At first you didn't seem to understand the company, but it appears you are learning quickly. Good for you.
Moreover, if anybody needs further evidence of my reliability in posting on these boards, check out what I've posted over the last week and then listen to the conference call. The CEO reiterates points that I have already made recently as I regularly search in Chinese for articles of relevance regarding E-Future. I tend to share what I know here on the boards because I don't plan on buying much more as I have been diversifying my portfolio over the last 2 years.
Clearly, you don't understand the stock market and how to understand subtlety. This was a great report and they are well positioned for much better, high margin, fast-growth results in the near future.
You are way off on this report. The only reason E-Future booked 31.8 million last year was because they booked a $3.0 dollar hardware contract that was completed earlier than expected in Q4 2012. You take that away from Q4 2012 and add it to 2013, and you'll see that they grew 20%. Split the revenue half and half and they grew 10%. Moreover, it's the revenue mix that is telling the tale. They are relying less on the more-or-less profitless reselling of hardware and are shifting their revenue to more profitable in-house, proprietary software and services.
Moreover, the share price is a joke. The only reason that people accept the current price is because they have internalized it as the fair value because it has stayed so low for so long. The reality is that the price is absurdly low which is why the stock has been steadily moving up. There is no good reason why a company that is going to EBITDA positive this year while at the same time heavily investing in 2 new initiatives that almost define the "Blue Ocean Strategy" should not be trading at 2x revenues at the very least. 3x to 4x revenues would be fair, but in this market, American companies in the same sectors are trading at 8x to 10x revenues. E-Future could be $20.00 and be conservatively valued - right now!
Most small companies have to be operating at pretty substantial losses if they are taking on this many new initiatives relative to their current size. E-Future could stop these initiatives and be immediately profitable, but all the development of such initiatives have mostly been expensed, and if these initiatives pay off, and recent evidence show that they are, they will begin to add incrementally to revenues and eventually be very high margin profit machines due to the nature of these newly entered markets with high barriers to entry and a need for a very efficient, large scale team from multiple disciplines working together - which it appears E-Future has built up over time.
I think this is the most positive development in E-Future within the last few years. Yan is showing that he can come up with other products besides POS-ERP software for brick and mortars. This seems very likely to be Mr. Adam's 2nd major success in his entrepreneurial life. He has also surrounded himself with a loyal and hard-working group of executives with enviable business ethic. This company continues to do everything right despite the criticisms, and there long-term strategies and temporary losses they have been accruing in pursuit of more stable long-term growth are starting to brilliant rather than bumbled.
I see $30.00 a share being a conservative valuation if E-Future can continue to expand this idea and fears surrounding small-cap Chinese stocks continue to abate.
Again, Yahoo! won't let me post links, but there are lots of photos showing lots of people crowding into the Concept Store which aims to integrate the best of offline and online shopping into one shop.
I'm not exactly sure if the 10,000 number refers to total new mystore users that have signed up in the last month, or users that signed up because of the unique promotional activity from that one retailer, launching MyStore as a trial in 5 of there 20 or so stores. I believe it is the latter.
It did come from the company.
Go to there Chinese Language Website and Look Around.
If my facts are incorrect, it is because of translation issues.
I don't need sources.
I've been the most accurate poster of news, usually before the PR, over the last few years on this board. I don't want to work around Yahoo! Filters, so you'll have to go and look for the information yourself. It is out there.
You don't have to believe me. The stock will react and the news will be released eventually.
From what I can tell after reading an article online, MyStore has signed up 10,000 new active users this month alone from only one store, Kuan Guang Supermarket Group, or in Chinese language, 宽广超市集团.
Average per customer purchase totals have increased as much as 66% on same-day year over year comparisons with much of the difference being credited to MyStore's targeted discounting of goods based on personal offers to specific customers which depend on their preferences and consumer choices based on past purchases and "Likes".
If you are wondering whether E-Future has announced this new relationship and the success involved via Press Release, I can help. They haven't. So this is very bullish and positive news, especially the increase in average spend per customer during the trial period.
There is no debate over whether they release the information on the Chinese Version of the website. Of course, it's not the same exact Press Release. The information is for another market and is largely published to advertise the successes they've had to other potential clients. You can go to their website and check for yourself. There is no debate on this. I'm surprised you would call my credibility into question when I've always been accurate in the past.
I for one find it encouraging that their first priority isn't to please impatient investors,but rather to run their business and try to gain additional client wins.
There are lots of ways to release information publicly. If you are just figuring this out now, than that is the problem.
I don't think there have been more than 2-3 press releases in the last 3-4 years that weren't known in advance if you check around and/or search for articles written in Chinese. That's why you should check the Chinese Version of the website on a daily basis if it is that important to you.
I personally didn't buy anything even knowing the information because mystore still has a lot to prove before it makes a material impact on the total value of E-Future as a company. E-Future has had a lot of pet projects, but the only consistent business they've been able to generate has been through their software suite of ERP and POS applications. Cloud Service Offerings and Social Shopping are new pet projects, so while this news is better than none, mystore has to achieve much greater scale to make a mark in social media shopping.
Small baby steps are encouraging, but don't add much value to the company. If we see further cooperation amongst new retailers AND a positive response from their consumers, then the company will reflect the value of mystore. Until then, this is still in trial mode.
Wasn't a lucky guess at all.
This information was posted on the Chinese Version of E-Future's website for about a week already. I tried to post the link last week, but Yahoo's filters blocked the post, so I just gave up and decided to let them announce the news on their own.
The reason this stock is so cheap is because it is still lumped in with the Chinese micro-cap scams of 2010-2012. Before there is more cross-border rule of law to deal with US-LIsted Chinese stocks, Chinese stocks will trade at a discount.
The discount here is a bit extreme, but clearly this stock holds risk until they demonstrate consistent profitability in the neophyte Chinese High-Tech Service Industry.