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What was the email for Sammons?
810000 shares available at .20 sbarsellataim.com
Why assume acquisition is to be made with empty tanks? Such acquisitions usually include inventory.
AEMD about to enter into a contract. Can anyone speculate about any pending deals? Sbarsell@aim.com
There is one new and important fact alleged in the brief: That the auditor resigned because its demand for a forensic audit went unanswered. The brief claims that a forensic audit is now underway. This is important because it means Price Waterhouse was hired to do a forensic audit and was not just hired to support the litigation.
The art of war guy, Sunzu, says we are in a situation similar to 2008.
I agree except today the valuations are even better. From the lows at the end of 2008 to March of 2010 my portfolio went from 1x to 4x. Listen to the wise old investors like Pappy over at the WKBT board.
Very big news because the cash is $61.82 million. The cap is 30.4!!Confirming the cash confirms the earnings and cash flow.
EPS | P/E (2 MRQ Projection): $1.50 0.65x
CFPS | P/CF (2 MRQ Projection): $1.84 0.53
Price/Sales (2 MRQ Projection): 0.25
Price/Book (MRQ): 0.37
EPS | P/E (2 MRQ Projection): $3.10 0.36
CFPS | P/CF (2 MRQ Projection): $2.92 0.38
Price/Sales (2 MRQ Projection): 0.19
Price/Book (MRQ): 0.23
These are the numbers based on the most recent report which is now over 6 months old. The company was growing at 50%+ YY so the numbers now would be even better. The current cap is about 50 million while the cash may be as high as 200 million.
All fraud you say. There are a lot of allegations but so far there is no proof of anything. Do the facts support the idea that possible bank irregularities are being used to manipulate the stock price. The right guess will be rewarded.
"Its the end" No! the story continues: Staar switches to the long side buying at current prices. The bad loans are written off, there is a new audit showing CCME still has a huge cash hord. Staar makes another 100 million.
Lets assume Staar sold 10 million shares short at an average price of 16.20. Then its profit is about $150 million. So no need to worry about its 30 million investment.
Jtechkid, I like your hypothesis but lets carry it a bit further:
7. Staar learns of the illegal loans and sees a chance to make Big money through shorting and possible by the receipt of penalty shares.
8. Staar sells short through proxies. And where proxies cannot borrow shares they sell naked knowing Staar will make good.
9. Staar tips off the auditor and otherwise pressures them to resign. Staar's phony lawsuit, the resignation of its Director and the promotion of unfounded hit pieces are all part of the game plan.
Can anybody add to the story?? Lets work this all out. John
The current pe is about .30 with earnings of 4.39. At a price of .10 the pe would be .002!!! But even more amazing is the price to book ratio of .07 and the price to sales ratio of .05. The company expects earnings growth in 2011 to be equal or better than 2010.
As a real estate development company one would expect earning to be erratic. A better measure of growth would be book value which has grown from in 2008 21.6 mil to 30.3 to 36.6 in 2010. Latest quarterly book is 40.7 million.
http://www.fixyou.co.uk/tracker_srm.php?s=GHII.OB
considers this a high risk stock because it is OTC BB, a reverse merger company, no analyst coverage and a high increase in accounts receivables.
On the other hand the reverse merger took place 5 years ago and should no longer be considered a factor. The company has a reputable auditor.
Sell CCME now at 4.00 in private sale. If there is interest I will set up an escrow account. Reply to sbarsell@aim.com
Here's new theory; interest free loans to third parties. The 10k for XNYH states:
the largest portion of our working capital is now invested in developing strategic relationships that will, we hope, benefit us in the future. Within the Chinese business community, the extension of interest-free loans is a normal method of securing good relations and future opportunities. For that reason, at December 31, 2009, we had extended a total of $4,879,468 in short-term, interest-free loans to parties that have no other affiliation with Harbin Golden Sea or its management.
