Lots of fear and paranoia being generated which appears to be wringing out all the newbies that thought the 1st quarter numbers were going to somehow propel the stock higher. 1st quarter numbers are predictably weak and many other these new investors have lost patience and appear to be selling. Market makers may be easing the severity by releasing larger orders of disaffected momentum investors in small intervals throughout the day as E-Future is about as liquid a rusting Chevy chassis and an immediate distribution of the stock would lead to wild price swings.
Tibet pharmaceuticals recent demise has been touted here by some posters as proof that all Chinese companies (and the books which they keep) brought to market by Anderson and Strudwick are tainted. Albeit, Anderson and Strudwick seemed to assist companies who would have had a hard time gaining access to US Markets through larger underwriters, yet it doesn't mean that all companies that IPO'd through A&S, now Sterne Agee, are all tainted.
Does anybody really think, like some posters suggest, that Anderson and Strudwick demanded that if they were to underwrite Chinese companies that the management must first prove to them that they had no interest in tapping the public markets for any other reason than thievery! Steal from American clients or NO DEAL, they must have said! Come on now. Anderson and Strudwick were looking for commissions and E-Future was looking for some cash. It's not like they pre-screen their clients to guarantee future corruption, headaches, and possible legal remediation.
Since going public, E-Future has strengthened their accounting standards dramatically and no longer must warn about weakness regarding internal accounting control deficiencies. Sean Zheng is a nice addition and has demonstrated professionalism and transparency to distinguish itself from other Chinese stocks trading in the USA. If they were going to cook the books, they could have at least baked a profit! Growing revenues while operating at EBITDA even is not sexy, nor does it attract investors for a pump and dump - but it is the mundane way that most companies grow - tough, daily slogging through problem after unexpected problem, trying to keep up with immediate expenses and remain cash-flow neutral while continue to have vision for the long-term implications of decisions that have no reward in terms of immediate gratification.
Among a host of other reasons that guarantee the legitimacy of this company, take a look at the recent partnership with KRONOS. Aron Ain's (KRONOS GLOBAL CEO) twitter page boasts the following...
Aron Ain @AronAin
Official signing in Beijing today w/ eFuture, leading SI to 2000+ retailers in China. #Kronos will work together to promote best practices.
I linked to a news story with photos and analysis of the partnership earlier this week. I will state again that this will have no immediate material impact on the company, but it certainly does something to boost the profile of E-Future in terms of trustworthiness and a stamp of approval and legitimacy of the host of sotware and service contracts in claims to have.
Top 100 software companies in China by revenue, efuture listed 39 based on information compiled in 2010. http://www.pwc.com/gx/en/technology/publications/global-software-100-leaders/compare-results.jhtml.
Still think this thread is waste of energy because the audit season is over -
Efut and 95% of the Chinese companies passed a more stringent audit including cash verification process - efut also has CFO from Motorola who has dramatically more transparent numbers and this was pointed out by their auditor . Tbet and about 5 other companies failed their audit . Last year their was 25-35- this year only about 5-6. The companies that survive will be dramatically stronger coming out of it . That's how capitalsm works . In addition , the chairman of the audit committe for efut is Brian lin. Brian Lin Company - china fire and safety (cfsg) went private thru Bain capital at 9$ or 242mill or 2 x sales which gives efut huge credibility . The president is from IBM , the CFO is from Motorola . 12 insiders boughtb300k shares at 5.37$one year ago - the Company paid back last 1million in debt to USA investors 6months early - the Company doing 400k buyback now thru top 3 USA firm . However , I feel bad for the guy with Tbet or anybody involved with what happened . However, everybody knows that's why all Chinese small caps trade a huge discounts today - at the end the market will clean out all the weak ones and the ones remain will be more transparent and stronger when the recover happens - that's what happens to all assets - boom - bust- weak ones flushed - survivors huge recovery.
I invested in TBET thinking like you that there is no way it would be a disaster. Well, TBET is a FRAUD and a disaster.
