Also problematic is that Denise Chai who was named top stock picker for China/Hong Kong was the analyst at Merril Lynch that downgraded ATV from a Buy to a Sell (or was it strong buy to strong sell). Quite a jump!
However, I cannot find any statement by her as to the reasons for the downgrade. Nor have I seen any price target linked to her downgrade. Or is it just get the hell out of this stock!
There is really a lack of graspable info on ATV.
As for the $5M, don't most companies put their cash to work into such things as STIFs and the like, to generate additional income? I did read somewhere tht one of the directors or the ceo invested a considerable sum in some Chinese Co. causing a rumor of a merger or buyout of said Co. and then he later sold the shares for a tidy profit? Could that be the source of the $5M "other" income?
Also, where do you get that two insiders own 40% of shares outstanding? I can find no info at all regarding insider holdings. Link?
This is definitely a risky stock because of lack of info and coverage. In the light of that I guess it boils down to Q4 results. The have declared this
2007 Revenues will come out at between 240 - 265M 2007 and a net income of 24-26M
If we assume 250M and 25M that gives a revenue increase of 25% over 2006, and net income that is 21M over the 4M of 2006 and best ever. So it all depends on year-end figures.
ATV needs to broaden it's product offerings and build alliances with other companys, including QVC.