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Ever-Glory International Group, Inc. Message Board

  • chazzburgundy chazzburgundy Mar 30, 2011 11:38 AM Flag

    2010 results...

    look solid to me, but this stock appears to have no legs. Frustrating. Zero volume today.

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    • too bad they borrowed 18 million from the bank.

      If they diluted stock ownership to raise capital the stock price would be $6 to $8.

      Now there is no float so no interest and the risk is high on the bank loans.

      They should've raise capital from institutional investors then there would no risk on the bank loans.

    • ryan666 Mar 30, 2011 9:42 PM Flag

      Kind of solid I guess. What did you like about the results? Keep in mind that when comparing with the reduction in sales in 2009, its not difficult to make this years results look good.

      But ya, sort of ok results.
      - Net sales were right in the middle of what they were expecting ($121-141). (Thats from last year's guidance. I didn't check the 10-Qs to see if they revised during the year.)
      -Hit the low end of their guidance for net income ($6.5-7).
      -Margins keep sliding though. The full year were even lower than Q3 which means they must have slid quite a bit in Q4. Can't really blame them for raw material costs but its lower margins all the same.
      -The new store openings guidance for 2011 was a little lower than what you might expect given they're targeting 1000 stores by 2015 (I assume thats still the plan).
      -Still have no idea how many of their stores are actual stores and how many are store-in-stores (ie. LGG racks placed in another store). I assume its mostly the latter. 293 real stores should generate way more than $29.3 million. Thats only $100,000 per store (sales!, not profit).

      Those are just the things that caught my eye. Maybe someone else can post their thoughts. I'm no expert at this by any means so would appreciate some alternate views or corrections.

      Also I didn't really get what the 7 cents in reduced exposure to derivative liability was.

      • 1 Reply to ryan666
      • ryan666 Apr 4, 2011 1:16 AM Flag

        The 10K released the next day answered my question about stores. I'm sure you've all read it by now, but here it is as a reference:

        As of December 31, 2010, we had 293 stores, including 31 flagship stores, with each store generating average revenue of approximately $12,000 per month. The majority of our retail stores are situated as stores-within-a-store in large, mid-tier department stores located in over 20 provinces in China.

        So roughly 90% store-in-stores and lowish revenue from the flagships.

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