Seeking Alpha author about CHGI has impressive résumé
There are two recent Seeking Alpha articles--they can be found on CHGI's summary page of Yahoo--that make positive comments about CHGI.
I took the opportunity to check the author's resume that accompanies the articles. It is very impressive. Mr. Friedlander specializes in foreign, notably Chinese, companies, writes and gives talks for such as Wall Street Journal, Forbes, and Bloomberg. He also has his own consulting firm.
ANYBODY drinking the Kool Aid from any Reeking Alpha preposturous PUMP job deserves to be wiped out. Notice this clown has but O N E "follower" (that being none other than Jak Lifton!!! WOW). Of course he fails to mention DECREASING y/y revenues, Ginourmous DEBT load vis a vis the weak revenues, so called China stimulus actually being the SMALLEST one yet (hows that supposed to trickle down to everybody??), China's LARGEST STEEL co just announced they're cutting production, and on and on. By all means, follow this kook, oops imeant GURU! Drinketh the Kool Aid my bretheren. Impressive RESUME hahahahahahahahahahahahaaaaaa too much.
Nice exposure for CHG; however, I do not believe Mr. Friedlander addressed the $49 million of debt that CHGI carries, and how long it will take to service that debt. The article seems somewhat misleading without mentioning that!
The debt is, admittedly, high but needs to be understood:
Much, in fact most, of the debt was taken on to buy raw materials in anticipation of large orders and rising costs of the finished product. In other words, the company decided to stock up with raw materials and borrowed for it. Suppliers have been paid. As revenues come into CHGI, it is mostly free cash flow now. The cash flow can be used and is being used to pay down the loans.