ORLANDO, Fla., May 26, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has issued a research update on NIVS IntelliMedia Technology Group, Inc. (NYSE Amex:NIV), an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products.
Peter Heise, RedChip Research Analyst, reported:
"NIV overcame a seasonally weak first quarter to report record revenues and higher than expected cell-phone sales; however even impressive operating results were not enough to prop up this profitable Chinese small-cap as the stock lost nearly 20% in the two weeks following the 1Q10 earnings conference call.
"Some of the share price decline can be related to the strong correlation (0.89) between NIV and the Shanghai Composite Index (SSE) which also fell about 20% over the last month triggered by the Chinese government's actions to cool the housing market, which then was further compounded by fears over Greece's potential default negatively impacting Europe, and then spreading to the rest of the world.
"There is some justification of the market weakness from Europe's trouble spreading to the global economy, but we do not believe it justifies the size of the drop the Shanghai index just experienced, especially not for the drop in NIV stock. NIV has relatively little exposure to European market sales and to North America. We believe that NIV will not have an issue growing revenues significantly this year and maintain our Buy recommendation on the stock," Heise concluded.
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To learn more about NIVS IntelliMedia Technology Group, Inc., visit http://www.redchip.com/visibility/investor.asp?symbol=NIV
About NIVS IntelliMedia Technology Group, Inc.
NIVS IntelliMedia Technology Group is an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products in China, Greater Asia, Europe, and North America. The NIVS brand has received "Most Popular Brand" distinction in China's acoustic industry for three consecutive years, among numerous other awards. NIVS has developed leading Chinese speech interactive technology, which forms a foundation for the Company's intelligent audio and visual systems, including digital audio, telecommunication, LCD televisions, digital video broadcasting ("DVB") set-top boxes, peripherals and more.
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 Beijing, China; Paris, France; and Seoul, Korea. 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™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™. 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 NIVS IntelliMedia Technology Group, Inc. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. 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. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. NIVS IntelliMedia Technology Group ("NIV") paid RedChip Visibility, a division of RedChip Companies, Inc., twenty-five thousand dollars for RedChip Visibility Program services, which included the preparation of this equity research report. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.