I am not actively trading; holding some stocks that have no value.
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Hi Berge (and $oldier)
The story has been that LFHE would probably be larger than MTRE in time. These guys have a habit of being terribly delayed in doing what they have promised, but they have always come through -- and usually exceeded what was promised. It takes a strong constitution to hold on when nothing is happening - some have capitulated, hence the selling of cheapies for a short time till a seller or two have left and now back to stronger hands waiting.
Marty and company are diligently doing their filings to keep things current - you don't do that when a play is dead. When you can buy a large position in an up-to-date OTCBB company with good potential, I see it is a good opportunity. Therefore, I bought it up when I had the chance to do so.
All JMHO - everyone do their own DD and act accordingly, not just because I did it, please.
NL
Hey $oldier... just ended up over the 5% line today without even intending to, so I did what I ought to do - filed a Schedule 13G. There should be a few others doing the same, I figure. LOL
You saw that, eh Berge? I ended up holding a few more than I planned to today, so now I am filing here also. Oh well... 'twill likely be all for the best. LOL
"dusty as heck..." - I would agree with that
"we were scammed." - I doubt it - your opinion, not mine.
"EOS." - that remains to be seen.
JMHO.
People get tired of waiting and of seeing no return on their dollars... eventually they say that "enough is enough" and they move on to something else, where the grass looks greener.
IMO selling out at these prices is not a winning strategy. Time will tell.
From my own experiecne, whenever I switch lines in the supermarket because mine seems slower, I seldom win - no sooner do I get in the next line and the first line surges ahead while i am left waiting once again.
There is more than just two lines in the same supermarket at stake here. We do have deals with three real companies. We have uplisted to BB and filings are being made - it is all still in place, to the best of my understanding. Just the waiting is what tests patience...
... but I will keep on waiting... patiently.
JMHO.
NorthLion is not selling a share - I have added more since my last filing. Nevertheless, everyone needs to make their own decisions on this stock, just like any other, so no one should base their decision on what I do or don't do. JMHO
NL
LOL Dancy... yup, you can add layers to dress for the cold... not much to do with heat and humidity.
Leo
Income from Operations
Our operating income was $1,433,629 for the three months ended December 31, 2009, an increase of $480,175, or 50.0% as compared to $953,454 for the three months ended December 31, 2008. This increase was primarily a result of the significant increase in gross profit of our main business, partially offset by an increase in general and administrative expenses related to the amortization of the intangible assets acquired in the third and fourth quarters of fiscal 2009.
Government Subsidy
In the three months ended December 31, 2009 we received a subsidy in the amount of $304,704 as compared to a subsidy of $100,833 in the three months ended December 31, 2008. The subsidy is a reward for our “Sanyuan” brand’s selection as a China “Famous Brand”. Our status as a China Famous Brand was determined through a formal process either by the Industrial and Commercial Bureau or by Jurisdiction and based on several factors including the scope, length and records of brand usage.
Recent Developments
During the quarter ended December 31, 2009, we received an aggregate of approximately $14.64 million from the PRC National Development Bank Joint Equity Corporation. $8,451,964 of the net proceeds was used to purchase new production lines. The balance will be used either to pay construction costs relating to our Changxing Island facility or for working capital.
In November 2009, we completed the first phase of the construction of a manufacturing plant in the industrial zone on Changxing Island (“Changxing Island Phase I Construction”), which includes 45,000 square meters of construction space on a 65,000 square meters parcel of land. We began to move our workers and equipment into the new facilities during the quarter ended December 31, 2009, and have commenced operations there. We expect our production capacity could be increased from $30 million per year to $200 million per year in three years. We have obtained land use rights to a land of 85,000 square meters of property for the second phase of construction (“Changxing Island Phase II Construction”). We plan to commence our Changxing Island Project Phase II Construction when our Changxing Island Project Phase I Construction reaches full capacity in approximately three years or when we identify an appropriate strategic partner, whichever comes earlier. The main purpose of Phase II Construction is to expand our production capacity for specialty cable by introducing strategic alliances and integrating technology and industrial resources in order to make Dalian Befut the most competitive specialty cable producer in China and to compete in the international cable market. After the completion of both phases, we expect the Changxing Island plant to occupy 150,000 square meters total, with 87,000 square meters of building construction.
10Q filed on February 12th....
