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I spoke with Gerry Friday, and I am still in. I may add if it goes any lower.
I am still watching this one from the side lines, so I have no axe to grind here, just interested in getting to the entire truth, and all the factors involved. I still suspect the news here is not as bad as most think it is, but I could be wrong on this one.
I ran across a post today in Alpha Seeking, on another short hammered stock I do own shares in, and a poster on that article posted this from the 10-Q of that company (ABAT), that I think may answer some questions in the entire China/US RM stock sector about the issue of moving cash to the USA to pay say dividends.
Here it is:
Why don't you read the SEC-filings instead of making stuff up?
They are considering it.
From the 10-Q
Restrictions on Dividends and Other Cash Transfers
All of our business operations are carried out by our two subsidiaries and one variable interest entity in China. In the future, in order for the U.S. parent corporation to pay dividends to our shareholders from the earnings obtained in China, we will have to transfer funds from our Chinese subsidiaries through Cashtech Investment Limited, our BVI subsidiary, and then to Advanced Battery Technologies, our U.S. parent corporation. Our ability to transfer funds in this manner will limited by two factors:
1) Statutory Reserves . The Company Law of the PRC applicable to Chinese companies with foreign ownership provides that net income can be distributed as dividends only after:
a. Cumulative prior years’ losses have been recouped;
b. 10% of after tax income has been allocated to a statutory surplus reserve until the reserve amounts to 50% of the company’s registered capital;
c. 10% of after tax income has been allocated to a statutory common welfare fund, which is established for the purpose of providing employee facilities and other collective benefits to the company’s employees; and
d. Allocations have been made to the discretionary surplus reserve, if such a reserve is approved at the meeting of the equity owners.
2) Currency Conversion . The Chinese Yuan (Renminbi) is not freely convertible into Dollars. The State Administration of Foreign Exchange (“SAFE”) administers foreign exchange dealings and requires that they be conducted though designated financial institutions. Foreign Investment Enterprises, such as Harbin ZQPT and Wuxi ZQ, may purchase foreign currency from designated financial institutions in connection with current account transactions, including profit repatriation.
These factors will limit the amount of funds that we can transfer from our Chinese subsidiaries to our U.S. parent company and may delay any such transfer. In addition, upon repatriation of earnings of our Chinese subsidiaries to the United States, those earnings may become subject to United States federal and state income taxes. We have not accrued any U.S. federal or state tax liability on the undistributed earnings of our foreign subsidiaries because those funds are intended to be indefinitely reinvested in our international operations. Accordingly, taxes imposed upon repatriation of those earnings to the U.S. may reduce the net worth of the Company.
This applies to ABAT as well as other China/US reverse merger stocks I think. I found it in the comment section of the new article:
Why don't you read the SEC-filings instead of making stuff up?
They are considering it.
From the 10-Q
Restrictions on Dividends and Other Cash Transfers
All of our business operations are carried out by our two subsidiaries and one variable interest entity in China. In the future, in order for the U.S. parent corporation to pay dividends to our shareholders from the earnings obtained in China, we will have to transfer funds from our Chinese subsidiaries through Cashtech Investment Limited, our BVI subsidiary, and then to Advanced Battery Technologies, our U.S. parent corporation. Our ability to transfer funds in this manner will limited by two factors:
1) Statutory Reserves . The Company Law of the PRC applicable to Chinese companies with foreign ownership provides that net income can be distributed as dividends only after:
a. Cumulative prior years’ losses have been recouped;
b. 10% of after tax income has been allocated to a statutory surplus reserve until the reserve amounts to 50% of the company’s registered capital;
c. 10% of after tax income has been allocated to a statutory common welfare fund, which is established for the purpose of providing employee facilities and other collective benefits to the company’s employees; and
d. Allocations have been made to the discretionary surplus reserve, if such a reserve is approved at the meeting of the equity owners.
2) Currency Conversion . The Chinese Yuan (Renminbi) is not freely convertible into Dollars. The State Administration of Foreign Exchange (“SAFE”) administers foreign exchange dealings and requires that they be conducted though designated financial institutions. Foreign Investment Enterprises, such as Harbin ZQPT and Wuxi ZQ, may purchase foreign currency from designated financial institutions in connection with current account transactions, including profit repatriation.
