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Welcome to the Investor's Hub Dynamic Response Group board. I was especially glad to see your post on RB where you mentioned that you were one of the early investors who provided capital to get DRG's feet off the ground. If everything works out well for DRG's future we will all owe you and other early investors who provided operating capital a substantial amount of gratitude (I was going to say debt--but it was too punny).
In anticipation of good things down the road...."THANKS!".
If you want to see what I've posted about the company just click on my name above...and then look for the posts I've made on the DRG board ...most are in capital letters. Some are past the first 50 messages. I will probably repost these one of these days.
Also, if you select "Mailbox" from the menue above, you will see that sent you a "Private Message" as well.
Regards,
Randy
The Light has come into the world, but men have preferred darkness. Want an eye-opener? Check out http://www.thetruthproject.org
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Just reading through the 10Q.
Items that caught my attention:
1. Cash position has increased from nil to $746,269
2. Outstanding Shares 86 Million up from 81 million as of December 31, 2008 Authorized 150 Million. Looks like there are presently no Preferred shares outstanding.
3. Recent Private Placements done at 30 cents per share
"During June 2008, the Company issued 2,766,668 shares of common stock in connection with a private placement of investment units to five accredited investors. Investment units were priced at $0.30 each (total proceeds - $830,000)...." PP came with warrants exercisable at 70 cents and $2.00 per share. If all warrants are exercised, buyers will be entitled to a prorated 2% of the net production from the wells in the Cooper and Barrow concessions. Intriguing.
4. CEO, Management and Board of Directors and a shareholder have advanced the company $1,626,936 non-interest bearing payable on demand advances to the company.
Sounds like they're not too worried the company will be going out of business any time soon.
Well, in spite of the debate going on here....I just noticed GXPI is being bid up a bit in pre-market.
Bid .025 Ask .03
It will be interesting to see why.
RK
RB Post. Answered question about whether a reverse split will be necessary to raise stock price as JR Budke earlier suggested. (It should be noted that since that update that suggested this, he has put out another update that did not speak of a reverse.)
My Answer:
I think this comment from JR was born of frustration....which I think many of us have also felt. How can this stock continue to trade at such low levels? Full disclosure is going to be necessary for this stock to trade higher. Hopefully, the delayed quarterly filing will disclose some additional information.
The obvious truth is that someone has been selling a boatload of shares. Could it be some offshore entity with a vendetta against DRGP? I suppose, but it seems much more likely that someone has been a selling a lot of shares. These sort of records are available to DRG management and so far they've been unwilling or perhaps unable to explain it. Hopefully, once it is done they will be able to comment or explain in one of their quarterly reports.
I've heard people claim that DRGP is the most undervalued stock on the market. I don't know that this is absolutely the case, but I am sure that it is one of the most undervalued. Why do I believe this?
1. DRG has generated $32 Million in gross revenues in the last 4 quarters. If our third and forth quarters grow as much we could end 2008 with $50 million in revenue or more.
2. DRG has grown these revenues at an astounding rate....often at a rate of 80% to 100% per year. If this was easy more companies would do it. We have some people with real talent working for us. It's just a matter of time before Wall Street sees this too.
3. Company has 90.5 Million shares outstanding and at 2.7 cents a share that gives us a market cap of $2.44 Million. At a run rate of what will soon be a Million dollars a week, that means that in just two to three weeks we are generating as much revenue as our market cap. That should not be. I think in time our market cap should be equal to a metric of one or two times our revenue. That would come to $.50 to $1.00 per share. Run those numbers.
4. Some people have pointed at the debt as being the really bad part about their balance sheet and financials. The $2.4 Million in debt is convertible debt....but is convertible at an average rate of 60 cents per share. Converting the debt to shares at 60 cents per share would be a great exchange for shareholders like us.
5. In Q1 2008 DRG turned a net profit of $181,000. While this is not huge, it does indicate that the business model is working. Who knows what Q2 2008 will be? Profit, loss? As we didn't start new products, I'm thinking we will see a net profit, but right now nothing will surprise me. I don't think the future of the company hinges on it being a profitable quarter, but from the investing public's perspectvie I think it is pretty important.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
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PSTI may have some good technology or not....but for now it's pretty much a trader. Company is developmental stage company and trades like it.
