Trunkbow International Holdings, Ltd. (TBOW)

[BiotechValues]

TBOW- WEEEEEEEEEEEEEEEEEEEEEEEEE!!!!!!!!!!!

Wowser this one's gonna make us a lotta $

[hebercreeper]

[hebercreeper]

I think it might finally be $TBOW time.

Very nice volume on 20x50 cross as China names are heating up.

[hebercreeper]

Still here, good to see recent action in absence of news.

Someone locked in at .93 for now but no major dumper intent on destroying this thing as seen in the past.

Gap will fill soon enough & 20 x 50 cross not too far away.

[BiotechValues]

You still in here hebercreeper?

I am- I like the quiet accumulation that's been going on and think she'll spike over $1 when q3 is reported. If management bought any shares for their own accounts, it would get there much faster too...

[BiotechValues]

Thanks to the wonders of dollar cost averaging,

I'm green in TBOW now.

Time to Release the Kraken!

[hebercreeper]

Just over one month consolidating in this .80 range. Do we see another dip to shake out the initial bounce buyers/bottom feeders?

Suggestion to management, include some dollar amounts in future PR's.

[hebercreeper]

No news since Q2 release. Gotta be due for some PR soon, especially considering share price.

[BiotechValues]

Hard to say what others are doing and why.

I'm good with my position here and expect I'll be very happy when they report Q3... unless they're BS-ing about the strength they expect in the second half, which is always possible.

[hebercreeper]

TBOW: Massive dumper still locked in. Maybe the R/M pre IPO was part of a larger plan...

[BiotechValues]

Added 15k shares today.

I have all I want here now.

[BiotechValues]

Yes, Verifone has many partners, but they also own 8% of TBOW..and they share a director (Albert Liu)

http://ir.verifone.com/phoenix.zhtml?c=187628&p=irol-govBio&ID=183644

http://www.trunkbow.com/?en-c-m-61.html (click exec. director tab and scroll down)


Looking at Q3 2011, they only made .02, so if what they maintained in the conference call that most of their earnings would come in the second half of this year is true, then the quarter they'll be announcing in 2 months will be a blowout.

That's why I've been adding and am still on the bid now.

[hebercreeper]

$PAY pummeled after hours but said this about Asia during conference call:

Moving onto Asia. We are extremely happy with our results in the third quarter. Revenues were up 72% from a year ago and 13% organically. Growth was up 16% on a constant currency basis. We saw strong revenue growth in China. The ISO market is developing in China with over 100 licensed ISOs, and we continued to generate new business with new customers. In addition, sales to banks were strong, and we enjoyed good wins at ICBC, CCB and UMS. In greater Asia, we enjoyed great wins with the Bank of Madiri in Indonesia and with the largest Malaysian bank, Maybank. We've begun deploying an Electronic Receipt Management solution to the Bank of Ayudhya, one of the top 5 Thai banks.

Really not much as far as insights into the impact on TBOW. Verifone has many Chinese partners.

http://seekingalpha.com/article/848821-verifone-systems-inc-management-discusses-q3-2012-results-earnings-call-transcript?page=1

[cino]

let's HOPE so. i'm not adding right now anyway. i have a few other funky stox i'm concerned about!

gla

[BiotechValues]

I don't know yet hebercreeper- but I found this on their 10-K from March when I was trying to find the answer:

"The PRC government has mandated that these mobile payment services and MVAS functions must be available to all provinces over the next five years. With such services currently available in 19 provinces, the 11 remaining provinces will be seeking them from the market with Trunkbow being a major incumbent; fully vetted at a corporate level and with patented technology."

wow- that should be in a press release.

anyway, I'll keep digging and try to find out what they're doing on the R&D facility. I also noticed VeriFone now owns 8% of TBOW- but I remember reading they were buying 5% at the time of the IPO last year.

[hebercreeper]

What's the status of the big R&D facility (land) that TBOW management chose to spend IPO proceeds on?

[BiotechValues]

Chinadaily 9/3/2012: Pilot projects for mobile payments

The People's Bank of China said it would launch pilot projects for mobile payment services in China's rural areas, according to a report in the China Securities Journal.