To cap it, TBET has refused to say a single word to its battered shareholders. The board observers from Anderson (same company behind EFUT) is in cahoot with TIBET management in this scheme. They stole the IPO money raised last year and have dissappeared.
YOU MUST be a fool to remain in any chinese stock. The only way to play tem and make money in USA is through SHORTING. The chinese scams hav proven beyond reasonable doubt that they cant be trusted and they are PIGSSSS
5. Inaccessibility of management and investor relations team when the stock begins to plummet.
A. In E-Future's case, management can be reached up the whole corporate ladder and they invite investigation and hard questioning about the ways they conduct their business. I've never had to wait more than one-business day to talk to the CFO or Troe Wen of IR when I called the company. NEVER. And I've been calling them for years to certify certain things which I find out through strategic web searches regarding new products and/or partnership listed on extrenal (non E-Future) websites.
Given all of what I do know about E-Future and the way it conducts its business, it may very well be a short-raid. I don't want to be one of the many thousands posting on this board asserting that it is one thing or the other - there is really now way that I can know who is selling and why they are selling. I can only deduct reasonable conclusions from what other posters share as to their motivations and their (sometimes false) assertions and arguments (sometimes very poor).
It may be time to buy some more shares, but I'm going to see how far this can be pushed down this time before I add more. Taking into consideration how little liquidity remains here, there is no short-term limit to the depths at which E-Future can fall. The greater the fall, the greater the eventual returns if this company is anything but outrightly fraudulent (which we have ABSOLUTELY no indication of and all information that is publicly available would lead one to the opposite conclusion).
And if the company is fraudulent in any way, please, share the details here. Anybody posting nonsense like TBET and EFUTURE are related in any way should show proof - as there is absolutely NO reason to believe that is the case. Assertions of a shared office come from some board *A*S*Serters which absolutely no proof while listed company addresses over time show no such overlap EVER. Corporate offices distanced by 1,700 miles in totally separate sectors probably don't share much more in common than my local restaurant JUBES in Massachusetts has co-conspired with a local pet store in Austin, Texas. Point is... no connections! If you have some groundbreaking relevations - prove it. It shouldn't be hard if the assertion has any legs whatsoever!
Has anybody else here documented the Job Postings on various Chinese websites? I knew they were moving into the cloud services well before they actually released that information. They were hiring ANDROID developers and mobile-application developers LONG before their SFA cloud service was announced. I didn't know in exactly what capacity, but I knew. When employee hirings that are posted and filled come before the product claims , that should be taken as a positive sign against the likelihood of corruption.
When one sees offices in many provinces in China filled with employees moving to and from jobs sites, that should be seen as a sign against fraud and misleading or outrightly false claims of whether the business is simply a shell vehicle for theft or a viable, competitive business. It is the latter in my opinion, beyond any reasonable doubt.
Feel free to argue any point that was made. It sure looks bleak right now considering how many bright-eyed investors have been fleeced by investments in China through US IPOS, but I think there will be a light at the end of this tunnel for the survivors - of which EFuture will be one of the ones left standing.
Remember, it is claims of
1. outright fraud and falsified contracts to related parties to wash money clean before pocketing the ill-gotten (stolen) IPO money through a less regulated, less public partnered company.
2. inadequate financial reporting
A. http://www.sec.gov/Archives/edgar/data/1489077/000114420411063286/v239528_10q.htm )
Notice the trend - NO CASH FLOW REPORTING and very limited financial details that can't help to build trust or buttress reliability upon issued numbers.
Now check out E-Future's quarterly
Notice any diffences? Night and day in terms of ledger line detailing of cash flows and gerneral transparancy.
3. False Contracts with Un-Named Parties where the funds are simply deposited into the bank account of an executive or an accomplice of the executive.
4. Hiring of little-known auditors to rubber-stamp company issued paperwork and financial documentation. Such auditors may have little practical knowledge to effectively conduct an audit, but don't mind taking the fees that public company audits provide them.