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I am meeting with a couple of SOKO's executives in NYC this coming Monday. If you have questions for them, post them here and I will get you their responses.
Same with me over the past couple weeks. Happy to keep buying and buying and buying at $4.
What else do they need to crossoff before uplisting?
SOKO $4.36
SOKF Fitness & Spa Group Hosts Investor Meetings in London, New York and Boston
PR Newswire - May 14 at 16:58
Company Symbols: NASDAQ-OTCBB:SOKF
HARBIN, China, May 14 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness center and beauty salons and spas in Northeast China as well as suburban Beijing, today announced that senior management will present at the Rodman & Renshaw Annual Global Investment Conference on May 17, 2010 at 2:50 p.m. BST (9:50 a.m. Eastern time). The conference is being held at the Grosvenor House Hotel, in London, UK.
SOKO management will also be holding meetings with members of the investment community in New York and Boston on June 7-8, 2010. To request a meeting or be added to SOKO&;s email list, please contact Lee Roth at soko@tpg-ir.com or call 212-481-2050.
Management&;s presentation for the Rodman & Renshaw Conference, which will also be used in the Company&;s individual investor meetings, will be available under the "Events and Presentations" page on the "Investor" section of SOKO&;s website at http://www.sokofitness.com/Investors/company1.htm . Following the live presentation webcast at the Rodman & Renshaw Conference, an archive will be available for 90 days.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .
For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: soko@tpg-ir.com
SOKO Fitness & Spa Group, Inc.
Shawn Qu
Tel: +1-908-208-8681
Email: shawnqu@sokofitness.com
Judy Jiang
Tel: +86-451-8770-2280
Email: judyjiang@sokofitness.com
SOURCE SOKO Fitness & Spa Group, Inc.
SOKF.. $4.36
SOKO Fitness & Spa Group Completes Construction of Lea Spa Xishan Club in Suburban Beijing
Grand Opening of SOKO's First Beijing-Area Spa Scheduled for May 15, 2010
HARBIN, China, May 13 /PRNewswire-Asia-FirstCall/ --
SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced that it has completed construction of its first spa facility
in suburban Beijing, the Lea Spa Xishan Club, located in the Xishan section of Beijing's Haidian district. Pre-opening activities for Lea Spa Xishan Club are already underway, with initial spa and salon clients having pre-paid for services at this facility.
Lea Spa Xishan Club, which the company has previously disclosed was under construction, is scheduled to open on May 15, 2010. The 15,000 square foot facility is located in a high-end residential and recreational development in the Xishan section of Haidan. The spa features 13 treatment rooms, and will be offering a full range of high-end beauty and aesthetic treatments, similar to SOKO's existing spa and salon facilities in Harbin and Shenyang, China.
Consistent with SOKO's existing spa and salon facilities in Harbin and Shenyang, SOKO expects annual visits at this new spa to ramp up during the facility's first two years of operation as the facility matures. In a manner consistent with some of SOKO's other facilities, SOKO has a 51% equity interest in Lea Spa Xishan Club through a partnership.
"The opening of our first spa and salon facility in suburban Beijing marks another significant milestone for SOKO. Pre-opening activity has sought to leverage our early-stage marketing efforts and the brand equity we have built in the region since acquiring our two suburban Beijing fitness centers in
December 2009," said Tong Liu, Chief Executive Officer of SOKO. "In addition, the location of the Lea Spa Xishan Club in the Haidian district of Beijing is consistent with our strategy of seeking to penetrate underserved markets (or in this case sub-markets within the greater Beijing area) that have attractive
demographic profiles.
Before the opening of this spa, Xishan lacked a facility capable of providing truly high-end beauty and aesthetic services, despite a growing upper middle class population that suggests the potential for high demand. This approach allows us to be a first mover in the region and, we believe, provides us with a significant competitive advantage. We
also hope to capitalize on our strategy of cross selling spa and aesthetic services to the members of our two suburban Beijing fitness centers. By deploying this model, which is consistent with our past practice, we believe that Lea Spa Xishan Club has the potential to perform in a manner similar to our spa and salon facilities in our base areas of Harbin and Shenyang."
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For
further information, please go to http://www.sokofitness.com .
To be added to SOKO's email distribution for future news releases, please send your request to soko@tpg-ir.com.
For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: soko@tpg-ir.com
Shawn Qu
SOKO Fitness & Spa Group, Inc.
Tel: +1-908-208-8681
Email: shawnqu@sokofitness.com
Judy Jiang
SOKO Fitness & Spa Group, Inc.
Tel: +86-451-8770-2280
Email: judyjiang@sokofitness.com
SOURCE SOKO Fitness & Spa Group, Inc.
I posted another article on SOKF at seekingalpha: http://seekingalpha.com/instablog/333239-dhh/68368-analysis-on-soko-s-8k-legal-documents
Here's a reproduction (although the original has better formatting):
As a lawyer, I figured I'd at least take a quick look at the legal documents relating to the recent 10million USD financing. You can sometimes find good information buried in these documents. The documents as filed can be found here or here
Below, I quote some of the more interesting language and follow up with commentary. I'm not a corporate lawyer, and I scanned the documents really (really) fast, so my analysis is by no means complete.
7.1. Make Up Shares . If the audited financial statements of the Company for the fiscal year commencing on June 1, 2009 and ending on May 31, 2010 as reported in the Company’s Annual Report on Form 10-K for such fiscal year (the “ 2010 Annual Report ”) shows that the Company’s income: (i) before income tax, (ii) excluding income/loss attributable to noncontrolling interest, and (iii) excluding costs associated with any facility acquisitions undertaken by the Company (“ SOKO’s Income ”), is less than $10,450,000 (the “ Income Target ”), the Investors shall be entitled to receive (pro rata between the Investors in accordance with their respective Purchase Prices) an additional number of shares of Common Stock up to an aggregate of 60% of the Shares issued pursuant to Section 2, or 1,875,000 shares of Common Stock in the aggregate (the “ Make Up Shares ”), according to the following formula:
(a) If SOKO’s Income equals or exceeds the Income Target, no Make Up Shares will be issued.