In order to use the services, rural residents have to apply for a credit card, along with a SIM card that will be linked to the account. The mobile services will be able to process taxes, remittances and withdrawing small amounts of cash.

Agricultural Bank of China, Postal Savings Bank of China, China UnionPay and three Chinese telecom operators are among the first batch of companies participating in the pilot projects, the paper added.

China UnionPay is conducting training programs for some agricultural product dealers, to promote mobile payment services in rural areas, sources told the paper.

Authorities are likely to establish an upper limit for the transactions, the sources said. For example, the amount for a single cash transfer will have to be less than 1,000 yuan, and each personal account will not be able to transfer more than 10,000 yuan in total within a year.

About half of China's mobile subscribers live in rural areas, which shows a big potential for developing mobile payment services there, analysts said. Banks are reluctant to open outlets in rural markets due to high costs and low returns. Therefore, conducting financial transactions via mobile phones may help meet rural residents' demands, the analysts added.

http://usa.chinadaily.com.cn/business/2012-09/03/content_15729923.htm

[BiotechValues]

China's Mobile Payment Growth






Source:
http://english.iresearch.com.cn/views/3987.html

[BiotechValues]

In China, Mobile Payments Could Replace Cash, Cards

Mobile payments may replace cash and bank cards to become the mainstream method of payment by 2020, a survey suggests.

The results released on June 12 by Pew Internet, a nonprofit research organization based in the US, said that about 65 percent of respondents believed many customers will use smartphone terminals to pay by 2020.

But 33 percent of those polled disagreed, saying that cash and bank cards will remain the main methods of payment.

"Mobile payment may become the main method in Chinese first-tier cities in three to five years," said Zhang Xudong, an expert at iResearch, an organization focusing on research of China's Internet sector.

Because of the popularity of intelligent terminals and the maturing of mobile communication, these technologies are applied more widely in the field of mobile payment and the payment process is becoming more convenient, experts said.

"The security problem has already been resolved, and the key factor that hinders the development of mobile payment nowadays is convenience, including the configuration of related equipment and developing mobile payment habits among customers," Zhang said.

The implementation of mobile payment benefits many parties, for example mobile operators, payment servers as banks, equipment providers, merchants and terminal users.

"It will take time to build a cross-industry system and balance the benefits of all parties, " he said.

http://www.chinadaily.com.cn/china/2012-06/12/content_15496724.htm

[BiotechValues]

Trunkbow: Capitalizing On The China Mobile Revolution

(Seeking Alpha, January, 2012)

About The Company

Trunkbow International Holdings (TBOW) is a leading developer of Mobile Value Added Solution (“MVAS”) and Mobile Payment Solutions (“MPS”), used in Chinese smartphones. These platforms are deployed by the three major Chinese carriers to offer their subscribers enhanced smartphone features that increase average revenue per user and reduce churn. Trunkbow provides both hardware and software solutions that are integrated into clients’ existing IT infrastructure. It also offers technical support and system maintenance for clients.

The Opportunity

Trunkbow stands in a highly coveted position because it is an approved vendor to each of the “Big Three” Chinese mobile vendors: China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU). Together, these three firms operate a colossal oligopoly in the world’s largest telecommunications market. Between them, they have over 800 million customers. Being government agencies, the Big Three vendors have a strong preference for continuity and compatibility in their various systems, which fortifies Trunkbow’s competitive standing. Trunkbow’s platform solutions are highly integrated with the Big Threes’ existing IT and networking infrastructure, making it very difficult for them to switch. Trunkbow has a first mover advantage and is the undisputed leader in the Chinese Mobile Payment industry. It was the first firm to commercialize Mobile Payment Solutions for in-store POS and Mobile E-commerce in China.

Trunkbow is also uniquely positioned to benefit from growth in one of the largest and most rapidly growing industries in the world: mobile applications for Chinese smartphones. Booming growth in this sector is supported by increased smartphone usage among China’s aspirational middle class, the largest and fastest growing middle class demographic in the world. Rapidly expanding per capita GDP and an increasing trend towards consumerism is further propelling this growth. China’s telecom sector is already the largest in the world, as measured by population.