These factors will limit the amount of funds that we can transfer from our Chinese subsidiaries to our U.S. parent company and may delay any such transfer. In addition, upon repatriation of earnings of our Chinese subsidiaries to the United States, those earnings may become subject to United States federal and state income taxes. We have not accrued any U.S. federal or state tax liability on the undistributed earnings of our foreign subsidiaries because those funds are intended to be indefinitely reinvested in our international operations. Accordingly, taxes imposed upon repatriation of those earnings to the U.S. may reduce the net worth of the Company.
Very good new article just came out on ABAT!!!!!
http://seekingalpha.com/article/288279-advanced-battery-technologies-solid-revenue-growth-and-awesome-net-income?source=email_global_markets
Looking at the BDI has me thinking it may be time to buy here. But I have not kept up. Looks like the last 10-Q has book value at 1.6 billion dollars and less than 90 million shares, for a book value per share of nearly $20/share?
Is that right? Am I missing the land mine (other than recent losses on the quarter), And selling for less than $2/share!
If the markets rally, this could be good for a real nice bounce short term.
May be time to buy this one back. BDI has been moving up while the market crashed. DIVERGENCE!!!! Friday Capex was up 10%
Even the waste water div is loosing money due to excessive overhead costs. I have a run a one man waste water business for over 20 years now, and made more money my first year than they have. The one man heading up their waste water division has not even justified his own paycheck yet, and he has only closed one deal that I know of since he was brought on board over 18 months ago.
I suspect there are multiple deals on the table being negotiated, but some may not be attractive enough under the current climate, and I agree, the bean counters, and attorneys can make a turtle look slow!!!!
From the recent posts here, I think a few are either shorting the stock, or selling large enough holdings, in the hopes to buy cheaper in the future. It is looking right now like it might go even lower short term, unless the world markets rally soon (today is OPEX!!!).
I am not selling here, but I am preparing for another 50% hair cut IF and when it comes, to really stock up on this one and the merger partner AEXP, as I have no doubt a deal is coming that will send it back to at least $1/share under the worst financing circumstances, but it may be a little while longer before the news of the final solution to the funding problem happens.
I had high hopes we would be off and running and fracing the well by now, with funding by now, but it seems like funding at this stage is just going to take a little more time to work out all the details, and do it right.
There is no way to know for sure where and when the exact bottom will be. But I do know it is very easy to miss the bottom, and it is possible we already bottomed. I also know that MM's rarely let us buy shares at the exact bottom, especially when the volume gets thin, and the spread gets wide.
Sooner or later the right deal and money will show up and this will go into production. In the mean time, shorts may talk nervous investors into bailing at the wrong time, and we may see lower prices. But I am not going to bank on it. I am holding and will add if we make new lows.
I find it very hard to believe they will not get financing. Just look at this:
http://www.mainlandresources.com/index.php?option=com_content&view=article&id=55&Itemid=61
If anything, I think there may be a bidding war under way, too many choices perhaps?
Looks like we are off to the races folks! Already up .10/share!!!
They already have a facility online. I agree on the licensing fee problem, good explanation, and it is a big part of why I finally sold and gave up on them. It was a great idea if they could sell it, large upfront profits, but your analysis is right on, no one is going to risk that much money up front.
I am hoping it is partly OPEX driven. Tomorrow is OPEX! The BDI rally may be seasonal!!!!!
But there are landmines ahead for sure. Elections for one. Liquidity drying up some is a problem. But there is a difference this time, many firms (outside of the BDI, like GE) have piles of cash this time and are not dependent on overnight cash loans like they were in 2008. M&A may take off again in some sectors.
Falling oil may help the shipping sectors, and airlines
BDI is definately showing major strength and not just for a day or two, in spite of all the other bad news. Question now, is the rest of the market testing the bottom and about rally all year, or will the BDI rally be trumped by all the other market wide bad sentiment.
What is even more interesting is that MNLU is much cheaper than AEXP today, on less volume. I have no idea, but I am almost green today, only thing hurting my longs is OPEX stocks like AA, which is getting hammered today. I think the penny stocks bottomed 3 months ago!!!!
There has been no dilution since then.
MNLU payed it off, and did not renew it, as they were swiming in cash at the time. I have no doubt they could borrow from Guggenheim right now, but it is obvious they think they can get better terms.