(b) If SOKO’s Income is less than the Income Target, then within thirty (30) days following the filing with the SEC of the 2010 Annual Report, the Company shall issue to the Investors an aggregate number of shares of Common Stock equal to the product of the number of the Make Up Shares multiplied by X, where X is 1.00 minus the percentage of the Income Target actually achieved, which shares will be divided pro rata among the Investors in accordance with their respective Purchase Prices as set forth on Schedule A hereto.
>>It looks like SOKO is expecting at least $10,450,000 in annual income before tax for the fiscal year ending this month. If SOKO does not meet that target, the new investors get additional shares. SOKO should not have any problem meeting that target as income before tax for 9 months ending Feb 28 was already 8.2 million.
7.3. Board Observer . For so long as IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. and their Affiliates collectively continue to hold two and one half percent (2.5%) or more of the outstanding shares of Common Stock, a designee of such Investors (who shall be satisfactory to the Company in its reasonable discretion) (the “ Observer ”) shall have the right to attend and participate in meetings of the Company’s Board of Directors. The Observer shall not be appointed as a member of the Company’s Board of Directors, shall have no vote as a director of the Company and shall have no approval rights with respect to any action of the Company.
>>New investor IDG gets to appoint a person to participate in SOKO board meetings. The observer won't get to vote, but should bring valuable insight as IDG is a sophisticated investor.
7.8. Listing of Shares. The Company agrees that: (i) if the Company applies to have the Common Stock traded on any Trading Market other than the OTC Bulletin Board, it will include in such application the Shares and the Make Up Shares, and will take such other action as is necessary or desirable to cause the Shares and the Make Up Shares to be listed on such other Trading Market as promptly as possible, and (ii) it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.
>>This might be a standard provision, but it shows that uplisting is at least somewhere on the radar screen.
7.10. Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital purposes and for potential acquisitions, facility development and other potential strategic initiatives.
>>This is nice. It means the company cannot waste the $10million by simply spending it on a huge bonus for employees.
Item 8.01 Other Events.
On April 16, 2010, the Company and the 2008 Private Placement Investors entered into a Settlement Agreement, pursuant to which the parties: (i) settled a disagreement regarding a US$200,000 penalty payment incurred as a result of the Company’s failure to effect a registration statement on Form S-1 on time pursuant to a prior Registration Rights Agreement, dated April 7, 2008, between them; and (ii) terminated an escrow agreement, dated as of April 7, 2008, between the Company and 2008 Private Placement Investors (the “ 2008 Escrow Agreement ”) and agreed to release to members of the Company’s management an aggregate of 8,000,000 shares of Common Stock which were deposited with the escrow agent under the 2008 Escrow Agreement to secure the Company’s obligation to the 2008 Private Placement Investors to achieve certain financial performance thresholds which were met. In satisfaction of the Company’s obligations under the Settlement Agreement, the Company issued 62,222 shares of Common Stock to Guerrilla Partners, L.P., 17,778 shares of Common Stock to Hua-Mei 21st Century Partners, LP and 8,889 shares of Common Stock to James J. Fuld, Jr. IRA.
>>I hadn't heard of this before, and I'm not too pleased with it. It basically seems like SOKO missed a deadline, resulting in $200k worth of dilution. IDG, with their observer, will probably make sure something stupid like this doesn't happen again.
8.1 Notices...
If to the Company:
No.194, Guogeli Street
Harbin, Heilongjiang Province
China 150001
Attention: Tong Liu
Fax Number: 86-451-8770-5544
With a copy (which shall not constitute notice) to:
Ellenoff Grossman & Schole LLP
150 East 42 nd Street, 11 th Floor
New York, NY 10017
Attention: Barry I. Grossman, Esq.
Fax Number: (212) 370-7889
>>On the face of it at least, SOKO seems to have retained reasonably qualified and ethical lawyers. It's not a one man shop.
Schedule A
Share Allocation
Investor
Purchase Price
Number of Shares
IDG-Accel China Growth Fund II L.P.
$6,470,800
2,022,125
IDG-Accel China Investors II L.P.
$529,200
165,375
Hua-Mei 21st Century Partners, LP
$2,100,000
656, 250
Guerrilla Partners, L.P.
$600,000
187,500
James J. Fuld, Jr. IRA
$300,000
93,750
TOTAL
$10,000,000
3,125,000
>>Who is this James J. Fuld, Jr. guy? How did he get to participate in this in an individual capacity? Because I could have almost fronted $300,000 and would have dearly loved to participate at $3.20.
5.3. Founder Lock-Up . The Founder and the Company shall have duly executed and delivered the Lock-Up and such Lock-Up shall remain in full force and effect.
3. Lockup . From and after the date of this Agreement and through and including the twelve (12) month anniversary of the Closing Date under the Stock Purchase Agreement (the “ Lockup Period ”), the Holder irrevocably agrees it will not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or announce the offering of, any of the Holder’s Shares (including any securities convertible into, or exchangeable for, or representing the rights to receive, the Holder’s Shares). In furtherance thereof, the Company will (x) place a stop order on all of the Holder’s Shares, (y) notify its transfer agent in writing of the stop order and the restrictions on the Holder’s Shares under this Agreement and direct the transfer agent not to process any attempts by the Holder to resell or transfer any of the Holder’s Shares in violation of this Agreement. Notwithstanding the foregoing, the undersigned may sell or otherwise transfer Holder’s Shares: (i) as a bona fide gift or gifts or pledge or pledges, provided that the Holder provides prior written notice of such gift or gifts or pledge to the Company and the Investors and the donee or donees or pledgee or pledgees (as the case may be) thereof agree to be bound by the restrictions set forth herein; provided, that any such gifts or pledges shall not, in the aggregate (adding up all such gifts and pledges), exceed eight percent (8%) of the outstanding shares of Common Stock at the time of any such gift or pledge; and (ii) on death by will or intestacy to the undersigned’s immediate family or to a trust, the beneficiaries of which are exclusively the undersigned and a member or members of the undersigned’s immediate family, provided that the transferee thereof agrees to be bound by the restrictions set forth herein.
