masterpain - creed just confirmed that one of TSTC competitors has a "long accounts receivable cycle".
And creed - GRRF's market cap is $79.2 million. 2009 A/R's were over $100 million, just like I said.
Here's more info on GRRF:
"China GrenTech Corp. (Nasdaq: GRRF), one of Telestone's competitors in the Chinese wireless communications market, said in its latest annual filing with the SEC that it also had a large backlog of outstanding bills with those three companies and their local affiliates.
China GrenTech had $234.8 million in revenue last year, up more than 60 percent from the previous year. The company said it had $197.8 million in gross receivables and $130.7 million in net receivables. It noted that it typically sells some of its receivables to Chinese banks to help maintain its cash flow.
China GrenTech said its receivables turnover was averaging 292 days at the end of 2009, down from 469 days at the end of 2008. The company said $113.4 million of its gross receivables had been outstanding for less than a year. It said $34 million had been outstanding for one to two years, $34.7 million had been outstanding for two to three years, and $15.7 million had been outstanding for more than three years."
And since nole92 does shoddy DD, here is GRRF's liquidity statement in comparison:
"As a result of our revenue cycle and our long accounts receivable cycle, we tend to have more working capital toward the end of the year and the first part of the subsequent year and tend to have less working capital during the middle part of the year, especially the third quarter. Our ability to rely on cash generated from our operations to finance our working capital and other needs of our operations is therefore substantially limited. Accordingly, we are highly dependent on bank financing and the sale of accounts receivable to fund our working capital requirements and to support our liquidity."
But as I stated to nole92 already, he will surely have a positive spin for this also.
Creed just threw out one of TSTC competitors GRRF.
2009 numbers for GRRF:
Not as high, but TSTC has been growing at a faster pace.
I got to run for now...be back later