There has been no change OS shares in about 18 months.
Thanks.
Having read it, now I am wondering why there is not more detail on the debt that was retired with 60 million shares? The 2010 to 2011 debt level in the tables looks nearly unchange, yet 60 million shares are out now? I only see details of retired debt of about $120,000 at most which would only be about 12 million shares at .01 share. Something there does not add up yet.
Aug 11 report? Where?
I think on a normal day this news might have sent us back to test .30/share. The day is not over, if a market rally takes hold we could break out over .20 on this news.
This is major news!!!!!! This patent alone, in China, is worth millions!
LOL, Have not seen that:
"Patience my ass - I'm gonna kill something"
In some time.
I think the selling, or the price drop has just started. Been playing / investing in this one since 2008. We have steady insider selling, and future dilution coming at an unknown price, along with all the other market, economy, and debt worries world wide.
Nice! Thanks for the help!
The sell off here has begun. Only question is where will it bottom. I am holding cash to buy when we get there.
And so the Phoenix rises!!!!
Up 40% at .07, on 290,000 shares!
BOOM!!!
I don't think so. They seem to have insiders (Like Gerry, the new Director, who owns at least 10% of the outstanding shares according to the form 4 he filled when he accepted the Directorship position), that are willing to loan enough money in unsecured notes to MNLU to the pay the important, critical bills. I think the hold up, issue is the big loan for at least 15 million they are trying to float. The last 10-Q showed insiders loaning over $1 million in cash, unsecured, to keep the lights on the last 6 months. That kind of loan by insiders (documented), with out share dilution says all I needed to read and hear!!!!!!
They had used about 8-12 million dollars of the Guggenheim line of credit, and payed off the entire balance when they collected the $28 million from the sale. I forget the exact numbers.
That concurs with my conclusions based on the SEC filings and 2 chats I had with Gerry 4-6 months ago. Frankly I find the delays encouraging, tells me MNLU Execs are holding out for the best deal they can get, and tells me they are not in a panic rush here where they might sell the farm.
The 28 million was first used to pay off the borrowed money from Guggenheim, in full, on the 40 million dollar line of credit. It was about 10 million dollars (+/-) paid on the debt, paid in full, most of the rest, about 14 million went for the well, and some more to the leases.
Those are not exact numbers. They are in the S-4 and 10-Q, and 8-K filings at the SEC.
If this was a typical penny stock, I would think this was an MM raid for cheap shares just before big news was coming out. I have only seen that happen with MVTG once, about 14-18 months ago, but I think that news was partly expected (Korea at the time), not leaked.
FWIW, the CO2 GHG problem has not gone away. I was watching the weather news last night and Houston, Texas has broken not one, but nearly a dozen all time heat records this year, including a 75% reduction in rain fall this year.
So just like the Euro and USA national Debt, The GHG-Global Warming-CO2 problem ain't going away on its own!!!!!
http://www.google.com/search?q=houston+heat+wave+records&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a
The MVTG technology is still sound, economical, revolutionary, and it has international patent protection in process, and 2 very large firms (not to mention 3M), KOSPO and LaFarge all already took notice.....
I agree.
LOL, they do speak English in India do they not?
LOL
Calm before the storm?
Only question I have, is which storm is coming?
Probably a smart trade! GLTA.
Thanks for the info.
People were afraid the markets were crashing again, and some took profits. If tomorrow is an up day market wide it will go higher.
I am referring to the last 2 weeks data on employment and production and inventories. And the news the FED will hold rates at near zero for up 2 more years.....Also the big pull back in oil prices will help retail sales.
Fitch just affirmed US credit rating as AAA!
Look at today's news on industrial production:
Read between the lines here:
Industrial output rises, calms recession fears
REUTERS — 10:28 AM ET 08/16/11
WASHINGTON (Reuters) - Industrial production rose at its quickest pace in seven months in July as motor vehicle output rebounded strongly, further easing fears the economy could slide into recession.
Other data showed residential construction, while still depressed, was not a drag on the economy as the second half of the year got under way.
Industrial output increased 0.9 percent, the Federal Reserve said on Tuesday, after a 0.4 percent gain in June and well above economists' expectations for a 0.5 percent rise.