>>The lockup agreement and provisions may be the most interesting part. The CEO and Chairman Tong Liu is not able to sell his shares for 1 year. As I recall, he owns over 50% of the company. No insider selling for 1 year! If he is that confident in his company, I sure am too! I am buying more.
Disclosure: Long SOKF; 10% of my portfolio, going to 20%
Themes: China Stocks: SOKF.OB
SOKO $4.35 From ALPHA..
- Independent Information and Valuation Multiples
SOKO Fitness and Spa has disclosed a substantial amount of information through its financial statements, earnings calls, presentations, and investor's website. Based on this information, a number of excellent articles have been written about SOKO recently, e.g. here, here, and here. All available information, however, has been provided directly by SOKO and tailored to western investors. With SOKO being a Chinese microcap, this is obviously a concern and a downward pressure on SOKO's multiples.
This concern with quality, independent information (or lack thereof) was evidenced by SOKO's recent price action. On April 23, 2010, the S&P reached its high of the year. Shortly thereafter, on April 29, 2010, SOKO announced a 10million USD financing via issuance of 3,125,000 shares to IDG Capital Partners and Guerilla Capital. The recent market correction should have been the perfect catalyst for SOKO's price to pullback and fully reflect the dilutive effects of the financing. Based on the dilutive effects alone, SOKO shares should have fallen from $4.65 to $3.80. Considering the recent market trend, the shares should have fallen even more. Yet SOKO sits at $4.30 today, and its low over the past couple weeks was only $4. Why such strength? I believe the dillutive effects of the offering was offset by the reassurance that large institutional investors, with access to more complete, independent information was willing to put 10million USD into SOKO.
As more information gets out, I believe SOKO will attain the higher multiples it deserves. Its current P/E ratio is under 8.
Many investors are aware of the website http://www.sokofitness.com. It is disclosed in many SOKO documents and may be found through search engines. This website, however, is solely an investor relations website. It is presented entirely in English by an investor relations firm and is clearly not directed to SOKO's Chinese speaking customers. I determined that SOKO has an additional website while looking through its February 2, 2010 SEC filing entitled, "SOKO FITNESS & SPA GROUP, INC. - FORM S-1/A." The filing stated: "We have developed a website for the members of our fitness centers that allows them to, among other things: consult with our team of professional service providers, make appointments, hold on-line discussions with our staff and other clients and review educational materials."
I reached out to my resources in China and determined that one of SOKO's customer facing websites is http://www.yogawave.com.cn/home.asp. Google translate works fairly well, showing full class schedules, additional instructor biographies, a robust online appointment system, and some impressive pictures. The website also states that SOKO plans to expand at "a very fast pace... expecting 40 national fitness centers and 30 million goal customers by 2012." This, of course, is entirely new information. In SOKO's most recent earnings call, management would only reiterate guidance for this calendar year (7-9 new fitness centers and spas), and declined to comment on 2011 and 2012 expansion plans. SOKO clearly intends to further accelerate its plans, and its recent financing should help.
This second website, however, seems to only cover the Harbin and Shengyang fitness centers. I am trying to determine if other websites cover other SOKO facilities (e.g. spas). At the moment, SOKO does not seem to have a consistent branding strategy, with few of its facilities sharing a common brand name. Going forward, this is something they should work on, in the physical world and on the web.
SOKO's newly acquired Beijing fitness centers seem to be covered by only a simple website: http://shang.hlgnet.com/charmshaper. Because the Beijing facilities have existed for some time prior to their acquisition, however, there are Yelp-type customer reviews, e.g. http://www.dianping.com/shop/1904935 (Google translate). Most reviews are quite enthusiastic. Customers say the facilities are nice and high-end, and the Yoga classes are full. A few people comment on the high prices, but that's what makes for SOKO's high margins and is fine as long as people still pay. By the way, the addresses provided on SOKO's investor relations website are useless if you want to prepare for an on-site visit because they are incomprehensible English translations. I obtained the Beijing addresses by calling the phone numbers provided on the website. You can also get them by contacting SOKO's investor relations firm. The Beijing addresses are: 1. ???????????; and 2. ?????????????????. I mapped out these locations in Google Maps, and they are consistent with management's disclosed strategy - out in the suburbs where there is less competition, about 1 hour away from Beijing's center.
In sum, I am happy to report that SOKO's management has, as far as I can tell, been honest with us. I identified no nasty surprises and the Chinese websites actually lead me to have more faith in the company and its business strategy. Although we still do not have complete, independent information about the company, the information I found has been corroborative and, if nothing else, assures me that SOKO exists. As more information becomes available, SOKO's multiple should reflect the fact that it is a promising growth company. I am long and buying more.
Disclosure: Long SOKF.OB - 10% of my portfolio, going to 20%.
Themes: China Stocks: SOKF
Posted some research on SOKO here: http://seekingalpha.com/instablog/333239-dhh/67959-soko-independent-information-and-valuation-multiples
Been adding to my position the last week or so. Not done yet. Love this company.
OTCJournal still bullish on SOKF :
http://seekingalpha.com/article/204003-market-correction-highlights-chinese-small-cap-opportunities?source=yahoo
so much for any meaningful pullback I guess. Hopefully this can have a positive affect my getting more eyes on this gem.
all in all I feel that they got a good financing deal that enables them to rev up expansion plans and leave competition in the dust. I like the fact that it's only 18% share dilution (albeit at a 30% discount to current market price) plus:
no warrants, no placement agent fee (typically 6% of proceeds) or overallotment of shares, 14-month delay of investor's resale right. So that saves us shareholders lots of additional expenses.
On a trailing eps basis, looks like they paid 7.9x 2009 eps which is reasonable for an OTC stock, with no sweeteners.
I took a look at some recent PP with some other stocks to put things in perspective:
Stck Date of PP Shares Price Sweeteners 09eps epsx
CPQQ Nov 30,09 4.167M $1.20 1M warrnts 0.280 4.3x
PUDA Feb 11,10 2.855M $4.75 15% ovrallt 0.681 7.0x
CNAM Apr 21,10 1.538M $6.50 1.54M wrrt 0.507 12.8x
SOKF Apr 29,10 3.125M $3.20 no wrrt/fee 0.406 7.9x
I am long and will stay long. People selling on this news will truly regret it 6 months from now. I just think current shareholders would of payed more then $3.20 per share. Would you not of added if they offered shares at $4? This is a steal at current prices for long term. Like I said the institutions have just about 0 risk. I guess its true what they say the man with the money has the power! They have great cash flow and accounts receivables are not of a concern like most other China companies. Plus margins are very high and have stayed that way an actually have increased slightly!