Within the growing telecom market, China has undergone a mobile revolution in recent years, driven by a shift in e-commence under which end users are seeking instant gratification through a broader range of purchasing options such as mobile purchasing. The e-commence opportunity in China is massive. There are an estimated 485 million internet users. This is more than double the number of users in the US. And penetration is only 36%, compared to 78% in the US, creating tremendous opportunity for further growth. Trunkbow mobile applications are specifically positioned to benefit from this growth.

Within the mobile e-commerce market, these growth trends are highly encouraging for Trunkbow:

Online transactions doubled year-over- year to RMB170 billion in the first quarter of 2011
There were around 300 million mobile Internet users in China at the end of 2010; this number is projected to grow to 750 million by 2014.
The value of Trunkbow’s platforms to its Big Three customers increases with the average revenue per user of its subscribers and decreases with subscriber churn. In order to support its competitiveness, Trunkbow invests continuously in R&D to develop innovative technology solutions. It works extensively with customers and technology partners to develop cutting edge technology solutions that are relevant to consumer trends and market demand. 100 R&D professionals at the firm have filed 164 filed patents applications over the years, of which 50 have been approved by the National Intellectual Property Administration in China. The firm has also have begun the filing for international and U.S. patents in order to protect its intellectual property globally. The fact that Trunkbow’s platforms and services have been relied upon by the Big Three continuously over the past ten years is a testament to its standing as a well managed, trusted provider of technology solutions.

The R&D division is led by three highly experienced industry veterans, Dr. Hou Wan Chun, Dr. An Chun Ming and Mr. Wang Xin. Dr. An Chun Ming pioneered Next Generation Network (“NGN”). Prior to joining Trunkbow he led multiple development efforts at Bell Labs Fellow during his 30 year tenure. Dr. Hou Wan Chun previously worked as an engineer for leading U.S. telecom companies, including Lucent, where he was involved in developing new intelligent network applications.

Tremendous Value Opportunity

Trunkbow is currently trading at 3.4x trailing twelve month earnings, a phenomenal discount to intrinsic value by any measure. When one factors in earnings growth, this multiple becomes even more attractive. The company has recorded tremendous compounded annual growth of 47% over the past 4 years (based on annualized YTD Q3 2011 earnings since Q4 results have not yet been released). As shown below, if earnings can be sustained –as I have described previously, they can be – then this discount gets even deeper over time.

Taking a look at net margins, the numbers are eye-popping. These margins are a function of the value Trunkbow adds to its telecom vendor customer base as well as their willingness to pay for Trunkbow’s lucrative proprietary technology. Trunkbow’s strong IP portfolio and proprietary technology are central to customer captivity and the high margins.


In summary, value opportunities like these are almost exclusively found in the realm of small market cap stocks like Trunkbow. Given that there is no dearth of small cap names, it does take some digging to identify opportunities like this. When they are found, these opportunities represent a tremendous opportunity for capital appreciation. As a final note, management is heavily vested - management ownership at 9/30/2011 was 46.9%, a very reassuring sign.

Disclosure: I am long TBOW.

http://seekingalpha.com/article/318808-trunkbow-capitalizing-on-the-china-mobile-revolution

[BiotechValues]

TBOW (Trunkbow International Holdings) basic Due Diligence

Web site: http://www.trunkbow.com/

Share structure
36.8M shares issues and outstanding
Float: 17M
Shares Short: "No Short Interest" per Nasdaq.com
3,700 shares short per ShortSqueeze.com

8% of float held by institutions

2011 audited eps = .46
2012 guidance of eps = .62 (forward pe under 2 as of today’s close)
______________________________________________________________

TBOW provides Mobile Payment Solutions (“MPS”) to telecom operators in China

The mobile "PayPal of China", (thanks GlobeTrade for that apt description)

Founded by former Silicon Valley engineers with extensive experience in the telecom industry.

First to market with MPS application platforms, and is the third largest revenue contributor for China Mobile.
100 R&D professionals led by a seasoned senior management team with extensive experience in the telecom industry.

