I am updating my staus.
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YONG - yup, watching pps and hitting head. Flood was mid-year (May / June) and in the South of the country while YONG's sales are mostly more Northern/Central.
From the August CC ...
Roth Capital
Adverse weather have any impact?
No impact. SW provinces affected but not their core markets.
*shrug* don't think it's a sell on the basis of the flood information but the collective market seems to think otherwise.
rich
RINO - MuddyWaters are nothing if not ambitious! eom
rich
RINO - MuddyWaters initiating coverage (Guess it's not Strong-Buy)
http://www.muddywatersresearch.com/research/rino/initiating-coverage-rino/
rich
Yellow-Dawn - they've got the G20 coming up and they want to air their views ahead of the conference and apply pressure. Similarly, Germany have made references along the same line. China and Germany both need some redress - at least China is upping their wages and in so doing declining their competitiveness.
China keeps using this belligerent tone but it's working against them - forcing Asian neighbors to move towards US.
This is not a military assessment board and I don't spend any time comparing forces but it's clear that US military's technology is way in advance of anyone else which is why the Chinese have been asking for it (little chance of that happening). US have kept their military spending up - with good reason. I don't think they need to fight but they can't allow the fear superior Chinese military to influence agreements.
rich
CAGC - less revenues and more than doubling of G&A's going to do that to you. More tax on less profit as well to throw salt into wound. There's some 'plaining to do at the CC.
rich
FEED - don't follow the company but it looks like a massive write off "Impairment of intangible assets" which looks like the main reason.
rich
CELM - must get pre-market sometime. Still, gives me more time to analyze the company instead. Anyway, the company is executing it's objectives set out at the start of the year. Look at a couple of acquisitions - they have a serious war-chest of cash for such a small company.
I hope the pristine metrics are unchanged by this addition.
rich
CELM -bingo! They said they were after a couple of acquisitions that would be add to earnings but, importantly, get them into new verticals.
Looks like they paid in cash (see below) - Rev $7.4 M and NI $1.47 (assuming Yuan to $ is 6.8). So P/E 5? $7M is basically the cash flow of Q4 assuming they hit their numbers. Marvelous a new vertical for the price of a quarters cash flow and adding on I assume $1.4M NI to a company doing 17 - 20NI in 2010.
Paying in Cash...
http://www.sec.gov/Archives/edgar/data/1421526/000114420410058405/v201548_ex10-1.htm
8.
The Parties agree that the Consideration contemplated hereunder shall be paid in three installments:
(A) First Installment: RMB 5,000,000 (“First Installment Consideration” or “Deposit”), which shall be paid to the bank account designated by the Seller within 10 business days after the Execution Date;
(B) Second Installment: RMB 41,322,100 (“Second Installment Consideration”), which shall be paid to the bank account designated by the Seller within 3 months after the Closing Date;
(C) Third Installment: RMB 3,000,000 (“Third Installment Consideration”), which shall be paid to the bank account designated by the Seller within 7 business days in accordance with Section 10 below after all the conditions prescribed in Article 13 have been consummated or waived in written by the Controller or the Purchaser.
rich
Emphasis on could Either they get ignored - nothing more embarrassing for an analyst. Or it dips on open and more buyers step into the sale price. It was a good earnings report and it's a cheap stock so any affect is going to be temporary.
I would love to see their justification but the headline reads as BS.
I'm also wondering what the affect their initiation had? I don't remember it to be significant. Do others? Seem to remember a nice buy target being ignored as it headed into a downward spiral.
I bet, secretly, the justification is "phew it's been on a run and it needs a rest".
rich
I would love to see the valuation justification I need a good laugh. It could be a rocky day or two to wash them out but at least we know why they are doing it - 'cause someone is selling an "overvalued" stock (hehehe).
rich
FlyonWall says GlobalHunter has downgraded
Though pps target raised.
China MediaExpress downgraded to Accumulate from Buy at Global Hunter Global Hunter downgraded China MediaExpress following the company's Q3 results due to valuation. However, the firm raised its target for shares to $24 from $21. :theflyont
Due to valuation? Oh well, analysts do like changing their minds.
rich
http://www.theflyonthewall.com/permalinks/entry.php/CCMEid1328201/CCME-China-MediaExpress-downgraded-to-Accumulate-from-Buy-at-Global-Hunter
CCME GlobalHunter - Amusingly they raised the share's value 21 >> 24.