High today $1.05. Hope you took your profits and ran!!
RK
LINKS TO OLD WEBSITE. I EXPECT THE NEW WEBSITE WILL BE BETTER....BUT UNTIL WE GET THAT HERE IS A LINK TO THE OLD ONE THAT AT LEAST PROVIDES SOME ADDITIONAL INFORMATION.
ABOUT DYNAMIC RESPONSE GROUP
http://www.dynamicresponsegroup.com/about.html
EXECUTIVE PROFILES
http://www.dynamicresponsegroup.com/executiveprofiles.html
SUBMIT A PRODUCT FOR CONSIDERATION
http://www.dynamicresponsegroup.com/submit.html
WEll, isn't this typical...with a bit of patience I could have bought more shares at a lower price. Grr. :)
Randy
HENC File NT 10Q. Which means they will be filing their Quarterly Report late...hopefully within the next 5 days.
http://www.sec.gov/Archives/edgar/data/1324736/000100487808000208/june0812b25aug08.txt
Which part....about not listening to me or the stock trading flat for a time? :)
Thanks IACPA! I figured the 10Q would either be filed late today or else we'd see the notification filing for an extension.
This is the first time since they've become fully reporting that they've had to file for an extension.
I called the office today and was told that Melissa would be out of the office till tomorrow. My guess is she was that she was still crunching numbers with the auditors.
I guess now we wait a little while longer.
Regards,
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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Still Waiting for DRG's Second Quarter Report
I have to scoot...so someone else can keep their eye open for it.
Somethign should be filed by 5:00 Eastern time....if nothing else a request for an extension.
Later dudes.
Randy
Agreed. However, one of my mantras is "Smart Money Will Find the Value."
If it becomes undoubtedly clear to the market that Andrea electronics is going to succeed and that there money is to be made by buying the stock....buyers have a way of showing up.
It's during that developmental stage or time of questionable profitability and financing that holds little stocks like this down. I've not done a lot of Due Diligance on this one, but remember taking a look at it a while back.
Regards,
Randy
Hey G_money. I think the stock will eventually head higher. My concern is the as the story becomes old news...the momo players will grab their profits and the price could easily go flat for a while.
But don't ncessarily listen to me cause I sold too early. :)
Randy
Yeah...one wonders about the broad range of uses and posibilities. Gaining traction is really going to be the key issue.
I think there remains as much potential as ever out there....but execution and realization of it is the key.
Regards,
Randy
I was fairly surprised by the robust growth and income. Might be a bounce here the next while if investors/market once again regains confidence in China Clean Energy future.
Randy
News Out!! China Clean Energy Announces Second Quarter 2008 Results
Thursday August 14, 8:00 am ET
-- Revenue up 22.5% from first quarter 2008
-- Net Income up 240.5% from first quarter 2008
http://biz.yahoo.com/prnews/080814/cnth026.html?.v=25
FUQING CITY, China, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY - News; 'China Clean Energy', the 'Company'), a leading producer of environmentally friendly specialty chemical products made from renewable resources in The People's Republic of China ('PRC'), today reported financial results for the second quarter ended on June 30, 2008.
Second Quarter 2008 Highlights
-- Revenue was $ 5.48 million, up 22.3% sequentially, and 4.3% from the
second quarter of 2007
-- Gross profits was $ 1.36 million, up 30.2% sequentially, and down 5.0%
from the second quarter of 2007
-- Operating income totaled $744,802, up 139.0% sequentially, and down
9.0% from the second quarter of 2007
-- Net income was $557,690 up 240.5% sequentially, and down 29.7% from the
second quarter of 2007
-- Earnings per share was $0.02 in the second quarter 2008, down from
$0.04 in the second quarter of 2007
'We are very pleased with our results this quarter as we shifted our focus to our specialty chemicals business segment, increased revenue and improved our profitability significantly on a sequential basis to mitigate the loss of our biodiesel revenue following our decision to temporarily halt our biodiesel production in the first quarter of 2008,' said Mr. Tai-ming Ou, Chairman and CEO of China Clean Energy. 'We are also very excited with the recent expansion of our high-purity dimer-acid capacity which we believe will allow us to produce higher value added high-performance hot-melt adhesive positioning us well to continue to grow our revenue and expand our margins as we enter the second half of 2008.'