19 "significant revenue generating patents" granted (they hold over 200 patents), and multiple patents pending

There are 864 million mobile subscribers in China, most of whom do not have a credit or debit card. For many subscribers, the mobile phone will be their first experience with a payment method other than cash.
________________________________________________________________

TBOW's customers are the "Big 3" telecoms: China Mobile, China Unicom, and China Telecom.

Partnerships with Cisco, Hewlett Packard, Telecordia, Oracle.

Verifone invested $5M with TBOW last year.
http://www.verifone.com/2010/verifone-invests-in-chinese-mobile-payments-company.aspx

TBOW was an IPO in Feb, 2011 (that was made immediately following a reverse merger). I'm still trying to find out why they did an IPO after having done a reverse merger, but it might have been to gain market credibility as an IPO. At any rate, they were vetted more thoroughly as an IPO. Had they started out down the IPO path and then decided to simply reverse merge with a shell company, I would see that as a huge red flag. However, TBOW chose to do the opposite and was successfully vetted as an IPO after some of the more significant frauds in the China space had already become public. I see this as a positive.

_________________________________________________________________

Auditor: Marcum Bernstein & Pinchuk (MB&P)
This auditor is tenacious and demanding from their clients. They are third in China in terms of companies they represent, and they are selective in who they take on. I believe this is an auditor who really is on “our side”.

CNBC Video: Drew Bernstein (TBOW’s auditor) regarding fraud in China
http://video.cnbc.com/gallery/?video=1708048404

“Sometimes we have to go to extremes to get Chinese company officials to understand the ramifications of shoddy auditing and accounting. Instead of bowing to the intransigent company chairmen or boards, we explain that if they don't cooperate and own up to problems, we will be forced to tell the local authorities of alleged fraud, therefore making it a Chinese problem." Drew Bernstein

This is the auditor for TBOW.
No wonder there is zero short position.


More from TBOW’s Auditor:

“Come What May, MBP Won’t Be Giving Up Its Seat at the Table”
(July, 2012)

http://chinabusinessknowledge.com/industry/professional-services-member-profile-marcum-bernstein-pinchuk-llc

and

TBOW’s auditor: “There Are no Shortcuts to Reliable Numbers” (March 2012)
http://www.chinadaily.com.cn/usa/weekly/2012-03/02/content_14737130.htm

TBOW's market is large, and growing fast:

Mobile Payment Volume up 74% to 1 Trln Yuan in '11
http://english.iresearch.com.cn/news/4155.html


I believe TBOW is "the real deal" China growth story: An IPO with a damn good auditor who is on "our side" when it comes to fraud, and a growth rate that's real. I also believe the share price will reflect these things in time, and that the stock will begin trading at a more realistic, non-fraud valuation.


CSP

[Stream205]

TBOW via TheLionPit......

http://www.thelion.com/bin/forum.cgi?tf=wall_street_pit&msg=2308987&cmd=r&t=

[BiotechValues]

Trunkbow International and China UnionPay Form Mobile Payment Partnership

Trunkbow-Powered Payment Applet to Enable Simple, Secure M-commerce Transactions through China’s Dominant Financial Clearing House

BEIJING –January 10, 2012 – Trunkbow International Holdings Limited (NASDAQ: TBOW) ("Trunkbow" or the "Company"), a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in China, today announced that it has entered into a partnership agreement with China UnionPay (“UnionPay”), China’s leading bankcard association, for the development and marketing of the Trunkbow UnionPay mobile payment applet. Under the agreement, Trunkbow is developing a UnionPay-certified plug-in applet that will enable m-commerce transactions through UnionPay’s clearing system. The companies expect to launch this applet to merchants in January 2012.



In addition to development and aftermarket support of the applet, the companies will work together to develop and expand the Trunkbow UnionPay merchant network, and market the m-commerce solution to China’s nearly 1 billion mobile phone users.



Trunkbow will receive a percentage of the gross value of each transaction processed through the applet, as negotiated with individual merchants. The Company expects its per-transaction fees to range from 0.4% to 2.4%, depending on the merchant and type of transaction.



