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ChinaCast Education Corporation (CAST) Message Board

  • investor4444 investor4444 Aug 28, 2012 12:37 PM Flag

    Financing

    Surprised by the muted reaction to the announcement of over $2million dollars raised ..

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    • I agree incog that it is a slow process but it is proceeding in the right direction with results, albeit slow but none the less more control is being returned to the board who has every intention of bringing this company to the standards of operation and managerial excellence that attracted our dd in the first place.

      I believe that in the next few weeks or next month we will learn about the enrollment and the tuition fees deposited as a result of the management entity formed in Shanghai. The announcement of Aug 24 states what is truly a great achievement by the board and Derek Feng.

      "BEIJING, Aug. 24, 2012 /PRNewswire-Asia-FirstCall/ -- ChinaCast Education ("ChinaCast" or the "Company", OTC: CAST), a post-secondary education services provider in China, today announced it has secured the Business License and Chops of ChinaCast (Beijing) Education Technology ("CBET"). CBET held the stock of Wuhan Jiyang Education ("Jiyang"), holding company of Hubei Industrial University ("HIUBC"), and China Lianhe ("Lianhe"), holding company of Li Jiang College, before the shares of Jiyang and Lianhe were illegally transferred by prior management in March 2012 prior to such management's removal from their positions with the Company. Securing the Business License and Chops of CBET will assist the Company's efforts to regain legal ownership of Jiyang and Lianhe.

      This development follows the Company's earlier recapture of the Business License and Chops of its Shanghai based Yupei Training and ChinaCast Technology (Shanghai) wholly owned subsidiaries in May 2012.

      In addition, the Company recently completed the formation of a new Shanghai wholly owned entity that will serve as the new operating base for the Company controlled by new management.

      The Company's initial lawsuit against the illegal share transfers of the entities operating the schools has been focused on Jiyang, the entity which owns and operates HIUBC in Wuhan. As previously announced, ChinaCast commenced this suit in July of 2012 and is vigorously pursuing this lawsuit.

      Derek Feng, CEO, stated, "Securing the Beijing and Shanghai Chops is an important achievement for the Company. With these Chops, we are now in a position to move forward in our efforts to unwind all illegal contracts and asset transfers that have occurred. We thank the local Chinese authorities for their support in our mission, and also thank all of our loyal employees and partners for their tireless and valuable service."

      Sentiment: Hold

    • I agree incog that it is a slow process but it is proceeding in the right direction with results, albeit slow but none the less more control is being returned to the board who has every intention of bringing this company to the standards of operation and managerial excellence that attracted our dd in the first place.

      I believe that in the next few weeks or next month we will learn about the enrollment and the tuition fees deposited as a result of the management entity formed in Shanghai. The announcement of Aug 24 states what is truly a great achievement by the board and Derek Feng.

      "BEIJING, Aug. 24, 2012 /PRNewswire-Asia-FirstCall/ -- ChinaCast Education ("ChinaCast" or the "Company", OTC: CAST), a post-secondary education services provider in China, today announced it has secured the Business License and Chops of ChinaCast (Beijing) Education Technology ("CBET"). CBET held the stock of Wuhan Jiyang Education ("Jiyang"), holding company of Hubei Industrial University ("HIUBC"), and China Lianhe ("Lianhe"), holding company of Li Jiang College, before the shares of Jiyang and Lianhe were illegally transferred by prior management in March 2012 prior to such management's removal from their positions with the Company. Securing the Business License and Chops of CBET will assist the Company's efforts to regain legal ownership of Jiyang and Lianhe.

      This development follows the Company's earlier recapture of the Business License and Chops of its Shanghai based Yupei Training and ChinaCast Technology (Shanghai) wholly owned subsidiaries in May 2012.

      In addition, the Company recently completed the formation of a new Shanghai wholly owned entity that will serve as the new operating base for the Company controlled by new management.

      The Company's initial lawsuit against the illegal share transfers of the entities operating the schools has been focused on Jiyang, the entity which owns and operates HIUBC in Wuhan. As previously announced, ChinaCast commenced this suit in July of 2012 and is vigorously pursuing this lawsuit.

      Derek Feng, CEO, stated, "Securing the Beijing and Shanghai Chops is an important achievement for the Company. With these Chops, we are now in a position to move forward in our efforts to unwind all illegal contracts and asset transfers that have occurred. We thank the local Chinese authorities for their support in our mission, and also thank all of our loyal employees and partners for their tireless and valuable service."

      Sentiment: Hold

    • There is reason to be optimistic but at the same time the fact they need this money would seem to suggest they are unable to access any of the cash, even what has been coming in for the new school year. They have the chops and the business licenses now but have not resolved the fraudulent ownership transfer. They must feel they will be able to resolve this in their favor if they are putting in another $2.1M. It seems as if they are preparing a new legal structure in anticipation of this. If they do pull this off through either negotiation or through the courts it will be an interesting situation with trustworthy, western oriented management in charge of the business and the assets. Even if all or most of the cash is gone the businesses were generating huge cash flow, assuming those figures were not fake. Sherwood and Fir Tree have a huge incentive to gain control and find a way to salvage as much as possible from the investment.

      The best news is the prior revelation that the universities are doing well, have totally distanced themselves from Chan and his criminal gang and that enrollment is actually up for the new school year. That would suggest the value in the business remains intact. Retrieving the cash seems like a long process with low odds of a meaningful recovery. It does seem there is a reasonable chance of a decent outcome for the stock price within the next 12 to 18 months.

 
CAST
0.0211-0.0189(-47.25%)Apr 23 9:30 AMEDT

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