Second Quarter 2008 Results
Revenue for the second quarter was $5.48 million, an increase of 22.3% from the first quarter of 2008 and 4.3% compared to the same period of last year. Revenue from the specialty chemicals segment represented 100% of total revenue, up from 88% in the first quarter of 2008 and from approximately 76% in the second quarter of 2007. The Company shipped 3,000 tons of specialty chemicals (including dimer acid, printing inks, polyamide resins, hot melt adhesives, plant asphalt). Exports accounted for 20.8% of the Company's specialty chemical shipments and 26% revenues.
Gross profit for the second quarter 2008 was $1.36 million, up 30.2% from the first quarter of 2008 and down 5% from $1.43 million recorded in the second quarter of 2007. Gross margin for the second quarter of 2008 was 24.8%, up from 23.3% in the first quarter of 2008 and down from 27.2% in the second quarter of 2007. The decrease in gross profit and gross margin from the comparable last year was mainly due to the increase in cost of raw materials, and the sequential improvement resulted from the Company's shift in focus to higher value unregulated specialty chemical products.
Operating expenses came in at $613,651 for the second quarter of 2008, a 0.3% increase from $611,802 recorded in the second quarter of 2007. The Company's operating income was $744,802 with operating margin coming in at 13.6% for the second quarter of 2008 compared with approximately $311,686 and 7.0% in the first quarter of 2008 and $818,516 and 15.6% in second quarter of 2007, respectively.
Net income for the second quarter ended 2008 was $557,690 or $0.02 per basic and diluted earnings per share, versus net income of $163,783, or $0.01 per basic and diluted earnings per share in the first quarter of 2008 and $793,110, or $0.04 per share on both basic and diluted basis for the second quarter of 2007.
Six Months 2008 Results
For the six months ended June 30, 2008, net revenue was $9.95 million, up 5.9% from $9.4 million in the comparable period of 2007. Gross profit for the six months ended June 30, 2008 was $2.4 million, a decrease of 7.5% from $2.6 million in the comparable period of 2007. The decrease was attributed to a significant increase in feedstock prices and a decrease in Chinese government export tax rebates from 13% to 5% effective on July 1, 2007. Gross margin decreased to 24.1% in the six months ended June 30, 2008 from 27.5% in the six months ended June 30, 2007. Operating income for the six months ended June 30, 2008 was $1.1 million, down 15.0% from $1.2 million in the comparable period in 2007. Operating margin was 10.6% for the six months ended June 30, 2008 compared to 13.2% in the comparable period in 2007. Net Income for the six months ended June 30, 2008 was $749,227, a decrease of 37.2% from $1.2 million in the comparable period in 2007. Basic and diluted earnings per share were $0.03 for the six months ended in June 30, 2008 compared to $0.06 for six months ended in June 30, 2007.
Financial Condition
At June 30, 2008, China Clean Energy had $7.4 million in total cash and approximately $12.7 million in working capital, and $0.14 million in debt. Cash flow from operations for the six months ended June 30, 2008 totaled $165,964, down from $0.5 million in the comparable period in 2007. Capital expenditures totaled $6.8 million in the six months ended June 30, 2008. Shareholders' equity was $31.5 million, compared to $14.8 million at the end of 2007.