“This partnership will provide us with meaningful financial contributions through revenue sharing with both China UnionPay and individual merchants. It represents an important strategic milestone for our MPS business, as it marks the implementation of our MPS technology into a nationwide inter-bank transaction clearing system that processed RMB 11.2 trillion in transactions in 2010,” said Mr. Qiang Li, CEO of Trunkbow. “Smart phone adoption and mobile application use are growing rapidly in China, with tech-savvy consumers migrating to m-commerce in growing numbers. The Trunkbow UnionPay applet can be integrated into an individual mobile application or app store, and provides a new, extremely convenient payment option for consumers. With a defensible first mover advantage and strong partnerships with China’s three wireless carriers and leading clearing house, we are well positioned to capture share in this emerging market.”



Mr. Li added, “The nationwide roll-out of the Trunkbow UnionPay mobile payment applet greatly enhances our merchant acquisition capabilities. Our POS-based MPS platform is active in 24 provinces through all three wireless carriers, and the Bestpay mobile application is being rolled out to China Telecom’s 28 million 3G smart phone users. The addition of the UnionPay mobile applet and rapidly growing number of m-commerce end-users make the benefits of MPS technology, and our solution in particular, increasingly attractive to merchants as an alternative to card-based transactions. Having taken this important step to expand our MPS footprint, we plan to aggressively ramp our merchant acquisition efforts through the establishment of partnerships with online and offline retailers, service providers and other merchants. We believe that this strategy will help Trunkbow build a solid recurring revenue base, resulting in greater stability and visibility in our MPS business, while giving us access to a virtually limitless market.”


The Trunkbow UnionPay mobile payment applet can be incorporated into any existing mobile application to facilitate simple, secure online payments from a user’s mobile phone. Representative transactions include the payment of utility and other bills, purchase of lottery, movie and event tickets, online gaming credits, e-books as well as physical goods from online and brick-and-mortar merchants utilizing the applet.

[BiotechValues]

Govt near nod on UnionPay mobile payment standard

8/30/2012

The Chinese government has almost reached an agreement to adopt a mobile payment standard initiated by China UnionPay, according to the chairman of China UnionPay.
Xu Luode, the company's chairman, said on Wednesday that the 13.56 MHz mobile payment standard got the final nod from Chinese authorities, the Beijing News reported.

This is the first official indication on which standard will be selected and used across the country. If the decision is made, China will eventually settle down the issue after years of fighting over a nationwide mobile payment standard.

It also means that China Mobile Ltd, the nation's biggest telecom carrier, is about to lose the battle, since the operator has been promoting its mobile payment standard based on 2.4 GHz technology.

In addition, hardware manufacturers who partnered with China Mobile to invest in the company's technology may also fail to see returns. Nationz Technologies Inc, the sole chipset provider for the 2.4 GHz mobile payment standard, has seen its stock price almost halved this year.

According to a report by KPMG, Chinese people have a strong willingness to close deals through handsets. About 84 percent of Chinese respondents said they would like to use mobile payment services, while the world average was 66 percent, the report said.

[hebercreeper]

I bought a few today. While I'm not a fan of the AR, I think it should mean something that they're able to use the AR from the big 3 as collateral to fund future platform rollouts.

[cino]

i hate this continued weakness. i thought i was buying at a 52 week low ($1.27)! LOL

gla and let's hope for better days here...

[hebercreeper]

One thing worth noting & I don't feel like pulling up the filing to copy/paste, CEO actually secured a loan from a bank for the company with his personal assets. I wanna say he listed his assets in $600-700k range.

His purchases in the past have seemed more like token buys but he is not a wealthy man by Chinese businessman standards.

Still watching closely but still amazed at the dumper just camping out a nickel or so above the lowest ask. The problem being he likes to unload.

Chawt not looking too bad if the dumper wouldn't mind holding off for a while. Problem is, due to the reverse merger before the IPO, we have no idea who this is.

[BiotechValues]

Wouldn't be surprised to see a Form 4 or two filed soon.

This would be the perfect time for insiders to put their money where their mouths (and press releases) are with regards to their repeated guidance of $23M in net income for the year.

With Verifone already owning 5% of the company I suppose it's a buyout candidate as well.

[cino]

yeah, it's at a tempting price. i MAY add a lil but have some other bids in...

but i could ave. down here as think i'm in at like $1.15-ish.

gla...

