a $5 plus eps run rate. But the cap ex irequired is in the 300 mill range, and in addition they need a lot of working capital to support AR inventory etc for their current rev run rate of over 1 billion.
Chinese small caps like GURE and GPRC have no such need for their cash, which equals over one half of market cap and both have cash pouring in.
A point about the preferred is that they were created as an investment vehicle to Morgan Stanley Asia private equity, and with such an investment they have two members on the board of directors. This is what erases any chance of possibe fraud as apposed to the mulitude of seemingly undervalued stocks in the chinese small cap sector. Also the convertible value is $6.25 a share and that was years ago, when EPS run rate was less than half the current $2.64 if one annulizes q3 results.
On the downside, Mprgan stanley will likely team up with management and take the company private at a fraction of what it's worth. See YONG where they had a 50 million dollar preffered convertible investment. One can't blame management for doing such as it is being ignored in the US market, thus instead of $20 we will likely get a measly 6.5-7 dollars.
learn to do DD.
for 6.5 to 8 bucks, which as obscene as that is, is a likely possibility. given the ignorance of the US investor community, not to mention the H-town maggot factor.
Are you insane? Do you not understand what a stock trading at 2 times earnings means? Think of a bond paying 50% interest, and that is if there is no growth going forward. Don't bring up some minor nit pick thing as a means of explaining, why, at the very least this isn't a 20 dollars stock, which it would be if it were trading at CAAS multiple.
Selling continues and buying continues, looks like we'll sit at these levels for awhile. If the game-changing transformation quarterly resutls didn't move a stock that trades at less than 2 times it's EPS runrate of $2.54, I can't see any catalyst on the horizan that'll get us trading at even a mealsy 5 times earnings mulitple like CAAS, a chinese car part producer that doesn't have the backing of Morgan Stanely Asia.
now that any sane individual realizes that was just plain slander, shorts say never mind, and now move on to questioning some aquisitions, oh yeah and AR days outstanding that was suppose to be a big deal, dropped like a stone, so there's another never mind.
Salt in the wound, boys.
What you clearly can't comprehend is the numbers on THIS quarter are a new development, they are a step up, a game changer, they have an entirely new story to tell. The financial metrics are now mind-blowing, more so than the previouis quarter, the first half of the year. They have proven they can execute, they have proven they can sell out most all of the new capacity that taylors to the high end of the market, where margins are higher. This particular quarter is a game changer. And the problem is you don't realize the ramifications of what just happened operationally. Most investors have an excuse, they don't know the story. They don't know the financial backing of Morgan Stanley Asia. Those aware of the story, espcially those like the whiner and his investment house are in a postion to bring it to the attention to the likes of Oberwiese. If I could pick up the phone and talk to them, they would do the DD and start accumulating a sizable postion But instead this turd just whines on the conf call, and it sounds like he is starting to unload shares, which will continue to pressure the stocks share price.
don't think there was any reason to jump back in. If the results didn't get a price jump nothing will. I'll keep a core position as this will be free cashflowing $5 a share a couple years hence, managment is top notch and executing to a tee, and above all else in the small cap chinese stock enviornment, morgan stanely asia's 100 million investment and two board seats make fraud out of the question. Also of note they are targeting the mid to high end of the chinese market, a market that just recorded 20% plus growth during the last month, and the high end is growing faster, and plastics is making a larger component of cars all the time. i.e they are in the hotest of the hotest markets on earth.
but this doesn't mean the nonsensical selling won't stop, nor does it mean a small cap hedge fund can't naked short this down a dollar any time they want, even without the threat of fraud.
Extra... Extra read all about it. Shorts rejoice. He may have been wrong about them not having any cash and virtually everything else, but you just wait.
if the Cash actually exists, what does that do to your arguement of 90% of the revenue is made up? Over 100 million in cash had to come from somewhere, as in actual Sales. And so your responce to that is never mind. Go onto box number 3. Some guy from Florida 5 years ago that has nothing to do with the company. When are you going to tie NQ in with the Kennedy Assasination?
Have no idea why he thinks an IR push is going to help with credibilty, when they have Morgan Stanely Private Investment Asia sitting on the companies board and providing $100 milllion dollars in convertible preffered shares, that convert at $6.25 I believe. They are putting up shinning new cutting edge capacity, and selling it. i.e full capacity is now 390.000 tonnes and they sold over 90,000 tonnes in their latest quarter. Despite the 2.54 EPS run rate, I think the whining turd is about to throw in the towel and start selling the shares he claims his firm has held for 3 years. Good riddance.
My disappointment in terms of shareprice is that it seemed that artfull accumulation has been going on for the better part of the year, and after such a transformative quarter I assumed they would bump up their buying range, but that seems not to be true, instead we get the whining turd factor and with it flat to slghtly down shareprice.
In short, managment is clearly world class and Morgan Stantley's involvment-my god, 2 members on the board of directors--gives the companies results complete and utter credibilty. It is not there fault the h-town shorts rule the day in the sector.
new facility is finished. This is a big boy value pick with world class management countining to build cutting edge facilities AND ramping up sales as capcity come online. Yet we get hissy fits from mindless turd on conference call blaming company for the H-town "berg, stein problems. What happened to holding ones investment to take advantage of a tranformative quarter, where the eps run rate jumped 100%, when it will jump another 100% in two years hence.
I liked the Peter guy, who I have heard on various conf calls for chinese small cap companies. He has vistied their facilities and pointed out the efficiencing compared to old capacity. Also of note Morgan Stanely private invesment Asia and their two board seats will bide theiir time ready to help take the company private only to IPO it down the road and have on their hands a company free cashflowing 5 bucks a share once the new facility is up and running.
What you don't seerm to realize is it will be taken over privately for a fraction of it's true value, see M S asia's involvment with YONG. Instead of of 8 times eps or 20 dollars a share we will get $7.
But that will be fair from the companies standpoint as they got screwed by the H-town maggots, and we as investors are causualties. Thanks to the Greenbergs of the world.
As if your ignorance wasn't clearly on display enough, by the few lines of drivels you've offered up, you should be aware that MS has a history of teaming up with management to take the chinese company private, ipso dumbo, it is their best interest not to bid the price of the stock up. Might want to take a look at Younge International.
Not to mention their investment of $100 million in preferred shares. New capacity ramp has increased earnings almost 100% over previous quarter and leaves them trading at well under 2 times annualized EPS runrate of $2.56.
Chines auto sales were up over 20% last month and the hotest of the hot were the imports which is were CXDC's product is sold into. And further expansion of capacity in the next couple of years will bump EPS up over $4 a share. GURE is up over 20% and we will be lucky to break even today.