We are creating shareholder value by:
·
Focusing on new, higher-margin products, applications and markets;
·
Investing in infrastructure to expand our manufacturing capacity and strengthening our research and development to deliver high quality, high end products;
·
Improving business processes throughout the Company by focusing on key performance indicators and operational excellence to keep pace with our high rate of growth;
·
Strategically hiring personnel with a wide range of talents to improve the effectiveness of our management processes;
·
Protecting and enhancing our Sanyuan brand; and
·
Clearly communicating with investors in public and private markets.
We also seek opportunities for acquisitions that can expand the overall growth and scope of our business more rapidly.
Highlights for the quarter ended December 31, 2009 include:
·
Basic EPS of $0.03 for the three months ended December 31, 2009.
·
Gross margin increased 331 basis points, from 23.2% of revenue to 26.5% of revenue as compared with the same period in 2008.
·
Generated approximately $1.38 million in cash from our main business operating activities.
·
Successfully obtained a long-term bank loan of $14.6 million for our future business growth.
10Q Filing done today (February 19th)
From the 10Q
During the three months ended December 31, 2009 the Company issued 1,400,000 common shares to consultants for services rendered in fiscal 2010. The value of the shares issued was determined by the estimated value of the services rendered.
7. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS
The Company has contacted New York University School of Dentistry to perform tests of the Company’s personal dental care lozenge product in a double blind study. The estimated total cost of the study is $135,000. The work on the study has not yet commenced.
Results of Operations
Quarter ended December 31, 2009 as compared to quarter ended December 31, 2008
REVENUES
None.
PROFESSIONAL EXPENSES
The Company recognized $56,000 during fiscal 2010 and $176,475 during fiscal 2009 in professional fees.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The Company recognized $1,500 during fiscal 2010 and $64,914 during fiscal 2009 in general and administrative expenses.
PROVISION FOR INCOME TAXES
The Company had no income tax expense, net of valuation allowance on deferred taxes in either 2010 or 2009.
NET LOSS
The Company recognized net losses of $57,500 during the first quarter of fiscal 2010 as compared to $241,388 during the same period last year for an overall increase in net loss of $183,888. The increase in the loss is primarily due to the amortization of prepaid director fees of $27,200 and the issuance of common shares for services of $158,480 in 2009.
TAXES
The Company has not filed and federal, state of local tax returns for five years. The Company expect so file all its delinquent tax returns within the next year. Such returns may be subject to examination for certain years after the filings. The Company does not expect any significant changes from the examinations that would result in a tax benefit or charge.
The Company has net operating loss carryforwards of approximately $738,000 available to offset taxable income through the year 2028.
Just off for a couple of days at a resort.. trying to relax, enjoy the hot tub, etc. Days are getting longer, spring is coming...
Morning $oldier and Berge....
Hey Chevy... this piggy is done adding LFHE now so I won't be competing with you for these cheapies anymore.
Morning $oldier and all MTRE'ers.
Soros... you are still "building sand castles" on the sea coast. They just look pretty for a few minutes until the next wave comes in and washes them away....
We both know a good thing when we see it! I am happy for you to get lots, but I was also happy to take any discarded shares by those who didn't want them anymore -- it's all about accommodating other's wishes, you know!! LOL
was that from one piggy to another? lol
I got the .02's in Nov and Dec... I was getting shares even if the transactions didn't show officially - probably was MM's clearing out accounts - the quantities weren't large back then, but I took whatever I could get!! lol
What the filing today confirms is that everything is still fully on track... it takes lawyers and accountants time to process everything fully - I have a feeling that we are getting close to the finish line. ("close" is a relative term - it might be days, might be weeks, maybe even a few months - matters not to me - I have waited patiently this long and am not leaving now! lol)
JMHO
hi Berge.. looks like a nice MTRE day today!
hi Super Squirrel... I have been adding LFHE for awhile -- got a bunch at .02 initially, now at .04 - suits me fine. LOL
lol... ya I know... you can't believe much of what is written on a message board.... at least from some folks
I did, LOL
Cuz there are other buyers, hint hint.
Hi guys...
I get PM's periodically asking whether I still think this is going to work out, whether I still have all my shares, etc. As you can see, I am still long on MTRE - no I don't like that we had delays, but I am a long-term player, not a flipper. I am adding more as I have opportunity. I am figuring that 2010 will be a good year, just like many of you. Caveat emptor - let everyone do what is best for themselves.
Happy New Year to everyone - I wish you all the very best!
Leo aka NorthLion
SuperSquirrel... when you are dealing with layers and accountants, things always take longer than expected.... MTRE has not only been an illustration of that, but an extreme example, IMO. Any projected dates should always be seen as estimates only.
I expect we are still on track for the anticipated outcome. Holding all and may be adding next week.