[BiotechValues]

Added more TBOW today- and am looking for more.

On the bid now if anyone wants to sell...


CSP

[cino]

all i can say is, this is pretty weak. hopefully gets better.

gl2a

[cino]

i'm getting whacked too! haven't read the new release yet.
gonna try and average down here in .80's but looks like it's rising.

i did see late last night re: china marketDOWN. figured that = BAD/weak tbow pps.

BUT, i didn't expect THIS low.

gl2a

[eom7]

WOW... this looks awesome! Very nice DD. Thanks for posting on the China Growth Stocks.

[beach_trades]

TBOW gettin whacked in After Hours
0.9510 0.31 (24.52%) 7:58PM EDT

http://finance.yahoo.com/news/trunkbow-announces-second-quarter-2012-213400435.html

[Stream205]

TBOW: Looking quite good.

They managed a nice profit while switching over to mobile payment from the old platform of one time value added services.

With Paypal now out of the way in China, TBOW is looking damn good heading into the final two quarters of 2012.

The year over year is no surprise. They got a 4 million dollar grant in Q2 2011 that they did not get in Q2, 2012 yet still turned a nice profit.

If there is another China mobile payment play trading at this price with the growth due in coming quarters please let the board know about it.

[cino]

surprised it's up after the rescheduled CC. but looking OK right now.

gla

[cino]

'China Pick', THNX for ur posts! helpful. good luck all.

[Stream205]

TBOWs new partner.

I never heard of them but i think a lot of other folks have.

They are huge.

http://www.chinaccs.com.hk/eng/global/home.htm

[BiotechValues]

TBOW basic due diligence I put together on the CGS board

Of special note is the strength of the auditor for TBOW.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78492285

CSP

[BiotechValues]

cino- people are extremely cautious in this space as you know, for good reason.

I started buying TBOW today after watching it for weeks. Due to their record q2 in 2011, (of which $4.7M was from government grants), I am expecting lower eps to be announced. However, I am expecting operating results to have improved and think people will be able to tell the difference between a one time event and continuing results. Forward guidance for the 2nd half of the year was very strong when they announced in q1- hopefully it stays that way.


As for why an IPO immediately following the reverse?
The company may have been advised that they would have more credibility as an IPO, so they went with it. At the time they IPO'd CCME was being investigated and everything was falling apart in the China stock space- it'w when if you were legit, you really needed an IPO to be taken seriously by the market. So- it may truly be a case of their management deciding that they didn't want to be tainted with the reverse merger red flag, and go with an IPO. I don't know. But it's a good question. I don't think it makes them any less trustworthy since they still had to go through the IPO veting process in the end- and rermember, they were IPO'd after some serious China "issues" were already well known.

[BiotechValues]

That's a good question stonehouse- maybe something to ask on the conference call tomorrow AM?

Pages 16-17 of the 10-K seem to suggest that the significant revenue generating patents are the property of TBOW:

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8517367-1059-364651&type=sect&dcn=0001144204-12-018759

[cino]

yep, near 52 low. seems pretty stable around the current pps. i didn't read the "news" today yet.

i think it's an interesting stock, with a potential upside.
NOW, IF you bought at $4-5 or u were part of the reverse merger (or split? can't remember which right now) u prob. aren't real happy. r/m esp. seem to rarely benefit shareholders.

i was just trolling around for poor performers, with a cheap(er) pps with a postive EPS. this was the 1 i bought, but just a little right now (150) sh.).

the p/e stinks right, but...

and another post from "herber..." if u didn't read, SORTA says "they may be a lil shady". that's MY interpretation.

BUT he had a lot of good background on the co. not that positive but still good info.

