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China Education Alliance, Inc. Message Board

  • jdt115 jdt115 Apr 1, 2013 7:38 PM Flag

    NIT termination and $7.9 million note

    Dealer and Harry, Because this was terminated in March does this mean that they will show another 7.9 million in cash on their next quarterly earnings statement. Assuming the don't lose any money in the second quarter they would then have aound $74 million in cash again and no debt. I don't know if this translates to a higher stock price but it does represent another $10 million in cash that will not be tied up anymore. Really bad sales numbers in the first quarter though which is useally the case in the first quarter. What are your thoughts on this quarter and the termination of the NIT agreement? JDT

    Sentiment: Hold

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    • Ok guys first this is the 4th quarter we are talking about not the first quarter of 2013 ,second can anybody explain this statement :
      Our subsidiaries ZHTC, Changchun Nuoya and Harbin Nuoya are private schools not operated for reasonable returns; therefore, are not
      allowed to distribute dividends. As of December 31, 2012 and 2011, the total un-distributable net assets of ZHTC, Changchun Nuoya and
      Harbin Nuoya amounted to $33,169,873, and $31,225,001, respectively.

      Sentiment: Hold

      • 1 Reply to dealer235
      • Dealer, That is incorrect. The termination has taken place in the first quarter (March) as the 4th quarter ended on December 31st. Therefore the 1st quarter of 2013 report will reflect this $7.9 million. They did report 4th quarter earnings and that is correct but my posting above is 100% accurate. JDT

        Sentiment: Hold

    • jdt115,

      I think the company is in trouble for the near future because of sales/revenue is down to nothing. Also, the auditing/accounting has to be addressed. One bright spot is the settlement of the lawsuit. But given the new online website has not had an official launch date; I give it an additional 6 months before it will be helping out. I think CEAI will continue to loose money until then. Does not seem that their brick and mortar schools/locations are generating increase sales either like Mr. Yu has forecast in 3 Qtr. C.C. Yes, they do get the $7 million in cash but with the looses going forward; it just will cover it(the losts); and CEAI will have the same cash position as the end of 2012! The auditing/accounting may need to be redone for 2010 on!

      Sentiment: Hold

      • 1 Reply to harry_wild
      • Good input Harry. I appreciate it. You would still think that having $70 million plus in cash and no debt would give them at lease a $35 million market cap. Yet here we sit at 60 cents and just under a $7 million market cap. Chinese stocks are so out of favor now that this is what we get. JDT

        Sentiment: Hold

 
CEAI
0.0750.000(0.00%)Jan 26 3:26 PMEST

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