Jade Art Group Announces Initiation of Coverage By Murphy Analytics Research Group
Jade Art Group Inc. (OTCBB: JADA), a seller and distributor of raw jade sourced from the SheTai Jade mine in China, today announced that Murphy Analytics, a fee-based equity research group, has initiated coverage on Jade Art Group with an “Outperform” rating.
In the report entitled, “Gold Has a Value; Jade is Invaluable,” Murphy Analytics discussed such investor highlights as Jade Art Group’s exclusive distribution right with XiKai Mining, which has China’s largest high quality jade reserves. The report also reviewed industry drivers, including the increasing demand for jade throughout China.
According to analyst Patrick J. Murphy, CFA, and author of the report, much of the Chinese economy’s increasing demand for jade is driven by the rapidly growing affluence of the middle and upper classes whose rising incomes make “treasures such as jade not only desirable but obtainable by an ever-expanding market.”
These are among the factors substantiating the Company’s 2008 guidance of $61- $65 million in revenues, according to the report.
“With favorable production and product cost agreements in place, JADA has created a highly profitable distribution business with the potential to generate as much as $40 million in net income in calendar year 2008, or approximately $0.50 EPS,” the report stated. “At a price of $4.75 on June 25, 2008 and a price of $3.00 on July 2, 2008 Murphy Analytics sees the potential for significant price appreciation for JADA and is initiating coverage on JADA with an Outperform rating.”
“We are very pleased with the quality of Murphy Analytics research coverage,” commented Mr. Hua-Cai Song, CEO of Jade Art Group. “The report provides serious investors with an in-depth understanding of our Company and the jade industry in China.”
The report is available for review free of charge at http://www.murphyanalytics.com/uploads/JADA_Initiation. Jade Art Group has engaged Murphy Analytics to provide research coverage under the compensation terms described below.
About Jade Art Group Inc.
Jade Art Group Inc., through its wholly owned subsidiary, Jiangxi SheTai Jade Industrial Co., Ltd., sells and distributes raw jade sourced from the SheTai Jade mine throughout China, with uses ranging from decorative construction material to high-end jewelry. This mine’s operating capacity is estimated to reach 40,000 tons and it contains one of the largest jade reserves in China. The mine is owned by XiKai Mining, with which Jade Art Group signed an agreement to acquire exclusive distribution rights to sell 90% of the SheTai Jade produced from the mine for the next 50 years. According to a survey report issued by the Inner Mongolia Geological Institution, the mine has proven and probable reserves of approximately 6 million tons, or approximately $16 billion worth of jade at current market rates of $2,750 per ton. Several national jade experts have noted the high quality of SheTai Jade as compared to the other existing varieties of Chinese jade.
For more information, please visit: www.jadeartgroupinc.com
About Murphy Analytics
Murphy Analytics provides company-sponsored research coverage on small-cap stocks in a broad range of sectors. Murphy Analytics was paid $9,000 by Jade Art Group in advance of the creation of this report. For additional information, please visit www.murphyanalytics.com. The views expressed in the report on Jade Art Group accurately reflect the analyst’s personal views. Neither the analyst’s compensation nor the compensation received by Murphy Analytics is in any way related to the specific ratings or views contained in this research report.
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of, and increases in, production, projected volume of customer orders, performance by customers under existing and future agreements, cash flows and values, statements relating to the continued advancement of Jade Art Group’s projects and other statements which are not historical facts. When used in this document, the words such as “could,”"plan,”"estimate,”"expect,”"intend,”"may,” and similar expressions are forward-looking statements. Although Jade Art Group believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, those set forth in our reports filed with the Securities and Exchange Commission, together with the risks discussed in our press releases and other communications to shareholders issued by us from time to time, such as our ability to raise capital as and when required, the availability of raw products and other supplies, competition, the costs of goods, government regulations, and political and economic factors in the People’s Republic of China in which our subsidiaries operate.