The Maxim Group estimates were for $56.4m in revenues and $7.9 Million in net income.  CHOP beat estimates producing $57.2 million in revenues and $11.4 million in net income.

    Fourth Quarter 2009 Highlights
    -- Revenue increased 45.3% to $57.2 million from $39.4 million in the
       fourth quarter of 2008
    -- Gross profit increased 70.3% to $17.0 million from $10.0 million
    -- Gross margin increased 430 basis points to 29.7% from 25.4%
    -- Operating income increased 80.9% to $15.7 million from $8.7 million
    -- Operating margin increased 550 basis points to 27.5% from 22.0%
    -- Net income attributable to common stockholders increased 111.5% to
       $11.4 million, or $0.27 per diluted share, from $5.4 million, or $0.18
       per diluted share
    -- Cash and restricted cash of $79.6 million and $37.5 million,
       respectively, as of year-end 2009, compared to $42.6 million and $24.7
       million, respectively, as of year-end 2008
    -- Accounts receivable of $4.8 million as of year-end 2009, compared to
       $10.3 million at year-end 2008
    -- Working capital of $49.3 million as of year-end 2009 versus a working
       capital deficit of $9.4 million at the end of 2008
    -- Shareholders' equity of $87.0 million as of year-end 2009, compared to
       $12.5 million at the end of 2008

Business Outlook

China Gerui’s existing production facility is running at very close to full capacity and for fiscal year 2010 the Company expects to focus on expanding its production lines in order to meet the demand for its products in the Chinese domestic market. In addition to the high-precision cold-rolled steel strip products, the Company will focus on developing other high-margin steel products in the cold-rolled steel category, such as wide strips and sheets.

The Company is on schedule with its plan to construct a new production facility, including two 75,000 ton chromium-coated production lines to be completed by the second half of 2010 and one 100,000 ton zinc-coated production line to be completed by the end of 2011. This expansion is expected to increase the Company’s annual production capacity to 500,000 tons by 2011.

Disclosure:  LONG CHOP

Bullion Monarch (BULM) is a natural resource development and royalty company with interests in gold, silver and oil shale.  Gold royalty companies have been making a buzz lately as they are a very low risk high reward way to play the resource bull market.  Royalty companies are considered low risk/high reward because they don’t have the capital cost risk associated production but offer full exposure to the upside of rising gold or other resource prices. Royal Gold (RGLD) and Franco Nevada (FNNVF.PK) are the most widely held gold royalty companies.  Bullion Monarch (BULM) is positioning itself as a resource royalty company, not only encompassing mining royalties but also other resource royalties (ie energy).  BULM is profitable, has no debt, low management salaries, and buying back stock.  BULM bought back ~4% of their outstanding shares in 2009.

Unlike what I normally do, I will start with the blue sky potential in BULM:

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Mark Zuckerberg bought a gong for the Facebook office, and employees bang it when they launch new products.

For years, it has been Waiting for Godot for investors who want to know when they can get a piece of hot tech company Facebook.

Facebook CEO and founder Mark Zuckerberg speaks to press and advertising partners at an event in New York.

In a Page One story in Thursday’s Wall Street Journal, Facebook chief executive Mark Zuckerberg suggests they are going to have to continue to wait.

“We’re going to go public eventually, because that’s the contract that we have with our investors and our employees,” Mr. Zuckerberg said in the profile of the young chief. But, he added, “We are definitely in no rush.” (You can read the rest of the story here.)

What investors really want to know, however, is how much a slice of the social phenomenon is going to cost them. And they are starting to come up with some bets.

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Comment: Here is a great article that was just in the Wall Street Journal.  And its exactly why I’ve been bullish on GORO, TLR, and soon BULM.

Main Street investors always want in on the ground floor of the next Microsoft or Google, or, in the commodity world, the next gusher or mother lode.

At a time when gold is above $1,100 an ounce and some expect it to go far higher, a lot of investor energy is focused on the so-called junior miners. These are the tiny mining firms that often own little more than a piece of land, some geology studies and dreams of El Dorado. So much cash has flowed into the Toronto Stock Exchange’s small-company Venture Exchange—where mining firms in 2009 raised nearly Canadian $3 billion—that its total market capitalization surged by 112% last year.

For too many investors, though, this pursuit of El Dorado ends up as a financial nightmare. Even if you’re lucky enough to pick a miner that finds a rich vein of gold, you can arrive so early that your stake crumbles while the miner navigates the hurdles between locating a gold deposit and actually producing it.