Manufacturing, which has been the economy's main pillar of support, rose 0.6 percent as motor vehicles production surged 5.2 percent after falling 0.9 percent in June.
"This report suggests that the recovery may have regained some momentum in recent months, and it could go some way in easing fears of a impending recession," said Millan Mulraine, senior macro strategist at TD Securities in New York.
The economy barely grew in the first half of the year, held back by high gasoline prices and supply chain disruptions from Japan in the wake of the March earthquake. The industrial production data indicated the Japan-induced disruptions to manufacturing were fading.
Commerce Department data showed housing starts slipped a less-than-expected 1.5 percent in July to a seasonally adjusted annual rate of 604,000 units as builders broke ground on new multifamily units to meet demand for rental apartments. Economists had expected a 600,000 rate.
However, the housing market recovery continues to be hobbled by an oversupply of previously owned homes.
"Housing starts remain somewhat range bound at historically low levels as homebuilders continue to reduce existing inventories of new single-family properties against a backdrop of elevated foreclosures," said Michael Gapen, an economist at Barclays Capital in New York.
"That said, we look for starts activity to be less of a drag on the recovery going forward."
U.S. financial markets were little moved by the report as investors focused on weak euro zone growth data. Stocks on Wall Street opened lower, while prices for U.S. Treasury debt rose. The dollar firmed against a basket of currencies.
BLOATED INVENTORY
A bloated inventory of unsold homes and a weak economy are weighing down on the housing market, whose collapse was the main catalyst of the 2007-09 recession. A large foreclosure pipeline also is not helping, leaving builders with little incentive to break ground on new projects.
Sentiment among home builders was steady at low levels in August, a survey showed on Monday, but they were pessimistic about sales over the next six months.
But demand for rentals, as Americans shun homeownership because of plummeting home prices and a 9.1 percent jobless rate, is stemming further declines in home construction.
Last month, housing starts for multi-family homes rose 7.8 percent to a 179,000-unit rate, and groundbreaking for projects with five or more units was the highest since January.
Single-family home construction -- which accounts for a large portion of the market -- dropped 4.9 percent to a 425,000-unit pace.
New building permits fell 3.2 percent to a 597,000-unit pace last month. Economists had expected overall building permits in July to fall to a 605,000-unit pace.
Permits were dragged down by a 10.2 percent drop in the multi-family segment. Permits to build single-family homes rose 0.5 percent.
New home completions increased 11.8 percent to 636,000 units in July, the highest since June 2010.
NEW YORK (Reuters) - Home Depot Inc the world's largest home improvement chain, raised its fiscal-year profit forecast for the second time in three months on Tuesday as timely promotions and renewed focus on cheaper products helped it gain market share from rival Lowe's Cos Inc .
The news boosted Home Depot's shares by 2.3 percent to $32.20 and hurt Lowe's shares by 1.6 percent to $19.36 in premarket trading.
Home Depot has been quicker to cut costs than Lowe's and in some cases has benefited as housing markets have improved in regions where it has a heavy presence.HD said it still expects fiscal-year sales to rise 2.5 percent. It forecast earnings of $2.34 a share excluding future stock repurchases, up from a prior forecast of $2.24.
I wonder if the Japan disaster which killed car production till now (lack of parts) hurt battery sales last quarter? If so their could be a large bounce of battery sales this quarter as car production ramps way back up to fill emptied inventories of cars are dealer lots? That would show up in 10-Q data in 3 months.
I see that. May be seasonal, but looks encouraging for now.
You can check the daily BDI here:
http://www.dryships.com/pages/report.asp
Interesting news, and read on Hydrogen that is pertinent to TTEG shareholders:
http://ih.advfn.com/p.php?pid=nmona&article=48847757&symbol=FCEL
All the newest numbers I have seen the last week or two tell me the double dip will be avoided, and that we already bottomed on the market recently. That does not mean we won't retest the lows at about 1120 or so, before year end (maybe in Sept), but I see and read many TEA leave (LOL) signs that indicate the economy is starting to expand again.
We finally have a real winner here folks!!!!
Real profits, real sales, massive increase in both, versus losses in the past. The new production plant is paying off!
http://ih.advfn.com/p.php?pid=nmona&article=48841656&symbol=CGYV