Basic weighted average shares outstanding 36,425,094 compared to q1 2008 25,015,089
Diluted weighted average shares outstanding 46,760,632 compared q1 2008 30,508,410
and now?? Tell me this is not dilution!!
If you rely on Google translation service to do your stock DD research, good luck with your investment. As I said, I don't short a stock with $3 gain max.
That's a lot of questions for me to answer but unfortunately I can't for most of them. I don't have concrete idea whether the business is legit or not as I don't have first hand material to prove the company is a sham. But my first instinct tells me that the company is operating under some kind typical old tricks that most of Chinese frauds were operating on. First, it has big name (China recycle... like China Media Express (CCME), duh! ), second it tries very hard to convince US investors that it operates in a hot sector with minimum competitions (as said in their SEC filing), third it made a lot of money and had famous US investment firms baking it. Well, when things looks too good to be true, it generally will be. I can tell you that Carlyle's investment does not mean too much as it happened in 2007 when a lot US investors blinded throw their money on any Chinese related issues. And a lot of them was later revealed as plain fraud. That's the experience I learned from many years in investing in China related companies. Several things you have to ask yourself are:
1) if business is so brisk, why they have to sell their common shares to ordinary main street small China investors for merely $0.3/share. A lot of you said this was old news. Well, tell me then why this is old news and won't affect the share price. You know the shares count were swelled from under 30 million to more than 60 million in 3 years, don't you? 2) if the business is so good as they claimed in their filling, why they wouldn't withdraw their listing from US market and re- list them in Chinese stock market and still endure such a depressed stock price.
When you invest in a company, you need to be rational and calm in stead of being emotional and blinded fall in love with what you bought. Especially when you dealing with foreign stocks which you have very limited knowledge about. I maybe deadly wrong about prospects of this company but now my doubts about the company is prevailing for now.
Carlyle investment happened in Nov. 2007, a time amid massive fraudulent Chinese reverse mergers were listed into US market. The investment is not a guarantee that the company is not a fraud as a lot of such companies attracted US VC firms to invest in them. I can give you a few names like CCME and sino-forest which all got famous US investors's backing and all later being revealed as big frauds. Here is an article in 2009 in Chinese that says how some small investors in China was duped into investing in original shares of CREG at $0.3/share and wanted to get their investment back but couldn't.
2009年03月28日 07:50沈阳晚报【大 中 小】 【打印】 已有评论0条
I want to ask you a couple of questions. Are you Chinese or a US investor? If you are a US investor, do you have capability of reading Chinese? Being a loyal CREG investor, what do you rely on for you DD research? Good luck with your investment.
the company looks like a plain fraud to me. You can look yourself at their Chinese site for the past financial report. The outstanding shares swelled from 30 million ago to 60+ millions in just 3 years. Why? baidu the their Chinese name and you can see that a lot of negative news related the company issuing original shares in Chinese market at $0.3 before they went listing in US and a lot of those street investors were inquiring how they could recoup those investment. The company were advising those people to pay US $90 to register those shares and to be eligible to sell them in US open market. That's why you've been seeing the rapidly increasing shares outstanding. So if those investors bought the shares at $0.3, they would be in the money for 10 fold. What you would expect them to do? This is typical scheme for some shady Chinese companies to cheat unknown US investors into this kind of fraud. You have to ask yourself, if the business is so bright as they claimed. why the hell they want to sell their original shares in China for merely $0.3 as share?!!
Call me stupid if you will. I know truth hurts. I was fighting with a lot of naive US investors on another big fraud "CCME" 3 years ago. You can search my posting on that company in here and see what I said. Eventually, the company was delisted and was trading on pink sheet for a few cents. Is your money and I don't gain or lose if you gain or lose. I don't short a stock with only $3 gain.
I was burned on another Chinese fraud called Fab international 'cause I believe that investment by Jim Rogers was the guarantee that the company is free from fraud. But I was deadly wrong. Guess what? That company used the same tactic of selling their commons to Chinese main street small investors at $0.5 and they promised that the shares would be worth a lot of more if listed US. It did for a while but was quickly halted by being revealed as fraud by some smart investors.
I am not shorting the stock. Just want to let people know what I found out. It's your money and nobody cares whether you lose or gain. Best of luck with you sound investment anyway because you are going to need it.
P.S. I don't short a stock with only 4 point gains maximum.
a share. Back in 2007, anyone in China could get the shares at that price. They hired some fake investment firms to lure the investors to buy the original shares at $0.3/share. Now, those investors are in the money and they will come out to dump those shares at the market like no tomorrow. The company financials can not be trusted. This company is faking a lot of news to let you believe that they have legitimate business. They used to be a company selling software (not created by themselves) as middle man.
the company used to be called XiAn yingfeng tech. You have to be able to read Chinese to search it on bidu.com. XiAn is the place where a lot of Chinese fraud came from.
and promised them that they would list shares in USA and get the investment back. This is typical scheme for fraudulent Chinese companies to cheat money from small investors and then divert their liability to unknown US investors. Get ready to be exposed by Muddy Water.
and they are issuing 8 million more shares at $3.29 just 2 weeks ago.
if company is for real and making money, why the hell in the world that they need to borrow money at 12% interest rate.
on its Chinese website, the latest news item was from 2011. It recently borrowed two loans with 12% (!!) annual interest from a party which has direct business ties with the company. The company only has 120 employees who can support multi-million business in China? They also claim they don't have any competitions? Worse yet, someone offered 8+ million stocks at $3.28 just few week ago. Looks like a pump and dump to me. Be careful!
seriously, I have no idea what you are talking about!
I am long but your calculation is nonsense. No one pays 2.4k a year to SCTY. It's more or less 400-500 a year.