Despite the “great sex appeal” of early-stage mining companies, “most just wash out,” says Frank Holmes, chief executive of U.S. Global Investors, which runs a gold and natural-resources fund. Those that do find a viable lode often end up hamstrung for years by environmental or governmental delays that erode share prices.

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Membership Base

Quepasa.com has experienced rapid growth as reflected in the following table:

My Initial Report. QPSA hit a new 52 week high this week ($4.20).  I bought an initial position at 2.90 a share a few weeks ago.  QPSA is the only publicly traded social networking company and its gaining members quickly as you can see above.  Quepasa.com is currently adding 40-45k members a day.  Their current burn rate is $350,000 month and the company feels their DSM (Distributed Social Media) campaigns will cover their burn in 2010.  With private transactions valuing other social networking sites at $20 – 60 per member, and with Quepasa.com targeting 20-25 million members by year end 2010, QPSA remains a very unique stock to own in 2010.  As long as the story doesn’t change I will add to my position on a pull back to 3.25-3.50.

Disclosure: LONG QPSA

CHOP will announce their Full Year 2009 earnings next week.  The company’s product demand is a direct result of the increasing consumer demand (buying habits) in China.  Chinese premier Wen Jiabao mapped out the country’s growth plan for the next five years at the annual National People’s Congress. Ian McGuinn, head of operations & research at JLM Pacific Epoch, analyzes the plan, with CNBC’s Maura Fogarty.

Disclosure:  LONG CHOP

GAXC reported their Q4/ Year End 2009 results yesterday after the close and also had their conference call this morning.  I’m not going to get into Q4 results that much because you can read it for yourself.  I was paying more attention to guidance, RP (request for proposal count) for ATM and DVD, and any potential guidance going forward.

The company surprisingly did give guidance.  GAXC management team is ultra conservative, but since their public peers provide guidance they likely felt compelled to provide some base line case for the 2010.

“Assuming similar transaction levels in 2010 compared to 2009, and based on what we believe to be is a stable base of predictable revenue, we are targeting 5% to 10% organic growth from our ATM business,” Mr. McQuain concluded. “Our DVD kiosk business will provide upside to this guidance, and we expect this new and emerging segment to add 5% to 10% in incremental revenue for calendar 2010. As we continue to carefully manage our expenses and focus on higher volume locations and higher margin opportunities, we anticipate accelerating our profitability in 2010 compared to 2009.”

10-20% growth in itself would be quite an achievement given their relatively flat performance the last four years.  That said I believe the company has a good chance of hitting the top end or beating this guidance.

One of the most interesting tidbits of the call was the RP (Request for Proposal) tally for both ATM and DVD divisions.  RP’s are the number of ATM’s we are currently bidding on and same for DVD’s.   The current ATM RP’s stood at 5,000 at year end.  To monetize this further, GAXC is currently bidding on $25 – 45 million in annual ATM business.  This gives investors the growth potential for the ATM side moving forward.  A major win is a big deal.

GAXC also stated that their current DVD kiosk RP’s stood at 550.  They said that most of these RP’s are on accounts that are currently using Redbox, NCR, or another incumbent.  To monetize this further, GAXC is currently bidding on $13 – 16 million in annual DVD kiosk business.  Management stated that demand is so high that they are being very cautious in cherry picking the most profitable locations/accounts.

So in totality, GAXC is currently bidding on new business that represents $40 – 60 million in ANNUALIZED revenues ATM/DVD combined. This is why I’ve been saying since November that GAXC can wake up and wake up quickly on any significant ATM or DVD win.  The company has squeezed as much blood from the rock as they can with internal efficiencies and any new win would have a direct and meaningful effect on both top and bottom lines.

The company also said they expect to have their third kiosk initiative narrowed down by the Q2 2010 conference call.  The company has a vast client base in which to sell further kiosk offerings, so I look forward to hearing what the new initiative will be.

I’m one of the largest individual (non institutional) investors in Global Axcess and will be a buyer of more shares on pullbacks.

Disclosure:  LONG GAXC

-Quarterly Revenue, Gross Profit, Gross Margin and Net Income Increase -
-Record Net Income for the Year of $2.8 Million Included Recognition of Deferred Tax Assets of $1.3 Million; Net Income Excluding Tax Benefit is a Record $1.5 Million -

Global Axcess Corp (OTC Bulletin Board: GAXC; the “Company”), an independent provider of self-service kiosk solutions, today announced the financial results for the fourth quarter and fiscal year ended December 31, 2009.

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Disclosure:  LONG TLR