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FAB Universal AO Common Stoc Message Board

  • gmtmaster2lv gmtmaster2lv Jan 30, 2014 3:27 AM Flag

    Hey icbc

    Why would you make such a silly statement....Since this acquisition was first announced (years ago at this point), I've been skeptical of WHY a (supposedly) cash-rich, profit generating company would want the headaches associated with being a public company trading on a major US exchange.

    I honestly thought you were sincere about your analysis until now.

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    • =Why would you make such a silly statement

      Huh? I didn't make that statement. guru did. I don't get the logic of it, either, but I think I understand the point he was trying to make. Usually companies go public to either raise cash or allow founders to cash in a portion of their ownership. Many of these Chinese companies appear to have joined our markets merely to funnel money to the PRC while thumbing their noses at our regulations.

      =I honestly thought you were sincere about your analysis until now.

      I DIDN'T make the comment you allege, but it speaks volumes about you if you would change your opinion on somebody over one comment instead of taking their entire posting history into consideration.

      • 2 Replies to lbcb321
      • You're correct Ibcb321... and I should have expanded and explained exactly what I meant by my comments (for the naive "pumping community"

        When this reverse merger was first announced, I was skeptical (and remain skeptical) as to Fab's (China only at this point) agenda as to wanting to go public given what they were stating to be their revenues, profit margins, and growth... Going/Being a public company on a US exchange brings with it greater scrutiny, expense (accounting/filings/legal), and accountability to shareholders which often can limit the business "perks" the execs might otherwise enjoy.... As Ibcb321 alluded to, Smaller companies (such as Fab) will generally only go public as a way to RAISE NEEDED REVENUE and/or for their "leadership" to CASH IN.... NEITHER of which appeared to necessary for Fab's (China) leadership at the time... According to THEIR STATEMENTS, they were growing fast, had money in the bank, and a rather large profit margin... They didn't state any reasons which made sense for needing cash, and if they wanted to "enrich" themselves along the way, they could have easily salaried and/or bonused themselves out of the CLAIMED cashflow/profits......

        INSTEAD, they decided to reverse merge into a US stock (WZE) with virtually no meaningful synergies... and while WZE's would only be generating ONLY roughly 5% of the combined total revenue (and losing money on their operations), they (FAB) voluntarily would be giving them 22% of the WHOLE when combined?? Hmmmmm .... It didn't make much sense then, and it doesn't make much sense now... UNLESS... their was a need for cash (if, dare I say, things weren't exactly as portrayed).... ADD TO THIS the recent discovery of a bond felt the need to issue and pay 11% on (??) ... and a building they wanted to purchase, put a down payment on, which they're now WORKING ON getting their deposit back on?? RED FLAGS all over this stock....

      • Just for the record, I've taken you 're entire posting history into consideration here before calling you an idiot.

        Just saying....

        Sentiment: Hold