might break $4 today
yeah - great negative growth qoq and revenues up just marginally yoy on decreased margins despite a string of supposedly accreditive acquisitions
but go on and buy more of this pump and dump
another guy who still hasn't got it. Gross margins are meaningless as you have to look at the ballooning costs for marketing and commissions which I have already pointed to several times here. JRJC is just buying revenues which won't produce any tangible results over time. Once they scale back commission spending the agents will move the customers elesewhere. The sell-off in the shares was caused by the disclosure of HOW they generated the revenue growth.
It is really your problem not getting the point here - the shares are down $2.50 from post-earnings highs and will fall much lower. I was straight on while you are losing big time.
covering here for another huge gain but what expect this to move much lower going forward
the revenue increase is mostly due to the precious metal trading segment in which the company attracted agents to bring in customers by paying huge commissions. Once they stop paying excessive commission rates the agents will move their customers elsewhere. Company is effectively BUYING revenues without getting a firm customer relation in return. SELL.
as investors will continue to head for the exits given the huge risks of the new business model
the shares sold off once investors realized that most of the revenue increase is due to their shady precious metal trading segment with the company paying huge commissions to promoters for bringing in their clients. It is pretty clear that these industry will get regulated sooner or later by the Chinese government so this doesn't look like a sustainable business going forward. Currently the company is just buying revenues in return for giant commission payments - this can't go on forever.
1) they failed to deliver on expectations set by themselves
2) they took on a huge chunk of debt (instead of using their inflated shares as a currency) to acquire a company which had declining revenues in 2013 and measly margins
3) Q1 will be very weak
4) 2014 will show zero growth
frankly you got to ask WHY anyone would want to own the stock given these characteristics. The shares had a huge run as the company's tiny battery business was picked up as an alternative energy play and gained massive momentum.
but investors are backing the wrong horse in this case as this is just a small military supplier which has done pitiful for many years and will so going forward. Management explicitly stated on the last call that there are no intentions to enter the consumer market.
red as predicted - covering here for another $4k gain - the new focus on metals trading leaves the stock being uninvestable going forward. What a disappointing change in the business metal
that's just plain dumb - solid 5-year-returns from hyped stocks are almost impossible - perhaps you should ask fellow ARTX investors which have been in this for at least five years about their returns.
actually it is the longs that are getting screwed here now that the company revealed that the revenue increase is mostly attributable to the shady metals trading business where the company is paying huge commission for clients brought buy outside promoters. Unsustainable and no margin business. Sell.
obviously investors don't like the new metal trading focus and the huge provisions paid to agents
most of the revenue increase generated from metals trading which carries close to no profit for the company due to giant provisions paid
really shady new business model and absolutely unsustainable - for sure I can buy clients by paying agents huge commissions but this doesn't help the bottom line
new lows with market at day highs - this thing is getting better every minute