I think this will drop in the short term but getting the big guys involved could spark more volume and interest thus raising the price.
SOKF..$4.31
I bought a couple at $4.31 and and lowered the remainig order.. I have placed bids just above $4.00 and am willing to add to my position at that level.. Selling in SOKF has always been by the uninformed and as my first purchase was below $2.00,, my Ave is still tollerable.. SOKF has never pissed it's funds away and the discount for cash without wt's is a good deal for shareholders..
The funds that acquired SOKF stock are prob. long and will sell some to bring thier ave cost down.. The inability to sell the newly acquired shares give SOKF ample time to deploy funds that will make this dilution accretive.. I disagree with the assumption that this is another China stock that does not have it's shareholders best interests placed first.. This is a buying opp. for a long term investment..
hank
"This is the only thing I hate about these China companies. I mean a almost 30% discount??? They show time and time again they don't care about the common shareholder. The institutions are very happy as they have little to no risk being in at $3.20 a share. "
I have seen that sometimes these explode upward after these events. No warrants were issued which I like. Plus: "As a result of the financing, SOKO now expects to open more facilities in calendar 2010 than its previous guidance of 7 to 9 new facilities planned for the calendar year."
Will this almost 20% dilution benefit them with even higher growth?
I think it will help them a lot since now they have over $14 million in cash but I think they could of gotten a better deal if they would have waited a few months but maybe they plan to acquire something shortly.
This is the only thing I hate about these China companies. I mean a almost 30% discount??? They show time and time again they don't care about the common shareholder. The institutions are very happy as they have little to no risk being in at $3.20 a share.
SOKO Fitness & Spa Group Completes $10 Million Financing
PR Newswire - Apr 29 at 17:45
Company Symbols: NASDAQ-OTCBB:SOKF
Proceeds of Non-brokered Private Placement to Be Used to Accelerate Development and Acquisition of New Spa and Fitness Facilities
Terms of Financing Include Deferred Registration Rights and No Warrants..
-----------------------------------
The shares issued to the investors will be required to be registered with the SEC for resale, but only beginning on the 14 month anniversary of the closing and under certain other circumstances. Additional terms of the financing will be included in a Current Report on Form 8-K to be filed by the company
------------------------------------
HARBIN, China, April 29 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced the completion of a non-brokered private placement of 3,125,000 shares of common stock at a purchase price of $3.20 per share, yielding gross proceeds of $10 million to SOKO. The offering was made to select institutional and accredited investors, including two affiliates of IDG Capital Partners and existing investor Guerilla Capital and its affiliates. No warrants were issued to the investors in the offering, and no placement agent was utilized.
SOKO expects to use the proceeds of the offering to accelerate its growth strategy, including the opening of new spa and fitness facilities and the pursuit of strategic acquisitions, as well as for general corporate purposes. As a result of the financing, SOKO now expects to open more facilities in calendar 2010 than its previous guidance of 7 to 9 new facilities planned for the calendar year.
Tong Liu, Chief Executive Officer of SOKO said, "We pursued this financing in order to accelerate the execution of our already aggressive growth plan. We are developing our business rapidly, but are still in the initial stages of our growth. This cash infusion, our first since going public two years ago, significantly augments our balance sheet and offers us the near-term flexibility to capitalize on strategic opportunities to develop and acquire additional facilities. We are constantly working to identify new opening and acquisition targets that fit well within our model of penetrating underserved markets, enabling us to quickly capture market share and achieve positive returns on our investments in new or acquired facilities. We expect that this transaction will allow us to accelerate our pursuit of these opportunities, helping us drive additional growth and enhancing long-term shareholder value.
"In addition, we are delighted to have attracted a new, quality institutional investor such as IDG. We are also pleased that Guerilla Capital, which provided our original funding when we went public in April 2008, has elected to participate in this financing. We believe that the quality of the investors in this financing speaks to the progress we have made to date and our prospects for the future," Mr. Liu concluded.
IDG Capital Partners is a China-focused investment firm with over US$2.5 billion capital under management. As one of the earliest foreign investment funds to enter the Chinese market, IDG holds a strong track record of providing capital for Chinese growth companies.
Guerilla Capital Management and its affiliates are active China investors with over $180 million under management.
The shares issued to the investors will be required to be registered with the SEC for resale, but only beginning on the 14 month anniversary of the closing and under certain other circumstances. Additional terms of the financing will be included in a Current Report on Form 8-K to be filed by the company
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .
To be added to SOKO&;s email distribution for future news releases, please send your request to soko@tpg-ir.com .
Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company&;s plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company&;s management and are subject to significant risks and uncertainties, including those detailed in the Company&;s filings with the Securities and Exchange Commission. Actual results, including, without limitation, results regarding the Company&;s expansion strategies, service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company&;s control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
For further information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: soko@tpg-ir.com
SOKO Fitness & Spa Group, Inc.
Shawn Qu
Tel: +1-908-208-8681
Email: shawnqu@sokofitness.com
Judy Jiang
Tel: +86-451-8770-2280
Email: judyjiang@sokofitness.com
SOURCE SOKO Fitness & Spa Group, Inc.
SOKF.. $4.62.. Great Qtr.. EPS..
SOKO Fitness Announces Third Quarter Fiscal 2010 Financial Results
PR Newswire - Apr 19 at 07:00
Company Symbols: NASDAQ-OTCBB:SOKF
49% increase in Net Income on 58% Revenue Growth Year-over-year; Company to Host Conference Call on Tuesday, April 20 at 8:30 AM Eastern Time
HARBIN, China, April 19 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers and beauty salons and spas in Northeast China as well as suburban Beijing, today announced financial results for the third quarter and first nine months of fiscal 2010, ended February 28, 2010.
