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Global-Tech Appliances Inc. (GAI) Enters Profit Era

Business results for the Most Recent Quarter indicate that this stock has come of age. It has earned net income of 2 cents a share compared to a loss for the same period last year. Sales have increased by 65%, which is most unusual for the Appliance & Tool Industry at this time. There are three reasons why investors can look forward to the encouraging results for the quarter developing into a steady trend.

First, the company is based in Hong Kong, though its stock trades in the United States. The company has the geographical advantage of being at the center of the booming markets of China and the rest of the Asia Pacific Region. The management has been careful to establish a global presence, and can look forward to balanced growth in all major world economies.

A second source of strength is the wide and flexible distribution network at its disposal. The company enjoys strong support from large-volume resellers. It also occupies valuable shelf-spaces in specialized outlets for electrical and electronic goods and appliances. The company envelops retail chains, department stores, and direct marketing chains in making the entire product range available for customers everywhere.

The third strength relates closely to the second described above. The company sports a vast product range, and keeps it up-to-date as well. It offers everything from cleaning appliances to sophisticated camera modules. The product range is replete with all major categories in the company’s line of business. This positions the company very well in terms of making best use of the intricate distribution network. Distributors and resellers also back the company because they can source such a complete and modern product range.

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