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China Power Equipment, Inc. Message Board

  • hedgefund_king hedgefund_king Apr 1, 2011 9:13 AM Flag

    The 2010 Report is Fine

    Having the cash to fund your operations and expansion plans is a good thing in my book. If they didn't have the cash they would have to go to the market again to expand. The way they talk about the future growth they will need this cash. The Company has funded its operations and capital expenditures using cash generated from operations and funds raised from issuing convertible preferred stock. It will continue its investment in the development and enhancement of the production facilities for amorphous alloy cores and transformers. Cash generated from operations and funds raised from issuing convertible preferred stock will be used to fulfill such commitments. China Power Equipment believes its existing cash will be sufficient to maintain its operations at the present level for at least the next 12 months.

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    • Sorry Ben.

      Considering you have been here since the 4's I would imagine you are much worse off then me. Must be annoying to hear me complain about loosing 10-20% when you are down likely 60+%.

      I will try to be more considerate. Hopefully the 5 dollars you were saying the stock is heading a few months ago comes true. Nobody deserves to loose money do poor corporate structures.

      Hopefully I will be gone soon. I will be the one creating a short lived wall at the 1.2-1.25 range once we get there. Or I will be one the buying in the low .90's once we get there. Which ever hits first. Lower cost average may be the only way out without a loss.

    • Mikey your post should be translated by all to mean,"Shouldn't the company do something with all that cash to help me get out of the underwater position I am in". Correct? Take your loss like a man and move on. Here is the deal with most here, Traders like you make pennies, while Investors make Dollars. We all can wait for the company's plan to kick it. For gosh sakes if you could actually read you would know that the new line does not get certified until this summer. How much longer do we have to see your whinning on here because you lost on a TRADE?

    • thanks this is bad in addition to the sales growth but not unrealistic for a small company trying to build capability. I agree that revenues are the most important thing here at this point, why hasn't it taken off, poor mgmt as you claim, not green enough to attract interest, too expensive, not enough sales expertise and visibility,china govt not interested, what

    • She is VP Finance not with the IR firm.

      Thank you for your emails to let us know what you think of our company. We really appreciate your support in these challenging times.

      We are obviously not satisfied with the current level of our stock price and hope that the markets will increasingly recognize the fundamental value that we see in our business.

      As you may aware, we will be increasing our investor relations activities, started with our presentation at the Rodman & Renshaw conference in Shanghai this March to raise our visibility with the financial community. At the same time, we upgraded auditors this Jan. and launched new webstie recently. We are also planning to have conference calls with investors.

      Again, thank you very much for your emails. Please feel free to contact me if any questions.

      Best regards,

      Nicole Chen

      VP Finance

      China Power Equipment Inc.

      Cell (86) 186-1633-1170


    • So you think 5% revenue growth for Q4 and -10% income growth for Q4 is good. Q1 of 2010 saved the year but since the first quarter the company has been reducing its growth very heavily. Q4 of 2009 had income of 1.11m and Q4 of 2010 had income of 957k. That means Q4 sales increased 5% and income dropped by 18%.

      I fail to understand why people are so happy with this company. Simply having cash in the bank and cash flow positive is not enough. I would prefer a company that is in the red but growing rapidly then one that isn't growing, has positive income but gives the shareholders nothing. This company would get a better return if they shutdown operations and simply put cash in a CD.

      I am just curious if someone can explain what is so good. Now keep in mind using just data that is simple a picture of 12 months is not smart investing. Breaking down the year and looking at how they did is smart DD. Q1 was really good but after that the company has systematically fallen apart as the year progressed. At the current rate Revenue should be nearly flat next quarter and income should be down 20+%.

      There is nothing fine about their filings. I am hoping someone will buy the company at 10% below book. That can give us 1.2/share buyout and outside of that hope I cannot see why anyone would buy this stock. Of course there is always the hope that at the end of the year they can turn it around with the new transformer but who knows. I have my fingers crossed that I can get one more opportunity in the 1.20's but I am starting to think that the stock might not see that high again for a very long time.

      • 3 Replies to mikeymgd
      • Remember this is a $1.00 stock. They dont have to execute perfectly to get the share price up. How many stocks at this price have you seen that are cash flow positive.The problem is the sector. That is dragging all of these stocks down.

      • Mikey, you seem to be very unfamiliar with growth and development of companies. you seem to focus on one thing and ignore all the other positive accomplishments of the Company. CPQQ had a 24.3% increase in revenes not 5 %, and a 30.2% increase in net income not 5%. Please stop misleading people, these are the facts. CPQQ moved their whole company last year and set up new and expanded production facilities to handle the expected demand over the next couple of years. That takes time, resources and money. Of course revenues and earnings will vary from quarter to quarter. You are missing the big picture. Calm down and relax the Company is doing great and the stock price should do much better in 2011. Pretty soon you may be concentrating on growth rates week to week. The Company is very well positioned now to handle large increases in new business and can fund their growth out of cash flow.

      • I kind of get you....but you sure seem to focus on the one quarter alone.

        1.2 ? I am simplistic, but I think you will get your chance.

    • Good post. The Company is rock solid and I love their expansion into solar energy.Great cash flow and the Company took a $1 M charge for bad debt that they really didn't have to take or the earnings would have been even higher. This Company is really well positioned for explosive growth. I like their conservative approach.

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