Business Outlook
The Company continues to evaluate the biodiesel market opportunity and hopes in the future to be able to re-start its biodiesel production. At this time, waste vegetable oil feedstock prices remain high at RMB 5,000 while diesel prices which are set by the Chinese government remain at RMB 7,300 making biodiesel production unattractive. In the near term however, the Company believes the recent expansion of its high-purity dimer-acid capacity to 3,000 tons per year will allow it to expand its sales of high-performance hot-melt adhesives. The company expects to reach 100% capacity in its high-purity dimer-acid facility by first half of 2009, allowing it to increase shipments of high-performance hot-melt adhesives significantly from current levels. The Company estimates that the high performance hot melt adhesives market opportunity in China is in excess of 30,000 tons per year, with most of it currently source by imports at prices close to $7,000 per ton.
'We are very pleased with the speed with which we have re-directed our focus and efforts to grow our specialty chemical segment and restore our margins and we have renewed confidence in our ability to execute our business plan to maintain strong financial performance in the quarters ahead. We also expect to grow revenues by 5-10% in 2008 compared to 2007,' said Mr. Tai-Ming Ou.
As was previously disclosed, China Clean Energy's new plant in Jiangyin industrial park will be able to produce either 100,000 tons of biodiesel or 100,000 tons of specialty chemicals or a combination of both. The Company believes that its ability to switch between biodiesel and specialty chemical production to take advantage of prevailing market conditions is a key strength of its business model, and an important tool for reducing risk and creating value for our shareholders.
Conference Call
China Clean Energy will hold its second quarter conference call for all interested persons at 10:30 a.m. Eastern Time on August 14, 2008 to discuss its results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-481-7939. International callers should dial +1-617-847-8707. When prompted by the operator, mention Conference Passcode 11556070. If you are unable to participate in the call at this time, a replay will be available for fourteen days starting on Thursday, August 14 at 1:00 p.m. Eastern Time. To access the replay, dial 888-286-8010 and International callers should dial 617-801-6888 and enter the passcode 69525203.
This conference call will be broadcast live over the Internet and can be accessed by all interested parties on China Clean Energy's website at http://www.chinacleanenergyinc.com . To listen to the live webcast, please go to China Clean Energy's website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on China Clean Energy's website for 90 days.
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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News Out!! China Clean Energy Announces Second Quarter 2008 Results
Thursday August 14, 8:00 am ET
-- Revenue up 22.5% from first quarter 2008
-- Net Income up 240.5% from first quarter 2008
http://biz.yahoo.com/prnews/080814/cnth026.html?.v=25
FUQING CITY, China, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY - News; ''China Clean Energy'', the ''Company''), a leading producer of environmentally friendly specialty chemical products made from renewable resources in The People's Republic of China (''PRC''), today reported financial results for the second quarter ended on June 30, 2008.
Second Quarter 2008 Highlights
-- Revenue was $ 5.48 million, up 22.3% sequentially, and 4.3% from the
second quarter of 2007
-- Gross profits was $ 1.36 million, up 30.2% sequentially, and down 5.0%
from the second quarter of 2007
-- Operating income totaled $744,802, up 139.0% sequentially, and down
9.0% from the second quarter of 2007
-- Net income was $557,690 up 240.5% sequentially, and down 29.7% from the
second quarter of 2007
-- Earnings per share was $0.02 in the second quarter 2008, down from
$0.04 in the second quarter of 2007
''We are very pleased with our results this quarter as we shifted our focus to our specialty chemicals business segment, increased revenue and improved our profitability significantly on a sequential basis to mitigate the loss of our biodiesel revenue following our decision to temporarily halt our biodiesel production in the first quarter of 2008,'' said Mr. Tai-ming Ou, Chairman and CEO of China Clean Energy. ''We are also very excited with the recent expansion of our high-purity dimer-acid capacity which we believe will allow us to produce higher value added high-performance hot-melt adhesive positioning us well to continue to grow our revenue and expand our margins as we enter the second half of 2008.''
Second Quarter 2008 Results
Revenue for the second quarter was $5.48 million, an increase of 22.3% from the first quarter of 2008 and 4.3% compared to the same period of last year. Revenue from the specialty chemicals segment represented 100% of total revenue, up from 88% in the first quarter of 2008 and from approximately 76% in the second quarter of 2007. The Company shipped 3,000 tons of specialty chemicals (including dimer acid, printing inks, polyamide resins, hot melt adhesives, plant asphalt). Exports accounted for 20.8% of the Company's specialty chemical shipments and 26% revenues.
