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eFuture Holding Inc. Message Board

  • jtechkid1969 jtechkid1969 Jul 12, 2012 10:51 AM Flag

    Lot more deals could be coming

    As Chinese big Banks provide liquidity or loans to come home- Remember, Efut head of audit committee Brian Lin took his company private -China fire and Safety(cfsg)with bain Capital at 9$ or 2x sales or about 250mill deal- I expect to see a ton more deals in the next 6 months. I dont think Efut will do this because they are too small but with the stock prices doing nothing its has to be out there.

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    • Jtechkid1969, Interesting article in Forbes today regarding your topic. It could have a very positive effect for Chinese companies wanting to delist or sell. Mentions much higher multiples if listed in Hong Kong or even mainland China. Not saying eFuture is in that category but if you read the article I wouldn't rule it out.

      • 1 Reply to ozzie232
      • Ozzie,

        Of course E-Future would get a higher multiple in Hong Kong. I think the ownership likes the prestige of being listed in the US markets, as they use that as a selling point in their business relationships and in hiring new employees. They love to point out they were the first Chinese software company to list in the US.

        A company growing at 15-25% (averaged out over 5 years) annually, with no end in sight for that kind of growth, should be valued at the very least at 2x sales - or $14.00 per share.

        If E-Future is a legitimate company, which it is, it is worth $14.00 today at a minimum. If it isn't. It's worth nothing. WDAY, another SaaS software company just IPO'd today with a 31x P/S ratio. Compare that to E-Futures .5 P/S ratio. It's totally ludicrous.

        I'm not sure if I'd be happy with a $6-$7 buyout. If that were to happen, it would seem that the company went public only to take investor capital when it needed it without any concern at all for those that allowed the company to continue their expansion debt-free by risking their own capital at great risk.


    • NIne goes private today-up 80% but way under fair value-However, the trend to go private will reduce supply dramatically in the sector-Companies left standing in China small cap when this turns should go up dramatically-To much money chasing not enough supply is how bubbles start. The worst thing would be to efut to go private at 5-6$

    • KH bought last week by USA company-paid huge premium. Today, ADY going private with Morgan Stanley-I expect deal flow to keep up the pace as Investment Banks try to close dealsd by year end -All very healthy for putting a bottom in the sector

    • fair buyout is about $25 bucks at this point

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