China MediaExpress downgraded to Accumulate from Buy at Global Hunter Global Hunter downgraded China MediaExpress following the company's Q3 results due to valuation. However, the firm raised its target for shares to $24 from $21. :theflyont
Due to valuation? Oh well, analysts do like changing their minds.
rich
http://www.theflyonthewall.com/permalinks/entry.php/CCMEid1328201/CCME-China-MediaExpress-downgraded-to-Accumulate-from-Buy-at-Global-Hunter
Rev of $120M would hit the spot and it would show revenue growth Q/Q. All we want though is the reaffirmation of the 500M rev for the year - anything on-top of that is bonus time.
Difficult to guess what the affect of the diesel shortage is - could be mildly positive if for instance they have high demand but not enough supply or it could be wildly good if they have high demand and high supply - simply unknown.
CC could be interesting.
rich
Done eom
BSPM running +10% and already over daily volume... Still laughably cheap... 70 cents for year and recently confirmed it was going to do around that. All for 3.50 hehe...
rich
Muddywaters got an email that they set up new website. I note that they are in Hong Kong. http://www.muddywatersresearch.com/
rich
Buyback - he said that it was announced near the end of the quarter and nothing was bought by the Sept 30th.
For the record I can understand him quite well.
rich
CCGY - well they ain't missing the numbers. The question is can the adapt to the demand? Can they get the feedstock in to rampup. You'd think that their thin margins are going to fatten during Q3 and or Q4.
rich
Going to be Mon 8.45 then? They hate to break a routine
rich
CCGY - make diesel as well don't they eom
rich
@Close Shanghai +1% Hang Seng +0.4% eom
China Buying Euro Bonds: Classic China, wait till things are hopeless and then help. Ireland next
rich
Nice - that looks like the raw information. I assume that this is fed into the "institutional holdings" of the Naz institutional webpage.
rich
I assume there's an SEC filing type that allows you to get at the raw information? Might be the 13F? Perhaps someone knows for sure vs me Googling and guessing?
http://www.sec.gov/answers/form13f.htm
I don't think institutions want you to know what they've got as it may allow others to exploit that knowledge in the market. Obviously, they need a little transparency to protect investors from Madoff types so they get a 13F every quarter as a compromise.
Anyway, don't pretend to have knowledge in this area.
rich
MS info is from 6/30 - I think they have to update ownership from 9/30th by the 15th of this month.
http://www.nasdaq.com/asp/holdings.asp?symbol=CCME&selected=CCME&FormType=Institutional
rich
Hey, I don't even know what the diluted is going to be for Q3 2010. If you play around with Q2's numbers and the new buses you should be getting a base of around 30M (assuming no rabbits from the hat). The rest can look after itself.
Yup, it was 0.56 [1] see 17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
rich
[1] http://www.sec.gov/Archives/edgar/data/1399067/000114420410017463/v179137_10k.htm
Pre-WEEE Great news - he's got a winner on his hands and he keeping the momentum.
rich
2009's Q3 in what was to become the underlying business were announced in a PR. The SEC doc of the SPAC was irrelevant in terms of numbers. The PR went a lot like this...
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4_voQxV4PRU
China MediaExpress Holdings, Inc. Announces 2009 Third Quarter Financial
Results
Third Quarter Net Income Rose 83% on 65% Increase on Net Revenues
Business Wire
FUJIAN, China -- November 16, 2009
China MediaExpress Holdings, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS), China’s
largest television advertising operator on inter-city express buses, today
announced the financial results of the Hong Kong Mandefu Holdings Limited
(“CME” or “Company”) for the three and nine months period ended September 30,
2009.
Financial Highlights – Third Quarter 2009 vs. Third Quarter 2008
* Net revenues increased 65% to $26.1 million in the 2009 period compared to
$15.8 million;
* Gross margin for the 2009 period was 67% of net revenues;
* Operating income increased 83% to $15.5 million in 2009 compared to $8.5
million; and,
* Net income increased 83% to $11.7 million compared to $6.4 million.
