There is still much wealth to be made in Asia -- a fact just pointed up more sharply in the last week by the events in Iceland, which have stunted commerce all through Europe. For a company to make inroads in China alone is enough of a coup, but to make conquests elsewhere in the Pacific Rim would almost guarantee success for that company’s products and its investors.
So it was positively eye-catching in the third week of April when San Francisco-based IA Global, Inc. (OTCBB:IAGI) announced the signing of a letter of intent to acquire 100% of JSK Fund Co Ltd, a company which owns 100% of Car Planner Co Ltd., Japanese companies, from JSK Partners Inc.
Car Planner, founded in 2006, records service and commission revenue by selling automotive parts over the internet to more than 700 car dealers, gas stations, and car maintenance shops in Japan.
In its fiscal year, which ended in March, Car Planner recorded sales of $1.5 million U.S. and net income of $120,000 U.S. The purchase price for IAGI is about $325,000 U.S. at current exchange rates.
IA Global is a global services and outsourcing company focused on growing existing businesses and expansion through mergers and acquisitions in the Pacific Rim region, now using its network of business partnerships to acquire growth businesses in its target sectors and markets at a discount.
This company has certainly been busy in the last few months. Just before Christmas, for example, IAGI took in an investment of about $2.2 million U.S. from a Japanese mutual fund. The firm has allocated about $2 million U.S. of those funds to establish a venture capital fund in South Korea, the remainder of the proceeds for working capital purposes.
In the spring of 2008, IAGI acquired 100% of the Filipino firm Shift Resources Inc. and Asia Premier Executive Suites Inc, multi-service call center operations that have now been merged into a single company operating as Global Hotline Philippines. The Philippines operations provide a low-cost, highly skilled work force that is well positioned to address IA Global's target markets.
Best news of all, IAGI is in the bargain basement for investors hoping to add some aggressiveness to their portfolios. The stock traded at just over a penny the day after the acquisition of Car Planner, after languishing in a 52-week gulch around 0.0093 cents U.S. since early April.
Its 52-week peak was a mere 10.86 cents in mid-May of last year. This is a firm that is taking on more partners, acquisition targets -- and, if it plays its cards right, investors.
Related Stories