Gross profit for the second quarter 2008 was $1.36 million, up 30.2% from the first quarter of 2008 and down 5% from $1.43 million recorded in the second quarter of 2007. Gross margin for the second quarter of 2008 was 24.8%, up from 23.3% in the first quarter of 2008 and down from 27.2% in the second quarter of 2007. The decrease in gross profit and gross margin from the comparable last year was mainly due to the increase in cost of raw materials, and the sequential improvement resulted from the Company's shift in focus to higher value unregulated specialty chemical products.
Operating expenses came in at $613,651 for the second quarter of 2008, a 0.3% increase from $611,802 recorded in the second quarter of 2007. The Company's operating income was $744,802 with operating margin coming in at 13.6% for the second quarter of 2008 compared with approximately $311,686 and 7.0% in the first quarter of 2008 and $818,516 and 15.6% in second quarter of 2007, respectively.
Net income for the second quarter ended 2008 was $557,690 or $0.02 per basic and diluted earnings per share, versus net income of $163,783, or $0.01 per basic and diluted earnings per share in the first quarter of 2008 and $793,110, or $0.04 per share on both basic and diluted basis for the second quarter of 2007.
Six Months 2008 Results
For the six months ended June 30, 2008, net revenue was $9.95 million, up 5.9% from $9.4 million in the comparable period of 2007. Gross profit for the six months ended June 30, 2008 was $2.4 million, a decrease of 7.5% from $2.6 million in the comparable period of 2007. The decrease was attributed to a significant increase in feedstock prices and a decrease in Chinese government export tax rebates from 13% to 5% effective on July 1, 2007. Gross margin decreased to 24.1% in the six months ended June 30, 2008 from 27.5% in the six months ended June 30, 2007. Operating income for the six months ended June 30, 2008 was $1.1 million, down 15.0% from $1.2 million in the comparable period in 2007. Operating margin was 10.6% for the six months ended June 30, 2008 compared to 13.2% in the comparable period in 2007. Net Income for the six months ended June 30, 2008 was $749,227, a decrease of 37.2% from $1.2 million in the comparable period in 2007. Basic and diluted earnings per share were $0.03 for the six months ended in June 30, 2008 compared to $0.06 for six months ended in June 30, 2007.
Financial Condition
At June 30, 2008, China Clean Energy had $7.4 million in total cash and approximately $12.7 million in working capital, and $0.14 million in debt. Cash flow from operations for the six months ended June 30, 2008 totaled $165,964, down from $0.5 million in the comparable period in 2007. Capital expenditures totaled $6.8 million in the six months ended June 30, 2008. Shareholders' equity was $31.5 million, compared to $14.8 million at the end of 2007.
Business Outlook
The Company continues to evaluate the biodiesel market opportunity and hopes in the future to be able to re-start its biodiesel production. At this time, waste vegetable oil feedstock prices remain high at RMB 5,000 while diesel prices which are set by the Chinese government remain at RMB 7,300 making biodiesel production unattractive. In the near term however, the Company believes the recent expansion of its high-purity dimer-acid capacity to 3,000 tons per year will allow it to expand its sales of high-performance hot-melt adhesives. The company expects to reach 100% capacity in its high-purity dimer-acid facility by first half of 2009, allowing it to increase shipments of high-performance hot-melt adhesives significantly from current levels. The Company estimates that the high performance hot melt adhesives market opportunity in China is in excess of 30,000 tons per year, with most of it currently source by imports at prices close to $7,000 per ton.
''We are very pleased with the speed with which we have re-directed our focus and efforts to grow our specialty chemical segment and restore our margins and we have renewed confidence in our ability to execute our business plan to maintain strong financial performance in the quarters ahead. We also expect to grow revenues by 5-10% in 2008 compared to 2007,'' said Mr. Tai-Ming Ou.