Chinese stox are in disfavor by MANY (analysts included) cos of recent lying from co.'s there, etc. i can understand that. i only vaguely remember cos i really don't own any true Chinese stox.

up to 16 followers here now!! whoo hooo!!

gl2a

[IPO$]

high of $5....opened over a year ago....appears to be at a low

[cino]

I read alot-didn't see ANY things you mentioned (or most of them). so a sincere THANK YOU for the background.

u pretty much answered why the pps is near 52 wk. low.

can't remember if it was TBOW re: VAT refunds and that was part of the reason for 'funny' cash flow.

they make it look like they are cash positive from what i read.

by the way, i HATE r/m. they always seem shady and they almost always shaft the shareholders.

thnx again.
i'll be watching too. glad i only bought 150 shares. w/something like this (52 wk low) i wasn't gonna buy alot.

gl2a

[hebercreeper]

I'm interested in this story & was once heavy in this name but will happily point out the red flags. I will preface by saying that I am following this closely & may buy back in on what I expect to be a dip after earnings (strictly guessing):

1) China stock
2) Reverse merger before going public, then IPO (why the need for the RM at all)
3) IPO right before huge downfall in China names due to fraud concerns (IPO market for China names had already gotten ugly & they went through with it anyway)
4) Very little cash...what's the status of the R&D facility announced shortly after IPO that they plowed so much cash into (spending on real estate major red flag in this space). This was a major cash outflow and seems to be forgotten.
5) Even though Verifone is an investor, TBOW turned around and pledged that entire investment for Verifone hardware. Further, $2 warrants when share price was higher resulted in gravitation to that level...why so low? Was this really an investment by Verifone?
6) Price action is ridiculous...there is always a massive seller. Again, why the need for the reverse merger before the IPO. This resulted in dilution & lesser known parties involved.
7) Lumpy revenues...really not sure how they turned such a profit with their MVAS offerings some quarters, than nothing in others. They have stated MPS adoption is to pick up second half of 2012-they are set to report Q2 results. Translation?
8) Accounts receivable mostly from big 3 telecoms...are you familiar with the TSTC story? Not always easy to collect from them.
9) Again...no cash, which is not always a bad thing in this space but tough if you're trying to roll out mobile payment platforms in new provinces.

There are a lot of things I like about the TBOW story but not everything makes sense to me. With these China names, you never know what you get. Even if the business is entirely legit, management intentions must also be. Based on share price channeling 1.10-1.25, they better not disappoint.

I know there are some folks involved with TBOW that have followed ihubbers remarks in the past & I welcome any responses to these issues. I still feel Verifone may have an interest in this name. After all, head of Verifone legal dept is on TBOW board. That being said, $PAY wouldn't have an interest in paying any more than they have to for any acquisition.

[cino]

what am i missing here if anything? i bought a little friday for the 1st time.

the co. seems to be perofitable and cash positive in a growing field, even in a china 'slow down'.

stock is near it's low which i like to get in, but of course raises the ? why is it at it's low. seems a bit of reduction in cash flow, but...

so i like the upside esp. at this pps.

i kno wthere r only a few people here... BUT what are the negatives i'm missing? i tried to look at a lot of things, financial, etc.

gl2a

[Stream205]

PayPal out of China?

The skids are greased.

Look for a very nice 10-Q on Tuesday.


http://my.news.yahoo.com/paypal-loses-biggest-asia-partner-110307532.html



As for PayPal, it’s a blow to its shaky efforts in Asia - and leaves the online payment platform without any major partnership in mainland China. Chinese online shoppers mostly use a mix of Alibaba’s Alipay, Tencent’s Tenpay, and the Maestro-esque UnionPay.


NOTE: TBOW and ChinaUnionPay are partners.

[stonehouse]

If you go to SIPO ( State Intellectual Patent Ogranization ) in china and type trunkbow into the patent search box after you have changed the second box from title to applicant name you will find that trunkbow only has three patents assigned to it in china. The other patents that trunkbow speaks of in their annual and quarterly filings are assigned to Hou Wanchun and others. My question for this board is this, has anyone seen in edgar ( sec documents) where trunkbow has worked out agreements with the assignees of these patents that we can use them exclusively for a period of time ( example - 3 years ) after termination of their employment or god forbid their death? My concern especially for a technology company like this, is if key players leave the company with the rights to the patents that trunkbow has been using to establish and maintain their competitive edge, and trunkbow doesn't have the rights to use those patents for a reasonable period after, we as shareholders will be negatively affected. What do we really have has shareholders ?

[tbirdman]

Link back, TBOW still pos

[tbirdman]

TBOW pos