NL
Good morning Bee, $oldier, Dancy, Chevy and all MTRE'ers.
Wishing you all the best of the Season, and great things for 2010!
Merry Christmas!
NorthLion
Top of the morning to you $oldier!
JingleBee... tis the season for skiing, and such! But there you are, living amongst the alligator ponds.... on the other hand, there you are basking in the Florida sunshine while we are freezing our butts off! LOL
Check your email.
NL
Hi SuperSquirrel... waiting patiently. Note from the last PR that the plan was to complete the financing this year so that the acquisitions can close in the months following (so that pushes that into 2010). Last I heard there were some accounting items needing to be completed so that all the i's are properly dotted and t's crossed, to the satisfaction of all parties involved.
Not selling any....
NL
BEE!!! Very good to hear from you! We thought you got kidnapped up there in Connecticut or something!
NL
PKG see TAKI's post Nbr 51885 on Nov 30th. (Reposted below)
______________________________________________________
ALERT.HERE YOU GO.JDB REPLIED TO MY E-MAIL.READ BOLD.WOW.CALL TO VERIFY E-MAIL.UNBELIEVABLE.NOT A SINGLE SHARE SOLD SINCE INSEPTION.WOW
From:
JD Brown <jdbrown@dddisplays.com>
Taki,
No insider has sold any shares, or removed any restriction from any share or certificate since inception. Period. No officer including myself, or Glenn Harrs has ever sold any shares, or removed any restrictive legends to do so since inception. Karl M, a long time shareholder, has never sold a single share, nor has he removed any restriction from any share or certificate since inception. Period.
I'm getting bombed with emails, and calls, sorry for the delay.
Respectfully JD
-----Original Message-----
From: tsagos@aol.com [mailto:tsagos@aol.com]
Sent: Saturday, November 28, 2009 1:33 PM
To: jdbrown@dddisplays.com
Subject: JIM CLARIFY HERE.WHICH ON IS CORRECT??HAS ANY INSIDER SOLD SHARES?
Posted by: fivestar Date: Saturday, November 28, 2009 4:17:59 PM
In reply to: fivestar who wrote msg# 51753 Post # of 51755 [Send a link via email] [Share on Facebook] [Tweet this post]
until it's proven different, I will assume a good part of the insider holdings (325m as once reported) were sold during the last spike to .038.. I would love nothing more to be wrong, but until then, that will remain my assumption..
Posted by: TAKI Date: Saturday, November 28, 2009 4:27:39 PM
In reply to: fivestar who wrote msg# 51754 Post # of 51755 [Send a link via email] [Share on Facebook] [Tweet this post]
PER CEO JDB=NO INSIDER HAS A SOLD A SINGLE SHARE,AND DO NOT PLAN TO SELL A SINGLE SHARE FOR AT THE LEAST TWO YEARS.IF YOU THINK OTHER WISE,THEN JDB IS A LIAR IN YOUR BOOK.
Respond | No replies
Gambler... thanks for the listing of shareholders.... very interesting!! I would say that your share counts may even be too low on some in the first listing of Shareholders A, B, C, etc.
You estimated a float of 98 million. I suspect it may be closer to 50 million based on the numbers you have given. That is a very tight float, and PPS could change very quickly.
While there seems to be discontent by some with the idea of the spin-off, it will happen, and the prospects for Etc. are looking very good. Anyone wanting to be a part of that action from the ground floor up can get in only one way -- through ownership of EXPH shares prior to the spin-off. Those that understand the opportunity that is up ahead, just around the bend, are taking advantage of very low share prices right now to establish a stronger position -- and in so doing will end up holding shares in TWO well-positioned companies!
JMHO.
NL
Posts not pertinent will be removed. Personal messages to other posters should be sent by PM or email.
NL
Thank you dapperphil (as well as Thurston and others) for your reports on the shareholders meeting. I could not attend, like many others, so your feedback is much appreciated.
I continue to be supportive of the Etc. spin-off, especially now that we know that the Authorized Share count of Etc. has been kept low, and since we have found out today that the extra shares (above the approx 99 million that initially go to existing EXPH shareholders) will be used to cover the transfer of assets from EXPH. Thus, pretty well of the AS will be used up right at the outset. This also supports what I wrote awhile ago - this is a well-thought through plan.