As was previously disclosed, China Clean Energy's new plant in Jiangyin industrial park will be able to produce either 100,000 tons of biodiesel or 100,000 tons of specialty chemicals or a combination of both. The Company believes that its ability to switch between biodiesel and specialty chemical production to take advantage of prevailing market conditions is a key strength of its business model, and an important tool for reducing risk and creating value for our shareholders.
Conference Call
China Clean Energy will hold its second quarter conference call for all interested persons at 10:30 a.m. Eastern Time on August 14, 2008 to discuss its results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-481-7939. International callers should dial +1-617-847-8707. When prompted by the operator, mention Conference Passcode 11556070. If you are unable to participate in the call at this time, a replay will be available for fourteen days starting on Thursday, August 14 at 1:00 p.m. Eastern Time. To access the replay, dial 888-286-8010 and International callers should dial 617-801-6888 and enter the passcode 69525203.
This conference call will be broadcast live over the Internet and can be accessed by all interested parties on China Clean Energy's website at http://www.chinacleanenergyinc.com . To listen to the live webcast, please go to China Clean Energy's website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on China Clean Energy's website for 90 days.
Well, I checked my daily scans and it appears all is quiet on the DRGP Front. One would think that we are just a day away from Quarterly Financials being released.
Their Second quarter finished on June 30, 2008....so adding the 45 days allowed to complete their audited financials.....remembering that there were 31 days in July....that brings us to August 14 as they day on which we should be hearing something from DRGP.
I was thinking it was going to be tomorrow the 15th, but the requirement is 45 days after the end of the quarter...so we should either see financials today....or a filing for a 5 day extension.
Better go check the filings and wires again.
Here's hoping.
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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News out Zanett Reports 19% Revenue Growth in First Half of 2008
Thursday August 14, 8:00 am ET
GAAP Profitability Continues;
Management Anticipates Double Digit Third Quarter Revenue Growth;
Conference Call Today, August 14, 2008 at 11 am EDT;
http://biz.yahoo.com/bw/080814/20080814005108.html?.v=1
NEW YORK--(BUSINESS WIRE)--Zanett, Inc. (NasdaqCM: ZANE), a leading consulting firm specializing in business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) serving Fortune 500 corporations and mid-market companies, has announced its financial results for Q2 and half-year ended June 30, 2008.
Financial Highlights for second quarter and first six months of 2008 include (all comparisons are for the Commercial Division only, as the Government Division has been sold):
19% revenue growth to $24.2 million in first half 2008, vs. $20.4 million in the first six month of 2007.
13% revenue growth to $11.9 million in Q2 2008, vs. $10.5 million in Q2 2007.
Operating income of $390K in Q2 of 2008, vs. operating loss of $240K in the same period in 2007.
Operating income adjusted for the sale of Government Division reached $1.1 million in first half 2008, compared to an operating loss of $674K in the comparable prior year period.
Cash provided by operating activities in first half 2008 reached $106K, vs. cash used in operating activities of $1.7 million in comparable period of 2007.
$8.2 million in debt repaid in 2008.
Net interest expenses down 38.6% in Q2 2008, vs. comparable period 2007.
GAAP profitability continued into Q2 2008.
Claudio Guazzoni, Chairman and CEO of Zanett, said, “Any way I look at it, these second quarter and first half results are strong; we continue to execute our business plan increasing revenues and profitability. The revenue growth is particularly healthy when you consider the physical state of the US economy, and we now have a situation where Zanett is providing positive cash from operating activities. We continue to target those sectors in the economy which are actually doing well, thus contract signings continue to grow thanks to our highly effective expanded sales force. We anticipate continued success in the second half of 2008. Now that we have achieved GAAP profitability, we are in position to seriously look at a number of acquisition targets to complement our quiver of Oracle products.”
Dennis Harkins, President and CFO of Zanett, said, “We have enhanced our sales capacity and marketing activities during the first half of the year. As a result, our most recent financial results reflect a healthy increase in the number of new customers.”