CCME management may have been under pressure from their buddies to make short tern unsecured loans from their huge cash horde. Some loans may have gone bad or the repayment delayed and the deals are discovered by the auditor. Management cannot make good and the auditor resigns. All else follows.
Does the automation of the BMOD test prevent operator error?
Between 10 and 60 percent of all Pap smears are incorrectly analyzed. False negatives, which are far more common than false positives, may be reported 20 and 45 percent of the time. A gynecologist or family doctor who doubts the accuracy of any Pap smear report will repeat the screening and perform any appropriate diagnostic procedures.
Rain, was there not talk of 100% accuracy? Is 83% a disappointment?
The idea that the auditors resigned out of fear is reasonable except that it does not explain the termination of the CFO. The only theory consistant with all the facts is that Jacky embezzeled funds by using his position to alter the books. The auditors after discovering the discrepancies in the financials were forced to resign because they could not rely on them. And that is exactly what they said.
Was Jacky paid off by the shorts to assure the audit failure? Possible, but unlikly because he would have been foolish indeed to invest his brib money in CCME. Its much more likely that he embezzled the funds from the company's huge cash horde and did so by altering the books. As CFO he had the means and opportunity. He could easily assume the a mere million and 1/2 would not be missed. When the altered books were discovered by the auditor they could not rely on them and were forced to resign. This theory also explains why Jacky was fired by CCME.
Where Jackie got his money to buy CCME stock was a matter of extensive speculation. Lets assume that he stole the money from the company by altering the books in his capacity as CFO. This explains a lot. The auditors could not rely on the financials presented by the company and we have a reason why Jackie was fired.
The facts support this hypothesus. All the facts we know support the idea that the company is legitimate and all the facts we know support the idea that the slanders of the shorts are false. Embezzelment by an insider is an issue not covered in all the previous discussions and it explains the actions by the auditor and the company.
This speculation, if true, is good news. First the fraud is by an individual and not the company. CCME is the victum not the perp. Second the losses to the company would be small. Jackie's stock, purchased with stolen money could simply be cancelled.
One more point-the short interest in CCME is 65-75%. That is huge and unnatural. It means that with 36.9 million shares outstanding about 25 million shares need to be purchased in order for the shorts to cover. All this buying will prop up the price of the stock. Fears of the price going to 5 or less are unfounded. This is particularly true if the embezzlement theory turns out to be the case.
Investopedia explains Short Interest
Short interest is typically expressed as a percentage. For example, 3% short interest means that 3% of the outstanding shares are held short"
The way I understand Reg D is that it allows the COMPANY to sell securities but the Buyers receive restricted stock that cannot be sold within one year.
http://www.sec.gov/answers/rule506.htm
My WKBt certificate is red stamped with a warning that the securities may not be sold. sbarsell@aim.com
As I understand it a two month delay on sale would be called a lock up agreement. Restricted shares require compliance with SEC Rule 144. http://www.sec.gov/investor/pubs/rule144.htm
Recent PIPE buyers received restricted shares. However they may be selling short to lock in their profit.
Snow, why do you say earnings will be flat?
In an open letter to shareholders, China Kangtai Cactus CEO Mr. Jinjiang Wang said, “We are nearing the end of our most successful year ever. Our profitable growth is accelerating as Chinese consumers and farmers increase their use of our cactus products. Fourth quarter revenue will reach a record $12.2 million. This will represent a revenue gain of 43% over revenue of $8.5 million in 2009. For the year, we are anticipating revenue of $36.0 million, a gain of 35% over 2009 revenue of $26.5 million.
can't squeeze much juice from a lemon
True, but if they are located in China they are subject to Chinese criminal law which as we have seen can be quite draconian for fraud and misrepresentations up to and including the death penalty.