Third Quarter Financial Highlights
-- Revenue increased 58% year-over-year to $8.1 million, and improved 9%
on a sequential quarter basis.
-- Gross profit improved to $5.8 million, or 72% of revenue, compared with
$3.3 million, or 65% of revenue in the third quarter of fiscal 2009,
and $5.2 million, or 69% of revenue in the second quarter of fiscal
2010.
-- Operating income improved by 49% year-over-year to $2.8 million, and
compares with operating income of $3.1 million in the second quarter of
fiscal 2010.
-- Net income improved by 49% year-over-year to $2.8 million, or $0.15 per
diluted share, compared with $1.9 million, or $0.11 per diluted share
in the third quarter of fiscal 2009, and compares with $3.2 million, or
$0.17 per diluted share in the second quarter of fiscal 2010; and,
-- As of February 28, 2010, cash and cash equivalents were $4.8 million,
an increase of 153% over $1.9 million as of May 31, 2009.
Third Quarter Business Highlights
-- Secured 51% interest in two fitness centers in suburban Beijing,
marking the company&;s entry into the Beijing market; and,
-- Completed construction on and opened first yoga center in Harbin.
"We continue to grow our top and bottom line, improve our margins and increase our operating cash flow," said Tong Liu, Chief Executive Officer of SOKO. "We are focused on an aggressive growth strategy to build or acquire new facilities, and we are seeing the results in our revenue and profit growth. As we pursue this strategy, we expect our SG&A and other costs to increase as we ramp up new facilities. In particular, during the quarter we incurred various one-time expenses related to our Beijing fitness center acquisition, as well as other existing and new facilities. With our newly opened Harbin Yoga Wave facility, we are already attracting significant business and expect this center to make a meaningful contribution to our revenue growth in future periods to offset our investment in the facility.
"Of our three segments, our beauty and spa services continue to be the leader, accounting for 75% of our revenue in the third quarter. Our non-surgical medical beauty spa, which we opened in September 2009, is already generating revenue. We believe that this relatively high-margin business adds to our already robust beauty and spa offering, further diversifies our services and provides us with a promising market advantage, as we believe we are among the few providers of these procedures in the areas in which we operate. As such, we see significant opportunity to continue to grow the beauty and spa portion of our business as we continue to build the company and our brand. We also expect to see healthy growth from our fitness center business as those facilities move toward maturity, and expect that this segment will complement our spa and salon operations, which we believe will remain central to our growth for the foreseeable future," Mr. Liu concluded.
SOKO currently operates 17 facilities in key cities in Northeastern China and suburban Beijing including nine beauty salons and spas, one non-surgical medical beauty center, six fitness centers and yoga studios, including two fitness centers in suburban Beijing, and one beauty school. At the end of the third quarter ended February 28, 2010, SOKO had 16,158 fitness club members, and 20,536 beauty salon and spa clients. In addition, SOKO has completed construction and is engaging in pre-opening activities for the Daoli Fitness and Legend Spa Central Club, both of which are located in the Long Dian Building in Harbin, as well as the Lea Spa Xishan Club in Beijing.
Third Quarter Financial Summary
Total revenue for the third quarter of fiscal 2010 ended February 28, 2010 was $8.1 million, an increase of 58%, compared with revenue of $5.1 million in the third quarter of fiscal 2009. The increase in revenue was attributed to an increase in the number of SOKO-operated facilities from 11 in the third quarter 2009 period to 17 in the third quarter 2010 period, expanded service offerings with the addition of SOKO&;s first medical beauty salon in September 2009, increased sales from existing members and clients, the addition of new clients, sales of add-on services to members and clients, and continued efforts to cross sell and add new members and clients to new and existing facilities.
Among the company&;s three business segments, spa and beauty services and products accounted for 75% of revenue, fitness centers accounted for 21% of revenue and the beauty school accounted for 4% of revenue.
-- Total professional services were $4.7 million, up 79% year-over-year
and down 11% sequentially; the sequential quarter decrease was due to
promotional activities conducted in the second quarter of fiscal 2010,
which drove an increase in revenue during that period;
-- Total product sales were $1.4 million, down 6% year-over-year and up
127% sequentially. The year-over-year decrease was due to normal
fluctuation in this business segment, offset by the Company&;s increase
in its professional services business as products sold in conjunction
with services are recorded as revenue under SOKO&;s professional
services business segment;
-- Membership fees grew to $1.7 million, up 215% year-over-year and up 55%
sequentially; and,
-- Revenue from beauty school tuition was $350,000, compared with $513,000
in the third quarter of fiscal 2009 and $392,000 in the second quarter
of fiscal 2010. The decrease was due to SOKO&;s strategic cut back in
some of its short-term administration courses and transition to
increase its longer term training programs to support its core beauty
and spa business operations.
Gross profit for the third quarter of fiscal 2010 was $5.8 million, or 72% of revenue, compared with $3.3 million, or 65% of revenue for the comparable quarter in fiscal 2009, and compared with $5.2 million, or 69% of revenue in the second quarter of fiscal 2010. The increase in margins for the period was primarily the result of the addition of SOKO&;s non-surgical medical beauty service offering, which carries relatively high margins.
Selling, general and administrative expenses were $3.0 million, compared with $1.4 million in the third quarter of fiscal 2009 and $2.0 million in the second quarter of fiscal 2010. The increase in SG&A expense was related to an increase in one-time expenses related to the Beijing fitness center acquisition and other activities related to both new and existing facilities, as well as increased costs directly related to the growth in revenue.
Net Income increased 49% to $2.8 million, or $0.15 per diluted share, based on 18.2 million weighted average shares outstanding, compared with $1.9 million, or $0.11 per share, based on 17.0 million weighted average shares outstanding, for the year-ago period. The increase in net income was primarily related to the increase in revenue. This also compares with a net income of $3.2 million, or $0.17 per diluted share based on 18.2 million weighted average shares outstanding in the second quarter of fiscal 2010.
As of February 28, 2010, SOKO had cash and cash equivalents of $4.8 million, a 33% increase compared with $3.6 million in the prior quarter, and a 153% increase over $1.9 million as of May 31, 2009.