“We are particularly excited by the opportunities in our Oracle-centric core business and are eager to expand in new areas brought about by Oracle’s recent acquisitions. We are working with our customers to expand how they leverage Oracle’s application and technology solution, always focused on driving profitability growth for the customers.”
Harkins concluded, “Based on our accelerating sales growth, we anticipate third quarter revenues for this year will grow at a double digit pace compared to last year’s third quarter revenue.”
Management of Zanett will host a conference call today at 11 a.m. EDT to discuss the company’s financial results and achievements. Those who wish to participate in the conference call may telephone 888-335-6674 from the U.S. or for international callers, 973-321-1100, conference ID# 59276106, approximately 15 minutes before the call. A digital replay will be available approximately 2 hours after the completion of the call by telephone for two weeks and may be accessed by dialing 800-642-1687, from the U.S., or 706-645-9291, for international callers, conference ID# 59276106.
ZANE to Release Q2 Earnings today...with Conference Call at 11:00 AM EST
http://ih.advfn.com/p.php?pid=nmona&cb=1218714716&article=27668164&symbol=N%5EZANE
I was gone most of the day....but am back now. It seems I sold my options too soon. Grr. :(
I was just about to check out the IBOX to see if you've made any progress.
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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All well and nice. But wouldn't it be great to have some news.
BTW, I bought out the .049's yesterday...I was actually hoping for some 46's...but missed them.
Thanks to whoever gave them up.
Randy
Thanks tothe...I appreciate your taking a look at it....I think the biggest question right now will be how our Second Quarter 10Q looks.
The company has been pretty quiet lately. Fears are that we won't have much if any net profit, but something about the whole set up smells to me like we could see a good report and some action. Here's hoping!!
If nothing else, at least we seem to be finding a pretty solid bottom.
Thanks again.
Randy
OK They are the second largest now...and will be the largest by the end of 2009.
Randy
It is at http://www.veracast.com/webcasts/opco/chinadragon08/17113131.cfm
And I think I added you...though you do have some look a likes.
Randy
If I recall it correctly...they estimate that by the end of 2009 they will be either the biggest jewelry marketer...or the 3rd....I think it's the biggest.
RK
Have you watched the powerpoint presentation from the road show....or whatever forum they were at?
If not you should look for it...Actually, I should post it in the IBOX.
BTW, if you're interested I'd be happy to add you as an assistant.
let me know.
One would think that eventually some mutual funds and institutional investors would be all over this stock.
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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AS IRON SHARPENS IRON http://investorshub.advfn.com/boards/board.aspx?board_id=12482
Wow. I do not question the long term success of FUQI. I think it's one of those investments if you have the capital or the leverage to let time take care of the share value.
As FUQI continues to grow and mature, so will it's stock price.
All the best,
Randy
I do. I think the highest price of the day tomorrow will be 20 minutes into the day...Let's say between 7:45 and 8:00 AM.
But who the heck knows. :) I sold out my options and some shares already....like I've said before...I'm better at holding losing positions than winning.
Regards,
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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Bell. I guess I see where you base your calculation on...but as a previous post pointed out, there are other metrics by which companies are valued.
Let's say DRG carried their good will or intellectual assets on their books at $5 to $10 million. That would right the balance of their negative equity but wouldn't change what the company is and what it has accomplished.
I know you didn't like the rabbit trail or hole ... or maybe that was jimmeknee that said that....but how many bulletin board companies can you find me with the revenues of DRGP.
These are had and fast sales that they have generated. They have acquired or licensed the product, built up an inventory, marketed via short form infomercials and internet and generated a crap load of sales. DRG won't sell products that don't make money. Their gross profit margins are in the neighborhood or 60-80 percent.
So long as they keep rolling these margins into expanded product offerings and new revenues, we might not see huge profits right away...but they are not that far out there.
DRG has made some amazing progress. Will they become a company that uplists to AMEX or NASDAQ? If they keep growing, they will in time. If they've been able to grow revenue in these tough economic times...just imagine how much more there would be if we didn't have that to contend with.