Financial Highlights – Nine Months 2009 vs. Nine Months 2008
* Net revenues increased 38% to $64.0 million in the 2009 period compared to
$46.2 million;
* Gross margin for the 2009 period was 64% of net revenues;
* Operating income increased 45% to $37.2 million in 2009 compared to $25.6
million;
* Net income increased 43% to $27.4 million compared to $19.2 million; and,
* As of September 30, 2009, the Company had $40.9 million in cash and cash
equivalents with no debt.
Zheng Cheng, CME’s Founder and CEO, commented, “2009 has been a year of
transformation as CME became a public company. We have taken several steps to
further strengthen our position as the market leader in the express bus
advertising industry in China and to take advantage of new opportunities
ahead. We are well positioned to capitalize in the rapid increase of the
advertising spending, as China is the second largest advertising market in
Asia, and one of the largest and fastest growing markets in the world. We have
placed our Company in several large Chinese markets, including the five
municipalities of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing. Third
quarter and nine month results are an indication that our efforts have been
successful. Our net revenue and net income for the first nine months of 2009
have already exceeded net revenues and net income for full year 2008.”
Mr. Cheng added, “We continue to expand our operations, both in the areas
where we have a strong presence and in new areas as well. As of today, our
network includes 46 bus operator partners, up from 40 in mid-September, with
whom we have entered agreements for terms ranging from five to eight years.
The total number of buses equipped with our television systems is now over
20,000, increasing approximately by 2,000 buses since mid-September. In the
fourth quarter, we plan to further expand our geographic coverage through the
signing of several new agreements with the new bus operators. Our network now
covers the municipality of Guangzhou, China’s third largest city, after
Beijing and Shanghai and also the province of Shanxi.”
Mr. Cheng continued, “Our platform has attracted numerous well-known
international and national brands to our advertising network. More than 500
advertisers have purchased advertising time on our network either through
advertising agents or directly from us. Our clientele includes local brand
names as well as those well-known international and national brands such as
Coca Cola, Pepsi, Siemens, Hitachi, China Telecom, China Mobile, China Post,
Toyota, Bank of China and China Pacific Life Insurance.
“In addition to accelerating our top line growth, we are also working to
improve of our profit margins. In that regard, we have increased our sales
force to 65 people to focus on direct advertising clients, where we enjoy a
better margin compared to clients signed through advertising agencies. At the
end of 2008, direct clients accounted for only 2% of our net revenues. For the
first nine months of 2009 direct clients represented 16% of our net revenues
from those advertising timeslot. We expect this percentage to reach 20% by
year-end and approximately 40% by the end of 2010.
“In the third quarter, we also started to broadcast the embedded
advertisements which are displayed during the broadcasting of the content and
this definitely brings a new source of revenue to our current platform.”
Jacky Lam, CME’s Chief Financial Officer stated, “CME generated $29.9 million
of cash from operating activities in the first nine months of 2009. Our
balance sheet remains very strong and as of September 30, 2009, we had $40.9
million of cash with no debt.”
Mr. Cheng concluded, “Historically, our fourth quarter is seasonally our best
quarter. It appears that the 2009 fourth quarter will be no exception.”
Institutional Investor Meetings
The management CME will hold meetings with current and prospective
institutional investors during the first week of December. Accredited
investors may request a meeting with management by contacting: Lena Cati of
The Equity Group at 212-836-9611 begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting or lcati@equityny.com.
