I think you will see a pullback because stock has made such a big move . But it getting bought big based on the future growth . The company grew almost sequentially 100% on the rollout of their new products . The Company did 13 mill in sales with 80% gross margins and lost 2 million . This is the start of the roll out so you could argue its going to get bigger. So if jrjc breakevem point is around this level of revenue . With 80%gross margins if they continue to ramp revenue they will generate tremendous amount of cash in 2014 and that's what the buyers are betting on . Theirs a reason stock has gone parabolic .
if they can grow revenue from this base they could have huge upside earning leverage in the future. The good news going after higher margin business.
You make money on the future not the past- They grew revenue 100% last quarter and lost about 1million-
the key this is beginning of the roll out of their new business-obviously you have no clue on this. If the growth continues at the trajectory with 70%plus margins they could be growing off dramatically amount of cash in 2014 that's why the stock went from 1-7$-
No idea-not from Asia -ha. I would think because efut has done good but not great compared to other big movers in the sector . Efut probably has average growth rate probably around 18% in the last 5 years so their moving in the right directions but it's not blockbuster . I'm hoping over time it will get a normal discounted value over time of 1. 5x sales which I think if they grow at that rate on say 40 mill on revenue , you get around 70 mill market value or 12$. The negative is growth stalls , margins come under pressure, new products stink . The upside is new products have huge penetration , growth expands and that could expand the multiple to say 3x sales which you could figure out the price .
The big move in USA Chinese stocks have been because of Buyers from Asia and in particular Hong Kong- This has been a huge trade for them. It makes sense because Asia investors have dramatically more understanding of Chinese company- USA investors have been underweight the group or sellers- Ie individual, funds, pension, hedge funds. You have seen monster moves from all big to mid cap Chinese USA listed companies- bidu-vips-yy-edu-ect. You could start seeing big moves from micro caps as money flows down the food chain. regarding Efut- for whatever reason Asia investors don't like the company that much at this time. If or when Efut ever moves i think it will be money flow from Asia investors that actually like Efut. good luck.
its on their website- Their's a tremendous amount of information on their website about the company, industry and what they see in their future.
Would wait to 1.75$ to average in more- Probably letting stock drop to take it private at low price- its the Chinese way
Whats your expectation for revenue, cash flow, and cash end of 2014? Whats your upside target potential? Do you think the company goes private? thx
Its the opposite of what people think- The speculations is: the reason he is not buying any more shares is he is thinking of taking the company private. The CEO can't buy shares in the open market at say 2.30$ then a month later take it private at 3$-That buy would be insider buying and his lawyers are telling him that- thats why no insider buying. Common sense if he had no plans on taking it private he would be buying shares down here. So if you see more insider buys thats a signal company is doing great and he has zero plans on taking it private.