When managment mentioned they were in the process of arranging a credit facility
to take care of working capital needs I considered this extremely good news. And sure enough they came through, thus doing away with the threat of dillution. Time and time again over the last few years managmentment has had the balls to set high guidance and time and time again they have met their targets. Both top and bottom line growth have been shockingly good. And by know any astute investor is aware that the large AR balances are simpley the wel known payment lag time by chinese gov't and large chinese companies. I see the company making about $2.40 this year and god knows what next. That said the price action has been lousy, making me wonder if there's going to be some kind of sleezy short attack by the scummy turds out there. If that's the case, appart from harping on the AR, which is a non issue and accepted part of their business model, I don't know what the hell they are going to come up with. Sure wish they had optioins for TSTC.
Great to see the A/Rs growing. Too bad they don't have any money and until they get money out of those A/Rs you're not going to see any institutional interest. When you don't have any money to buy sugar, lemons and water you can't make lemonade. Retail investors like you and me won't make this company move; it takes "big money". You'll turnout either selling or like me turning a trade into a long term investment with hope as our strategy.
Couple of things please stop telling everyone your long it's a blatant lie. As far as A/R's I owmed TSTC in the $3's sold in the $5's WHY because the DSO's were so high and wreaked of scam to me.... After watching the next $20 up & TSTC finally communicating with investors via CC and hiring IR firms to get their story out I did a lot more research. Yes I think the deal they HAD to make with the big 3 stinks and yes I would love it if they could collect faster BUT lets keep in mind WHY TSTC made this deal. Last mile installers are many in China BUT not many can reproduce the terms TSTC has given hence the great growth also TSTC didn't have much leverage BUT now WFDS can be a game changer for them as their proprietary product gives them some advantages. TSTC has ALWAYS gotten paid unfortunately the cycle grows due to TSTC's growth so yes A/R's go up and wont go down unless their biz stops growing or goes down. Outside of China sales will be normalized but the lions share of sales will come from China for the next 2 years . I cant stress this enough TSTC hasn't gotten beat out of one single penny from the big 3 and NO reason to think they will going forward.... 3G & 4G has about 12% penetration rate in China so far 2011 & 2012 will be huge growth years for China telecoms.
The non-issue is the issue. Don't you see the arm of government control here? Your non-issue is what's killing this company and there's nothing they can do about it. Were it not for the LOC they'd collapse; the subsidized telecoms would fold or raise prices beyond the ordinary Chinese citizens reach and the pols would be out; or, there even might be a revolution. 1949 all over again and this time over cell phones.
the payments are being delayed for a year, but the money is coming in, and the risk of default is nonexisten as you're dealing with billion dollar companies. You act like they aren't getting paid. Might want to ponder this.