When it comes to the perception of public companies, image is extremely important. Specifically, stocks that are considered "penny stocks" usually show characteristics of being startups with stories. Their chances of success and bringing in lasting returns for their investors are minimal at best. It is never good to generalize but there is a reason China Vesting tracks over 500 companies and of those we follow less than a dozen are considered "penny stocks". Of the companies that China Vesting does monitor most are listed on the Nasdaq or NYSE AMEX. This is exactly why when we first started researching China America Holdings (CAAH) it felt like a complete waste of time. Based on the April 20th closing price of $0.04 per share the expectation levels for the company were kept very low. China America Holdings is in the business of selling and distributing assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, refrigerators, fire extinguishing agents and assorted aerosol sprays. The liquid coolant business may not seem like a very attractive industry. However, according to the State Information Center of China, the Chinese air-conditioning market is predicted to reach a sales volume of 25 million with a 10% rise year on year for the 2010 air-conditioning year. China also became the world's largest auto market last year, when total vehicle sales jumped 45 percent over 2008 to 13.6 million units.

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