Company and Market Outlook
"We are still in our initial stages of growth," said Mr. Liu. "Currently only nine of our 16 facilities have been operated under the SOKO brand for more than two years. With four new facilities already open during calendar 2010, and three facilities engaged in pre-opening activities, we are well on our way to meet our previously announced expansion goals of opening seven to nine new facilities this calendar year, all of which we believe can be funded by current operating cash flow and cash flow from organic growth.
"We will continue to seek new opportunities to construct or acquire facilities in areas where we can implement our business strategy of penetrating underserved markets to quickly capture market share and achieve a positive returns on our investment as we continue to build our brand and our business," Mr. Liu concluded.
Conference Call
SOKO will host a conference call for interested investors and analysts to discuss its financial results for the period on Tuesday, April 20, 2010, at 8:30 a.m. Eastern time. To participate in the conference call, please dial 1-888-549-7704 from the U.S. and Canada, or 1-480-629-9857 for international callers.
An audio replay will also be available approximately one hour after the conclusion of the call and will be made available through Tuesday, May 4, 2010. The audio replay can be accessed by dialing 1-800-406-7325 from the U.S. or Canada, or 1-303-590-3030 internationally, and entering access ID Number 4283144.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .
To be added to SOKO&;s email distribution for future news releases, please send your request to soko@tpg-ir.com.
Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company&;s plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company&;s management and are subject to significant risks and uncertainties, including those detailed in the Company&;s filings with the Securities and Exchange Commission. Actual results, including, without limitation, results regarding the Company&;s expansion strategies, service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company&;s control). The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Phone: +1-212-481-2050
Email: soko@tpg-ir.com
SOKO Fitness & Spa Group, Inc.
Shawn Qu
Phone: +1-908-208-8681
Email: shawnqu@sokofitness.com
SOKO Fitness & Spa Group, Inc.
Judy Jiang
Phone: +86-451-8770-2280
Email: judyjiang@sokofitness.com
SOKO FITNESS & SPA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN US DOLLARS)
(UNAUDITED)
FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
FEBRUARY 28, FEBRUARY 28,
2010 2009 2010 2009
(RESTATED) (RESTATED)
Net Sales $21,931,285 $13,996,019 $8,087,602 $5,110,861
Cost of Sales (6,745,707) (4,822,521) (2,293,963) (1,807,084)
Gross Profit 15,185,579 9,173,498 5,793,639 3,303,777
Selling, General
and Administrative
Expenses: 7,007,425 4,039,238 3,107,666 1,438,622
Operating Income 8,178,153 5,134,260 2,685,973 1,865,155
Other Income and
Expenses
Interest expense (34,992) (92,896) (3,428) (10,545)
Other income 67,509 2,863 34,211 257
Other expenses 5,951 (213,013) 9,885 (47,292)
Total Other Income
and (Expense) 38,467 (303,046) 40,667 (57,580)
Income Before
Income Taxes 8,216,620 4,831,214 2,726,641 1,807,575
Provision for
Income Taxes 62,241 79,974 14,337 28,537
Net Income 8,154,378 4,751,240 2,712,303 1,779,038
Less: net income
(loss) attri-
butable to the
noncontrolling
interest (155,916) (223,980) 6,234 (76,436)
Net Income Attri-
butable to SOKO
Fitness & Spa
Group, Inc. $8,310,294 $4,975,220 $2,706,068 $1,855,474
Other Comprehensive
Income - Foreign
currency trans-
lation adjustment
Attributable to
SOKO Fitness &
Spa Group, Inc. 7,767 218,039 3,073 (42,376)
Attributable to
non-controlling
interest (91) 5,678 (28) (407)
Comprehensive
Income (Loss)
Attributable to
SOKO Fitness &
Spa Group, Inc. $8,318,062 $5,193,259 $2,709,141 $1,813,098
Attributable to
non-controlling
interest $(156,007) $(218,302) $6,206 $(76,843)
Basic and Diluted
Income per common
share
Basic $0.49 $0.29 $0.16 $0.11
Diluted $0.45 $0.29 $0.15 $0.11
Weighted average
common share
outstanding
Basic 17,000,000 17,000,000 17,000,000 17,000,000
Diluted 18,467,236 17,000,000 18,168,443 17,000,000
SOKO FITNESS & SPA GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN US DOLLARS)
FEBRUARY 28, MAY 31,
2010 2009
(UNAUDITED)
ASSETS
Current Assets:
Cash & cash equivalents $4,833,492 $1,907,640
Restricted cash -- 7,233
Accounts receivable, net 1,435,842 110,541
Inventories 1,504,818 1,391,302
Advances to suppliers 3,311,294 993,084
Employee advance 237,799 54,783
Prepaid expense 76,607 146,959
Total Current Assets 11,399,852 4,611,542
Property, plant and equipment, net
of accumulated depreciation 24,572,626 19,674,394
Other Assets
Security deposit 100,497 47,853
Deferred rent 925,979 589,188
Deposit to suppliers 1,620,127 1,464,530
Investment advance 22,414 399,750
Goodwill 4,179,522 2,525,778
Intangible assets, net 1,853,019 --
Total Other Assets 8,701,557 5,027,099
Total Assets 44,674,035 29,313,035
LIABILITIES AND STOCKHOLDERS&; EQUITY
Current Liabilities:
Short-term loans 2,197,477 2,196,795
Accounts payable, accrued
expenses and other payable 1,590,460 471,457
Unearned revenue 8,069,449 1,909,755
Taxes payable 150,018 360,229
Contingent liability 200,000 200,000
Total Current
Liabilities 12,207,403 5,138,236
Stockholders&; Equity
Preferred Stock, $.001 par value;
10,000,000 shares authorized;
- 0 - shares issued and
outstanding at February 28, 2010
and May 31, 2009 -- --
Common stock, $0.001 Par value;
500,000,000 shares authorized;
17,000,000 shares issued and
outstanding at February 28, 2010
and May 31, 2009 17,000 17,000
Additional paid-in-capital 2,369,376 2,346,397
Additional paid-in-capital - Warrants 639,253 639,253
Accumulated other comprehensive income 1,918,520 1,910,752
Retained earnings 27,525,408 19,215,114
Total Stockholders&; Equity 32,469,557 24,128,516
Noncontrolling interest (2,925) 46,283
Total Equity 32,466,633 24,174,799
Total Liabilities and
Stockholders&; Equity $44,674,035 $29,313,035
SOURCE SOKO Fitness & Spa Group, Inc.
