Sat, Aug 23, 2014, 6:58 AM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Lotus Pharmaceuticals, Inc. Message Board

  • mmmparsley mmmparsley Mar 28, 2008 10:01 AM Flag

    Customers not paying up?

    The only thing that makes me think the company may be fairly valued is because of faulty accounting.

    One thing that raises concern for me is the sharp rise in Accounts Receivable? Can anybody explain why they are selling product, but not getting timely payments?

    Dave

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The below is from Message Board December 10, 2007, by Northenlightsk (Thanks Northern for an excellent post and work).

      I HAVE CONVERTED TO ALL CAPS ON THE PORTION THAT PARTIALLY ANSWERS THE QUESTION. (I also corrected some typpos.)

      Of course, the A/R is a concern, but this is the management line and it's good to know they are concerned.


      Now the post by NorthenLightSk:

      Visited Beijing Liang Fang Pharmaceutical Co., Ltd. yesterday, which is where LTUS's sale department is located at. LTUS rents a three storage building with about 5 offices each floor. LTUS also has a retail pharmacy shop on the ground floor. CEO's office is on the 2nd floor. LTUS's production facility is located at Beijing En Ze Jia Shi Pharmaveutical Co., Ltd., which is about 45 minutes drive from the building of sale department.

      . . . .

      I met CEO, Mr. Liu, on the 2nd floor of the sale department building at Liang Fang. He happened to have a telephone conference with US in regard to move LTUS from OTC to Nasdaq. I had a good chat with his assistance before he welcomed me to his office.

      . . . .

      (1) CEO said that they planned to move LTUS from OTC to Nasdaq. He expected to acheive that in 6 months. They had qualified except for the share price, in which he planned to do a reverse split.

      (2) He expected to achieve 30% organic revenue (top line) growth in the next few years. Whole sale and expansion of retail pharmacies are expected to drive the top line growth.

      (3) He expected 15% net margin long term from their business.

      . . . .

      (5) They currently have 10 retail pharmacy stores and are now considering to add 5 more. They plan to have in total 30 retail pharmacy stores in the future.

      (6) THEIR A/R INCREASED SIGNIFICANTLY FROM Q2 TO Q3 BECAUSE OF THE INCREASE IN REVENUE. THEY HAD CONTRACTS WITH THEIR CUSTOMERS, IN WHICH ALL THE A/R WILL BE COLLECTED IN 5 MONTHS. A/R IS NOT A CONCERN IN HIS VIEW.

      (7) The M & A landscape is competitive in China . . . LTUS does not have any plan to acquire a company. . . .

      (8) LTUS will not need to pay corporate tax (?) until the beginning of 2010 due to its high tech. status.

      (9) They currently have $12 million annual sale for Valsartan (Miaxin), with the newly addition of Valsartan dropping pills, they may achieve $20 million sale for Valsartan only.

      . . . .

      (11) They are currently in discussion with IR firm to boost the investors' relationship, including presentations and investors' conference calls.

    • Good point. They had about 90 days sales in AR as of Sept 30, 2007. That's a lot!!. I wonder if it is collectible.

 
LTUS
0.012-0.004(-25.00%)Aug 22 2:22 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.