About CME
CME, through contractual arrangements with Fujian Fenzhong, an entity majority
owned by CME’S former majority shareholder, operates the largest television
advertising network on inter-city express buses in China. While CME has no
direct equity ownership in Fujian Fenzhong, through the contractual agreements
CME receives the economic benefits of Fujian Fenzhong’s operations. Fujian
Fenzhong generates revenue by selling advertisements on its network of
television displays installed on over 20,000 express buses originating in
fourteen of China’s most prosperous regions, including the five municipalities
of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing and nine economically
prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei,
Anhui, Hubei, Shandong and Shanxi which generate more than half of China’s
GDP.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 (the “Securities Act”), as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Forward-looking statements include, but are not limited to
statements regarding expectations, hopes, beliefs, intentions or strategies
regarding the future. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements. The
words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements in this report
may include, for example, statements about:
* The Company’s goals and strategies;
* The Company’s future prospects and market acceptance of its advertising
network;
* The Company’s future business development, financial condition and results
of operations;
* Projected changes in revenues, costs, expense items, profits, earnings,
and other estimated financial information;
* The Company’s ability to manage the growth of its existing advertising
network on inter-city express buses and expansion to prospective
advertising network on high speed railways;
* Trends and competition in the out-of-home advertising media market in
China;
* Changes in general economic and business conditions in China; and
* Chinese laws, regulation and policies, including those applicable to the
advertising industry.
HONG KONG MANDEFU HOLDING LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(Amounts in thousands of US dollars, except for number of shares and per share
data)
For the three months ended For the nine months ended
September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Sales, net of
business tax and $ 26,122 $ 15,783 $ 63,983 $ 46,233
related surcharges:
Cost of sales: (8,630 ) (6,459 ) (22,992 ) (18,359 )
Gross profit 17,492 9,324 40,991 27,874
Operating expenses:
Selling expenses (1,371 ) (313 ) (1,897 ) (823 )
General and
administrative
expenses (588 ) (524 ) (1,941 ) (1,452 )
Total operating (1,959 ) (837 ) (3,838 ) (2,275 )
expenses
Operating income 15,533 8,487 37,153 25,599
Interest income 27 38 70 77
Income before 15,560 8,525 37,223 25,676
income taxes
Income tax expenses (3,896 ) (2,162 ) (9,823 ) (6,478 )
Net income $ 11,664 $ 6,363 $ 27,400 $ 19,198
Foreign currency
translation $ 11 $ 539 $ (36 ) $ 977
adjustment
Comprehensive $ 11,675 $ 6,902 $ 27,364 $ 20,175
income
Earnings per share
Basic and diluted $ 1,166.4 $ 636.3 $ 2,740.0 $ 1,919.8
Weighted average
number of ordinary
shares outstanding:
Basic and diluted 10,000 10,000 10,000 10,000
HONG KONG MANDEFU HOLDING LIMITED
CONSOLIDATED BALANCE SHEET
(Amounts in thousands of US dollars)
September 30, Dec. 31, 2008
2009
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 40,855 $ 29,997
Accounts receivable, net 11,293 6,065
Prepayment and other current assets 26 59
Total current assets 52,174 36,121
Non-current assets:
Property, plant and equipment, net 10,864 11,417
Deferred tax assets 1,910 1,578
Total non-current assets 12,774 12,995
Total assets $ 64,948 $ 49,116
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 2,030 $ 1,565
Accrued expenses and other current liabilities 3,045 1,301
Income tax payable 4,567 3,072
Amount due to a related party 1,508 798
Accrued liabilities for the purchase of 1,455 1,072
property, plant and equipment
Total current liabilities 12,605 7,808
Non-current liabilities:
Accrued severance payment 393 307
Deferred concession fees 7,145 6,005
Total non-current liabilities 7,538 6,312
Total liabilities 20,143 14,120
Commitments and contingencies
Shareholders’ equity:
Ordinary shares $0.13 par value, 10,000 shares
authorized and 10,000 shares issued and 1 1
outstanding
Statutory reserves 4,314 4,314
Accumulated other comprehensive income 1,348 1,384
Retained earnings 39,142 29,297
Total shareholders’ equity 44,805 34,996
Total liabilities and shareholders’ equity $ 64,948 $ 49,116
HONG KONG MANDEFU HOLDING LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of US dollars)
For the nine months ended September 30,
2009 2008
(unaudited) (unaudited)
CASH FLOWS FROM (TO) OPERATING
ACTIVITIES
Net income $ 27,400 $ 19,198
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation of property, plant and 2,351 2,324
equipment
Deferred tax benefits (332 ) (646 )
Changes in operating assets and
liabilities:
(Increase) in accounts receivable (5,228 ) (3,197 )
Decrease /(increase) in prepayments 33 (45 )
and other current assets
Increase in accounts payable 465 797
Increase in accrued expenses and other 1,744 436
liabilities
Increase in deferred concession fees 1,140 2,266
(Decrease)/increase in accrued 86 318
severance payment
Increase in income tax payable 1,495 1,035
(Decrease)/increase in amounts due to 710 (2,396 )
related parties
Net cash provided by operating 29,864 20,090
activities
CASH FLOWS (TO) INVESTING ACTIVITIES
Acquisition of property, plant and (1,415 ) (4,591 )
equipment, net of related payables
Net cash used in investing activities (1,415 ) (4,591 )
CASH FLOWS (TO) FINANCING ACTIVITIES
Dividends paid (17,555 ) -
Net cash (used in) financing (17,555 ) -
activities
Net increase in cash and cash 10,894 15,499
equivalents
Effect of foreign currency translation (36 ) 977
adjustment on cash
Cash and cash equivalents at the 29,997 6,364
beginning of the period
Cash and cash equivalents at the end $ 40,855 $ 22,840
of the period
Contact:
China MediaExpress
Jacky Lam, Chief Financial Officer
jackylam@mediaexpress.com.hk
or
Investor Relations:
The Equity Group Inc.