Uplisting coming? Check this out..
Registration Effectiveness Orders Issued By The SEC
The following table includes registration statements and post-effective amendments that were declared effective by the Securities and Exchange Commission on the most recently completed business day.
The Securities Act of 1933 requires companies offering securities to file a registration statement with the SEC that discloses material facts for investors. The SEC staff reviews registration statements and declares them "effective" if companies satisfy the disclosure rules.
REGISTRATIONS EFFECTIVE AS OF April 13, 2010
Soko Fitness & Spa Group Inc. (SOKF)
File Number: 333-151563
Date of Original Registration: 6/10/08
Form Type: S-1
Securities Registered: 4,200,000 Shares of Common Stock
Selling Holder: Yes.
If you have done your DD then use it as a time to add to your position. Take a look at the growth they will show the next couple of years. If they drop this to $4 its a screaming buy. PE should be at least 10.... Run rate of .68 now puts price at $6.80. BUT THEY CONTINUE TO GROW!!!!! So they should continue to make more every quarter!
Any idea on earnings? I am worried if this stock will disappoint like so many other chinese OTCs have recently.
SOKF..$4.25
We are it appears clean and GREEN and the overhang has been chewed thru.. We should be good thru the $5's and into the $6's.. hank
I did my part just because SIAF was green for a small sell.
SOKF fill
03/22/2010 02:56:57 PM $4.11 400.000 $1,644.00
NET TOTAL 400.000 $1,644.00
SOKF..$4.07
I had est. that 250K to 290K would be sold at this level and believe that it has now is almost/been chewed thru.. (At first I thought the price would be $4.20)..
NITE is the key as they remain the the direction in this stock.. At present NITE is $4.06 X $4.07 looking for the seller... Once the seller comes in NITE will fall back and let the seller do his thing.. The seller IMO is/should be done at this level and I don't think he will be back for several months at a higher price..
Any selling from here to $6.00 IMO will come from those that loaded up during the past move.. There was reference made to SOKF trading @$0.10.. I don't think that was a correct price as I bought stock during the first week that it actually traded .. My initial bids were always above $1.00 and actually had to buy at the offer to get my Original Position..
SOKF is twice the Company it was when I made my first purchases and deserves much higher prices as it continues to get the word out..hank
I hope your buys turn out well. I have wanted to buy more. But my avg. is so low, it's hard to justify it. I'll continue to evaluate my reasoning though.
Regards,
03
SOKF..$4.05
Does it really matter which post he responded to.. Take your crap some where else.. BTW I added today..
03/22/10 12:10 PM EDT Buy 388 SOKF Executed @ $4.05
03/22/10 12:10 PM EDT Buy 2000 SOKF Executed @ $4.05
03/22/10 12:01 PM EDT Buy 2500 SOKF Executed @ $4.1
I agree that we need an uplist to get to that $12 target this year. I like the fact that they will be able to double the # of their fitness clubs this year with only cash flow while also upgrading their spa centers. It's just a matter of a year or two until their remaining existing centers in both categories reach "maturity", meaning doubling membership numbers. So that will compound the growth. The retention of over 80% is indeed very high, so they must be doing something right so far.
Any info how soon they uplist?
SOKF chart
Institutional holdings
http://www.dailyfinance.com/company/soko-fitness-and-spa-group-inc/sokf/nab/institutional-ownership
Rames list China Valuation Screen - OTC/BB
http://fixyou.co.uk/valuation_otc.php
GEO bargain
http://geoinvesting.com/companies/sokf_soko_fitness_and_spa_group/bargain
Filings
http://www.sec.gov/cgi-bin/browse-edgar?CIK=0001355835&action=getcompany
BigCharts for money flow & OBV values
SOKF targets at Seeking Alpha
The following valuation was posted at this article:http://seekingalpha.com/article/194537-three-china-small-caps-set-to-double-in-six-months?source=yahoo
Current Price: $4.10
52-Week Range: $0.10-$4.45
EPS: (2010) 0.55* (2011) 0.98*
P/E: (2010) 7.5x (2011) 4.2x
PEG: 0.20*
Price Objective: $12.74.
* Based on C.O.P. fully-diluted estimates.
I do believe this stock could double in the next 6 months
The company's growth rates are great:
And If you add a gross margin of 68% and a net margin of 43% this company looks even better.
And let us not forget what I consider a major plus:inside ownership of 41%.
I love their business model and the way they cross sell their services and products, and I do believe we will see 8 this year, however to get to 12, IMHO we would need an uplist.
Volume is to low, and even with growth rates above 60% investors are only attracted to the stock during the earnings season, and tend to forget the stock soon after.
Take care.
It sure would have been nice if I could have gotten in on the 10-1 f/s they had. But alas, it was not meant to be.
Over,
03
I can see you how you could read it that way. My apologies for not wording that better. I hope 10bags new what I meant.
Regards,
03
No actually you replied to a post in the $4 range today!
I was referring to this person's posts when it was in the $2 area. Thank you for your post.
Regards,
03
This is at 95% of its 52 Wk HIGH - up from .10 cents as a LOW
I guess it is not surprising you are ENTHUSIASTIC given a post at 1PM today - Geeez
A PICK AT .10 CENTS WOULD HAVE BEEN VERY NICE BUT NOT AT $4
Bid (USD) Ask (USD) Last Traded Open Prev Close
4.12 5.10 3:59:32 PM EST 3.75 3.75
Day's Range 52-Wk Range Avg Volume EPS P/E
3.75 - 4.19 0.10 - 4.45 21,200 0.52 -
Market Cap Outstanding Float Dividend / Yield Ex-Div Date
$ 70.55M 17,000,000 6,148,000 $ - / -% -
Well, she's looking really good here. Nice pick!
