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China XD Plastics Company Ltd. Message Board

  • iq180plus iq180plus Dec 2, 2013 12:33 PM Flag

    A long slow slog to $20 in two to three years hence, unless they go private

    for 6.5 to 8 bucks, which as obscene as that is, is a likely possibility. given the ignorance of the US investor community, not to mention the H-town maggot factor.

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    • elpasojet Dec 2, 2013 2:04 PM Flag

      I am aware that their receivable per conference call is within industrial means, but further expansion might impede growth due to the shrinking of their cash flow, would it?

      • 1 Reply to elpasojet
      • I would be aware of the growing receivable number and watch it closely over the next few quarterly reports. The question really is not of the growing number, but why it is growing. Is the number growing because old receivables are not being received AND additional ones are being added, or if the customers are actually making good on the older ones, and the company just has increasing current sales that are still in receivables, as it is an equal portion of sales.

        If it is old ones are not being made good, that's very concerning regarding their likelihood they will be received, and also very concerning as that will indicate a poor credit policy for customers that may need to be tightened up. This would also most likely require write offs of receivables at a later date, which is a negative.

        Would be nice to research into this and find out. I'm also fairly new to the company and haven't been able to do this research yet.

    • elpasojet Dec 2, 2013 1:56 PM Flag

      How do you view on their substantial increase in account receivable in the past 12 months? There is a jump of $110MM for past 12 months and $210MM increase in past 24 months , is that the reason why the stock price is so stagnant?

      Disclosure: I have just started a position on CXDC.

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