Also, with only 5% of the EXPH assets expected to transfer to Etc., we see that there will not be a "stripping of EXPH" taking place, as has been insinuated by others over the past few weeks. It has also been said that EXPH shareholders will be losing big value when Etc. is spun-off -- I fully disagree, because whatever percentage of EXPH that a shareholder has immediately before the spin-off is the same percentage he/she will have of Etc. So whether you have 2.2% of one company (EXPH alone) or you have 2.2% of two companies (2.2% of EXPH plus 2.2% of Etc.) -- you still have 2.2% of the whole picture, even though it is then structured in two separate entities. There is no loss of value at all. The only downside (to some who would choose to see it that way) is that Etc. shares will not be as easily trade-able for some time -- for myself, that is not an issue as I want to hold them until they grow in value anyway.
I applaud JD for having the foresight to make structural changes now for the long-term betterment of all shareholders (and we are on an even playing field since JD and insiders own common shares, just as we do). I trust that he is working for the benefit of himself as well as all other shareholders. [There seems to be a number amongst us who think otherwise, insinuating that JD is a liar, and much worse -- not only do I find such accusations disgusting and unwarranted, I cannot understand why anyone who feels that way would even still be here; sell out and invest in another stock you can better believe in then!].
I am pleased that JD did not set up Etc. with a huge AS; there will be pretty well no shares available for dilution after the spin-off and transfer of assets from EXPH. This shows integrity and confidence, IMO.
I believe JD, Glenn Harrs and management are doing their utmost to build EXPH and Etc. They have come through very tough times, and the economic situation in the US is far from resolved yet. They are working for the benefit of not only themselves, but for the benefit of us all as they build these businesses. The lack of understanding of this point and the lack of appreciation for their efforts that is so often displayed in posts on this forum is disturbing to me. JD and staff are working day after day to build value, out of which we will be rewarded. It takes time to accomplish this. I am happy to wait for the results as I believe they will be positive.
Warren Buffett said: "The Stock Market is designed to transfer money from the Active to the Patient." I think EXPH and Etc. will demonstrate how true this is over the next couple of years.
I have been buying and holding shares of EXPH since June 2008. I was initially doubtful about taking a position in EXPH back then, but my confidence in JD and the future of these companies has grown strongly. I have added many more shares over the past month since the spin-off was announced as I want to maximize the part I will have in Etc. as well as in the future of both companies. The "fire sale" share pricing we saw in the late afternoon Wednesday may give others an incredible opportunity to do the same, IMO, as the fearful exit and believers stay.
I have no complaints and look forward to the ongoing development of the business plan JD and his people are pursuing.
All is JMHO.
NorthLion
Some recent filings:
10K - for fiscal year ended June 30, 2009 - http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6834838
10Q - for quarter ended Sept 30, 2009 - http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6895634
The Company is profitable - even more profitable than the financials show at first glance. A major part of the Operating Expenses was amortization of intangible assets transferred in from a related party, as described (taken from the 10-K):
Intangible Assets
In the third quarter of 2009, we recorded a patent named Intelligent Reactive Power Compensation for Automatic Screen at a value of $6,255,528. This utility model adopts non-contact controlling from reactive controller to capacitor switching and therefore it prolongs the useful life of equipment. We started amortizing this intangible asset over its estimated useful life of ten years using straight-line method from April 2009.
In the fourth fiscal quarter of 2009, we recorded another patent named Automatic Environmental Protection MH-Ni DC Battery Panel at a value of $5,282,878. This utility model has two chargers running side by side extending current, strengthening the safety of charge power supply. We started amortizing this intangible asset over its estimated useful life of ten years using straight-line method from May 2009.
Both patents referenced above were originally owned by three parties including Dalian Befut. Dalian Befut purchased the portion owned by the other two parties. To one of the other two parties, Dalian Befut paid cash of $155,356 plus 51% ownership of Dalian Befut at a market value of $11,383,050 based on an independent appraisal. The other party assigned his portion to Dalian Befut for no consideration. Subsequent to the acquisition, the CEO Mr. Hong Bo Cao and another shareholder Mr. Ting Ming Li purchased the 51% ownership back personally from this third party.
We also recorded a well-known trademark, the one we described under Item 1 Business/Intellectual Property/Trademark section of this report, at a value of $83,505, the amount of money we spent in registering with a governmental agency.
Total amortization expenses for the intangible assets for the fiscal year ended June 30, 2009 was $291,520.
It was said that the delays on this stock have been on account of priority being given to MTRE and LFHE. Those two plays have encountered delay after delay themselves, so we wait awhile longer to see what may come here -- maybe sometime in 2010.