Over,
03
SKF.. $4.00
As there is value there shares are going into stronger hands so who cares.. I will continue to add as funds become avil.. Been here as long as any and I actually started the board.. hank
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40562326
I wonder how many shares guerrilla cap intends to sell.
Over,
03
Looking good today. Sure would like to see them uplist. Been with this one a long time.
Over,
SOKF..$3.85
Added again today.. It's seems to be getting harder to buy.. hank
03/08/10 11:32 AM EST Buy 2200 SOKF Executed @ $3.8 Details | Edit
SOKO.. $3.75..
Looks like SOKF is getting stock frendly.. I'm buying more today..
03/04/10 3:14 PM EST Buy 1200 SOKF Executed @ $3.75 Details | Edit
03/04/10 3:14 PM EST Buy 1000 SOKF Executed @ $3.75 Details | Edit
hank
Fitness & Spa Group to Present at Upcoming Investor Conferences
PR Newswire - Mar 04 at 07:00 NONE
Company Symbols: NASDAQ-OTCBB:SOKF
HARBIN, China, March 4 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced that company management will present at the following upcoming investor conferences:
-- Rodman & Renshaw Annual China Investment Conference at The Regent Hotel
in Beijing, China on March 8, 2010 at 3:15pm Beijing time (2:15am
Eastern time);
-- Roth 22nd Annual OC Growth Stock Conference at The Ritz-Carlton in
Laguna Niguel, California on March 17, 2010 at 9:00am Pacific time.
An audio and slide webcast of each presentation will be available under the "Events and Presentations" page on the "Investor" section of SOKO's website at http://www.sokofitness.com/Investors/company2-5.htm . Following the live presentations, archives will be available for 90 days.
To request a one-on-one meeting with representatives of SOKO or to be added to SOKO's email list, please contact Lee Roth at soko@tpg-ir.com or call 212-481-2050.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .
To be added to SOKO's email distribution for future news releases, please send your request to soko@tpg-ir.com.
Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, results regarding the Company's expansion strategies, service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
For more information, please contact:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: +1-212-481-2050
Email: soko@tpg-ir.com
Shawn Qu
SOKO Fitness & Spa Group, Inc.
Tel: +1-908-208-8681
Email: shawnqu@sokofitness.com
Judy Jiang
SOKO Fitness & Spa Group, Inc.
Tel: +86-451-8770-2280
Email: judyjiang@sokofitness.com
SOURCE SOKO Fitness & Spa Group, Inc.
SOKO NEW PRESENTATION.
NICE...
http://www.sec.gov/Archives/edgar/data/1355835/000121390010000697/f8k022410ex99i_soko.htm
Yep and they can do those 7-10 without raising cash.
Also, only 6 out of their current 15 facilities are more than 3 years old. Facilities 'mature' after 3 years according to management... That means we should see strong organic growth from most of the current facilities in 2010 as well.
I like their membership business model as it gets them cash upfront which they can then use for faster expansion.
-Fernando
SOKF..
It looks like the seller has been taken care of.. The next hurdle will be @$ 4.20 where the first amount of stock was sold in size.. GLTA.. hank
Found out the answer. 7 to 10.
Please ignore my previous post.
Hi guys,
can anyone help me with the following info. please?
How many clubs do they plan to open during 2010?
TIA
i hold 10k shares of sokf, the low volume i do not like so much. any hints to where this 1 is headed
SOKF.. $3.90 Insider Sale...
Holder GUERRILLA CAP MGMT LLC Sells 150,530 Of SOKO FITNESS & SPA GRP >SOKF
Dow Jones & Company, Inc. - Jan 22 at 14:45 NONE
Company Symbols: NASDAQ-OTCBB:SOKF
SOURCE: Form 4
ISSUER: SOKO FITNESS & SPA GROUP INC
SYMBOL: SOKF
FILER: GUERRILLA CAPITAL MANAGEMENT LLC
TITLE: Beneficial Owner
DATE TRANSACTION SHARES PRICE VALUE
1/8/10-1/15/10 Sale 150,530 $3.81 $573,896
OWNERSHIP: 1,687,070 (Indirect)
The Form 4 is filed with the Securities and Exchange Commission by insiders
to report transactions in their companies' shares. Open market purchases
and sales must be reported within two business days of the transaction.
Insider Data Source: The Washington Service
(info@washingtonservice.com or 301-913-5100)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=NQ7%2FVnHlMn%2FowwmAvL6JRQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-22-10 1445ET
SOKF.. $3.90
Holder GUERRILLA CAP MGMT LLC Sells 150,530 Of SOKO FITNESS & SPA GRP >SOKF
Dow Jones & Company, Inc. - Jan 22 at 14:45 NONE
Company Symbols: NASDAQ-OTCBB:SOKF
SOURCE: Form 4
ISSUER: SOKO FITNESS & SPA GROUP INC
SYMBOL: SOKF
FILER: GUERRILLA CAPITAL MANAGEMENT LLC
TITLE: Beneficial Owner
[color=blue]DATE TRANSACTION SHARES PRICE VALUE
1/8/10-1/15/10 Sale 150,530 $3.81 $573,896
OWNERSHIP: 1,687,070 (Indirect)[color]
The Form 4 is filed with the Securities and Exchange Commission by insiders
to report transactions in their companies' shares. Open market purchases
and sales must be reported within two business days of the transaction.
Insider Data Source: The Washington Service
(info@washingtonservice.com or 301-913-5100)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=NQ7%2FVnHlMn%2FowwmAvL6JRQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-22-10 1445ET
From the CC....No need for any dilution to raise cash for 2010 expansion....7-9 additional facilities will get this gem into the $8 range no problem.....IR needs to put out news with all the details....4 new locations under construction already.....woot!
SOKF
In my opinion SOKF could be making a short-term top today.
The RSI is approaching 89, so it is waaaaaaaaaaaaaaaaaaaaay overbrought.
I see a close today below $4.30 as a very bearish move in the short run. I think SOKF is probably due for a significant short-term pullack here in the shorter run, although longer run the fundies do look very good. I have no position for what it is worth. All is just my opinion, and I could always be wrong though.
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