Lena Cati, 212-836-9611 begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting
lcati@equityny.com
Linda Latman, 212-836-9609 begin_of_the_skype_highlighting 212-836-9609 end_of_the_skype_highlighting
llatman@equityny.com
#5 on Top 15 Active Stock Traders Forums
Like old times....
rich
China's exchange-rate has risen faster than you think.Really.
http://www.economist.com/node/17420096?story_id=17420096&fsrc=rss
rich
TSTC - they get a lot of credit for not diluting their stock. It's been tough for them with the receivable issue and all.
2008 10.4M diluted
2009 10.4M diluted
2010 10.5M diluted
Not many can make that claim.
rich
LLEN - indeed - by delaying the accountancy decision they are stopping the flow of money to it. A higher valuation would also mean that they could dilute and get the acquisitions they wanted, now. So, the delay is impeding the growth of the company.
All told it gets my dumb move by management award to a coal company in H2. If they do get a big bank loan instead they get the genius management award (success and failure is such a fine line these days).
PUDA, of course, gets me dumb move by management award to a coal company in H1 for it's invitation to short it (and the shorts did) by announcing the filing without getting the financing first.
rich
LPH Plenty left in the tanks. :)
I would totally go for B1 [1], however, management have ruled it out in the last CC. They said something like we have an aversion to debt / we would get 10% rates.
I would be nice to see them use more debt assuming they can generate the cash to pay the interest.
Anyway, as I said they've ruled it out. Assuming they got the financing they can turn, for instance, $75 Million into two new plants.
rich
[1] http://www.globalspeculation.com/archives/583
LPH have shown they know how to build a new facility - so they have my complete faith.
I was looking at what they did last time... basically, they seem to spend almost 3/4 of a year after announcing it before they did the dilution ... think dilution was Q4 or 09 (don't quote me, bet GB knows ) and yet they were opening the facility in Q1 of 10. I hope I have that right. So, EPS was never compromised.
At this point the market cap is 370M (using 115M diluted)...the last facility was 37M so a 10% dilution - assuming all else be equal could give a 50% revenue burst over the 18 months or so ramping up. Certainly looking interesting.
Still, I wouldn't want to stop the run just now but the economics of the dilution are getting more attractive.
Some have said that they could do it from cashflow but it looks like it gets tied up in inventory etc - think they have 142 Million or so of cash + receivables + inventories + Advances to supplies.
rich
Some from Rev Shark he's taken part of his CCME gains and put it to work in LPH.
Fact is that word is out one way or another. I did a 30 day average of volume on Oct 8th and got 240K. Did it for Nov4th and it's over 500K. If there's any preferreds left they will wash away lickety-split.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56334649&txt2find=shark
rich
GFRE - does it have any issues with it? Was it just the auditor? I only say this because you keep seeing it's name along with ONP etc but I've never actually seen any substance.
rich
TSTC - everyone knows it's a POS. eom
rich