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Chindex International, AŞ Message Board

  • thenasdaqman thenasdaqman Nov 3, 2003 3:40 PM Flag


    There are several crappy reverse mergers poping up on nasdaq bulletin board everyday in the chinese medical biotech and hospital fields with market caps in the 100 to 300 million market caps.These have 100 million shares fully out.Shorting those is more pracytical besides chdx is absolutely areal compamnywi with 1.7 million shares outstanding bloomberg is wrong info out there.There are only 1.7 million shares out.I like their pharmacy disrtibution model doing 50 million in revenue and should have increasing gross marins in the 3rd 4th qtr.That is the qtr ending dec 30 and mach of 04.

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    • Using CHDX accounting, if I buy a car for 25,000, and turn around and sell it to you for 20,000; I have generated 20,000 in revenue.

      Their revenue figures don't zero out the cost basis of the supplies.

      • 1 Reply to AikenLaw
      • That is not a true statement.Call the company.They have lost money because they have spend tons of money to get shelve space in the pharmacies.They have gross margins there of 13 percent.A distributor in the usa has typical gross margins 0f 2 to 3 percent.They have also lost money by building the Shanghai clinic and expensing the bulk of development a very conservative approach.They have in the past been so dependant on equipment leasing deals that they have lost focus on building out the new parts of their business.Equipment leasing is now only 35 percent of their business and thus determines their earnings more in the past that it will, in the future.Again this thing depends on the mgmt execution.If they execute next year this market cap could be considered way low.Definitely not worth the short risk.