Miracle trees not that big a deal . I have several in my garden in Hawaii. Effect is not that remarkable. John
Thanks Dew. This is the great benefit of the group. John
"Channel stocking' Did this artificially overstate 3Q profits by MNTA? I would assume that profits would not be booked until the drug was sold at retail. Why would MNTA's partner pay royalties before that? If this is true then the script number accurately reflects quarterly profits and my 247 mil 4th quarter mLov profit projection would be accurate.
Moreover if there is a delay between collecting accounts receivable and royality payments to MNTA then the start up royalities of the 3Q would have been understated not overstated.
"Channel stocking' Did this artificially overstate 3Q profits by MNTA? I would assume that profits would not be booked until the drug was sold at retail. Why would MNTA's partner pay royalties before that? If this is true then the script number accurately reflects quarterly profits and my 247 mil 4th quarter mLov profit projection would be accurate.
Moreover if there is a delay between collecting accounts receivable and royality payments to MNTA then the start up royalities of the 3Q would have been understated not overstated.
For the quarter ended Sept the company reported 44 million from the sales of Lovenox. That was for only 9 weeks of a 13 week quarter. It has also been posted that the 44 is less 35 mil due to development costs paid to its partner.
I confirmed this information in the 10Q foot notes. The 44 mil was net after a 35 mil one time reimbursement for development costs. So Lovenox earnings for the nine weeks was a normalized 79 million. Scripts written in forth quarter will be 3x that of the startup 3Q. Expect 227 mil for the 4th quarter or 4.54 per share from Lovenox.
When this becomes common knowledge expect share price to double. If Copexone is approved in the next few days expect price to double again.!!!!
What will the sales be? For the quarter ended Sept the company reported 44 million from the sales of Lovenox. That was for only 9 weeks of a 13 week quarter. It has also been posted that the 44 is less 35 mil due to development costs paid to its partner.
I confirmed this information in the 10Q foot notes. The 44 mil was net after a 35 mil one time reimbursement for development costs. So Lovenox earnings for the nine weeks was a normalized 79 million. Scripts written in forth quarter will be 3x that of the startup 3Q. Expect 227 mil for the 4th quarter or 4.54 per share from Lovenox.
When this becomes common knowledge expect share price to double. If Copexone is approved in the next few days expect price to double again.!!!!
And since no one will buy the higher priced, more difficult test RPC will not have any income.
GMBP, the company, will receive cash and stock in the new company. However the deal has not been finalized or if finalized has not been published so anything is possible.
How would you define your term "black box"
In the third quarter, however, we obtained a $4.49 million collateralized bank loan, with an interest rate of 5.841%. We used a portion of the funds to increase our inventory in anticipation of growth, and used another portion in increase our loan to Heilongj.....The largest loan, $6,287,400 outstanding at September 30, 2010) has been made to Heilongjiang Jindi Real Estate Development Co., Ltd., in anticipation of future benefits to our real estate assets.
So for every .09 share we own .32 has been loaned out to an unrelated third party at no interest.
Maybe the managers have been released from jail. Seriously though, I heard from a Hong Kong resident that the subsidiary companies continued to operate after the crack down on the parent company.
Superfly, I agree. The prudent investor will wait until the company demonstrates its ability to market the drug. We will know in about a year. John
Superfly, I agree. The prudent investor will wait until the company demonstrates its ability to market the drug. We will know in about a year. John
Yes, I have translated the 20 billion cap into a price per share but the result is too inflammatory for possible excitable, immature readers.
Price-to-Sales Multiples
The generation of reproducible revenue by a company represents a major milestone in its life cycle and one that immediately enables investors the opportunity to value the company by price-to-sales multiples. The posting of revenue, either in the form of grant funding, licensing revenue, R&D contract payments, or from product sales, enables investors to value companies based upon the ability As companies mature to market capitalizations... For comparison, major pharmaceutical conglomerates generally trade at about 5 times their sales. The 10 to 20 times price-to-sales ratios of drug delivery firms can be attributable to the fact this is still an emerging industry sector. Drugdeliverytech.com