I've had a good look at the SORL earnings report and conf call. Great results and very impressive how the company performed in a challenging market. This illustraties extremely solid management. If the market improves SORL is lined up to explode.
In the first quarter of fiscal 2015, SORL expecting revenues increased year over year , driven by higher average selling prices.
Oh I see, shaw2, your math and reading skills are so bad you are simply resorting to making things up.
It was a reverse merger in the time when it was difficult for small Chinese companies to gain access to financial markets home or abroad. Unlike many reverse mergers, this one has endured the test of time and as evidenced by this timely correction news release, deserves the benefit of the doubt with regard to credibility of their numbers. If the company takes it public now in China it'd instantly trade at least triple the valuation of what the US market is giving it now, imho. The buzz words AIIB and high speed rails alone would guarantee that, not to mention the blow-out numbers it has just reported. The US market will wake up to this soon enough and that's why its highly possible you'll wake up one fine morning soon to a double or triple.
"For the fiscal year 2015, management expects net sales to be approximately $256.0 million and net income attributable to common stockholders to be approximately $15.0 million."
Fourth Quarter 2014 Financial Highlights
Net sales for the fourth quarter increased by 14.4% to a fourth quarter record high of $63.2 million;
Gross profit increased 23.5% with a gross margin of 27.7% compared with 25.6% in the fourth quarter of 2013;
Net Income attributable to stockholders was $4.3 million, or $0.20 per diluted share from $0.8 million, or $0.05 per diluted share in the fourth quarter of 2013;
Cash, cash equivalents and short-term investments were $48.8 million with a current ratio of 3.4 to 1 at December 31, 2014.
Sentiment: Strong Buy
2014 Full Year Highlights
Net sales increased 13.9% to an annual record high of $237.7 million;
Gross margin was stable at 28.1%;
Net income attributable to stockholders for fiscal 2014 was $13.8 million, or $0.71 per diluted
Sentiment: Strong Buy
This is a Reverse Merger with deeply questionable Accounting/Auditing, and 'internal controls'. Mr. Market has been fooled far too many times with exactly these kind of shenanigans; at some point it wises up, and thus the stock is actually down on the this 'wonderful' earning news to which you allude.
The fact they cared enough to correct their guidance number right away lends credibility to the management. I doubt a schemester company would bother with such triviality. This company has just reported 20 cents per share earnings vs 12 cents expectation. The implicit message of the correction press release is that the management is comfortable with standing behind these reported blow-out numbers.
Apparently, they can't even deliver an accurate press release of earnings/sales estimate. Talking about incompetence. Than again, may be they had second thought about this allegedly misleading incident; who knows.
The bad holder in this case may very well be the short sellers. A company in a red hot market, delivering blow-out earnings, a pure play on the next big thing. Looks like a great scenario for any growth investor. You could wake up one day and be looking at a stock that has just doubled in price, imho.
With the growth of its high speed rail business, SORL is a rare NASDAQ stock that is a pure play on the new AIIB. Shorting this stock is akin to walking on thin ice, it may be thrilling to but the risk is massive, imho.