media Services, and RedChip Radio(TM). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
The analysts contributing to this report do not hold any shares of China Wind Systems, Inc. ("CHWY"). RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. CHWY is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. CHWY agreed to pay RedChip Visibility a fee of fifteen thousand dollars in cash for RedChip Visibility Program services, which includes the preparation of the equity research report(s). The equity research report(s) are prepared for informational purposes only and are paid for by the company portrayed in the report. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of CHWY investor-related materials and radio programming. CHWY agreed to pay RedChip Companies, Inc., a fee of twenty thousand shares of Rule 144 common stock for the first three months of IR services; and an additional thirty thousand shares of Rule 144 common stock for twelve months of these services in addition to the aforementioned cash fee. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.