NL
4K9P... I have open orders to buy EXPH at prices above .007 and was just bypassed by someone buying at .007. What is your email address and I will send you the details. Thanks. You can email me at lion@ldj.net
NL
My view of the EXPH Spin-off to Create a Separate Company
The proposed spin-off announced this week is creating a lot of misconceptions and confusion, as evidenced by the posts on the board over the past few days. I am giving my view of it below. It is my own opinion only, but I am posting it in hopes it may help others in evaluating the proposed change.
1. Currently we have EXPH with its shareholders. Let’s use a simplified structure to make it easier to follow:
Insiders 325,000,000
Friends and Longs 500,000,000 (estimate)
Other shareholders 167,131,500
Total 992,131,500 shares
Let’s say that EXPH has real assets of about $2,500,000, which would be quite likely based on the June 30th statement with adjustments for higher receivables, and taking into account that the equipment is likely worth more than the depreciated book value. [Although this would give an asset value per share of about .0025, the company should have a higher market value due to its ability to make money and prospects for growth, so the share price should reflect that, and it does – it is around .008 these days – probably not too far out of line, IMO, until we get the better production numbers and are able to show profitability. Nevertheless, for this illustration, I want to deal with asset values.]
2. Now a new company is created, which we will call Etc. Company. At the beginning it starts with no assets, and shares are issued to the EXPH shareholders without cost (which means that no money comes into Etc. Company for the shares either). So Etc. now has:
Insiders 32,500,000
Friends and Longs 50,000,000 (estimate)
Other shareholders 16,713,500
Total 99,213,150 shares
Etc. Company starts with no cash, no assets; it is starting from scratch.
3. Next, some assets are moved from EXPH to Etc. Company to get things started in the new company. When the assets move out of EXPH, there should be a Note Receivable created on the EXPH books for the asset values as they transfer, so the net assets of EXPH should stay the same – some cash, office equipment, warehouse equipment, perhaps vehicles are exchanged for a Note Receivable. (I would expect the manufacturing equipment to stay in EXPH as it will retain the manufacturing side of things). Let’s say that $1,000,000 of hard assets move from EXPH to Etc. Company. EXPH now should have a note receivable for $1,000,000 from Etc. Company. The value of the assets at EXPH hasn’t changed – just the form of them has changed. We would also own shares of Etc. Company which would then have assets of $1,000,000, but it also has a Note Payable to EXPH of $1,000,000 so there is no real value for shareholders there until it actually starts to produce income and profit.
4. Next, Etc. starts operations. It develops sales and contracts the manufacture of product out to EXPH’s D&D Displays division. As funds come in from customers, Etc. Company pays EXPH for the manufacturing it did, and retains a bit of profit margin for itself. As the Etc. product lines grow, the revenues and gross margin should also grow, and in time (probably a couple of years at least), a profitable bottom line may develop. Out of its earnings, Etc. Company will make payments to EXPH to pay down the Note Receivable created from the assets transfer discussed above in point 3.
5. Meanwhile, the existing display manufacturing business that was already in place at EXPH with the major companies (Lowe’s, Stanley, Food Lion, etc). is likely to continue on and to grow – I am expecting that it would stay under EXPH.. Thus, EXPH would continue to grow the previously existing business, PLUS have the manufacturing it will do for Etc. Company, and Etc. Company will get established and grow as well.
6. As shareholders, whatever percentage we may have of EXPH, is the same percentage we would have of Etc. Company. So whether the revenues and profit were left all together in one company or whether split into two, as long as one holds their shares, they will have the same percentage of the whole picture – it’s like two pockets on the same pair of pants – its doesn’t matter whether the money is in one pocket or the other, as long as we own the same percentage of both pockets. [This statement will be true as long as the share structures of the two companies are maintained. For example, if Etc. Company issued additional shares to raise capital, our percentage of that company would be reduced. However, I am not concerned about it – the shares were free so whatever comes from them is gravy, IMO.]
7. Note, though that there are now two separate companies. EXPH is public, trading OTC on Pink Sheets. However, Etc. Company starts off private until it gets established. After a couple of years goes by and it develops its financial base and hopefully some profit, it then can look into becoming a public company. I do not think that JD would choose to go public on Pink Sheets with Etc. Company. He has stated that he will run with fully audited financials for the new company. This higher level of reporting costs more than what is required for an OTC company. To me, it says that the plan would be to go public on a higher exchange when ready – perhaps AMEX. Going to a higher-level exchange with Etc. Company could not happen immediately, so that is why I think he is starting as a private company first – that gives time and space to develop to a point where it would qualify.
Therefore, I am not seeing negatives in this week’s move to create a separate company. I am seeing it is a very well thought-out move which will help pave the way for strategic growth and to move to a higher exchange.
JMHO.