I think you are wise to keep your eye on this one. The tipping point...where there will no longer be any questions about the feasability and eventual success of the company will be out there some where. Will it be a week? A couple months? Six months? Time will tell! I think there will be plenty of money to be made from that point on....but the few of us that made the investment early on will profit more.
AMEN!! At least that's what I thought when I read your post.
Randy
Yeah...in retrospect I should have thrown some more $'s at it. I sold my options at $2.25...only had five. :)
If I had played the longer term...I'd have held on to them.
Randy
Thanks. I'm on the roaad right now...but will reread this later. It looks like good stuff.
Randy
At the rate of growth and earnings....gosh...you would think 15 to 20 times earnings....which would place us in the $15-20 dollar range. ...which is in line for Merriman's report.
I suppose we should discount it for being a chinese company....maybe $12-15 minimum.
regards...
I'll probably loose my August calls today....but I'm tempted t let them exercise....but that's pretty risky too.
randy
Gentlemen...and Ladies.....I'm pretty sure my $7.50 august calls will stay in the money...
Randy
NEWS 7:30 AM More News Second Quarter Results
FUQI International, Inc. Reports Second Quarter 2008 Financial Results
Tuesday August 12, 7:30 am ET
-- 2Q08 Revenues Increased 154% to $66.9 Million --
-- 2Q08 Net Income Increased 253% to $5.3 Million, or $0.25 per Diluted Share --
-- Company Raises Fiscal 2008 Revenue, Net Income and Diluted EPS Forecast -
-- Provides Retail Revenue Forecast for Second Half of 2008 --
http://biz.yahoo.com/prnews/080812/cntu030.html?.v=25
SHENZHEN, China, Aug. 12 /Xinhua-PRNewswire-FirstCall/ -- FUQI International, Inc. (Nasdaq GM: FUQI) today announced financial results for the second quarter ended June 30, 2008.
Revenues for the second quarter of 2008 increased 154% to $66.9 million from $26.3 million in the second quarter of 2007, due to increases in sales volumes and selling prices. A higher inventory level going into the quarter provided existing and potential customers with sufficient comfort to begin increasing the size of orders overall.
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Gross profit in the second quarter of 2008 increased 129% to $7.1 million compared to $3.1 million for the same period in the prior year. This increase in gross profit was primarily attributable to higher selling prices for new jewelry designs, which resulted in increased processing fees on jewelry items delivered during the second quarter.
Gross profit margin for the second quarter was 10.6% in the second quarter of 2008, within the Company's previous 2008 second quarter guidance estimate of 10.5%, and down from 11.6% in the same period of the prior year. This decrease was primarily due to higher raw materials prices, which more than offset the increase in sales. It is important to note that management prepared for fluctuating raw materials prices by entering into futures contracts, which resulted in a below-the-line gain of $721,000 during the quarter.
Operating expenses in the second quarter of 2008 increased to $1.1 million compared to $927,000 in the same period of the prior year. This increase was a result of higher administrative expenses required to support a growing revenue base, higher advertising costs, business taxes, options granted and increased salaries to certain executives, as well as expenses incurred as a result of being a publicly traded company. These expenses were offset by a year-over-year decrease in bad debt expense, as well as the absence of a one-time discretionary bonus of $88,000 that was issued to the Company's CFO in the prior year's period. Operating income for the second quarter increased to $6.0 million from $2.1 million in the second quarter of 2007.
Net Income for the second quarter of 2008 increased 253% to $5.3 million, or $0.25 per diluted share, compared to $1.5 million, or $0.10 per diluted share, in the same period of the prior year. Net margin was 7.9% compared to 5.7% in the prior year period. The increase in net margin was primarily a result of our strong growth in revenue in excess of the increase in our operating expenses. Non-cash items in the second quarter of 2008 included a $149 thousand expense for equity based compensation and a $167 thousand retail barter revenue gain. (Barter exchanges are incurred when retail customers trade-in their jewelry to obtain barter credits that can be used in lieu of cash to buy jewelry products at the Company's retail counters). Second quarter 2008 net income also benefited from a $721 thousand non-operating income derivative gain associated with gold futures the Company purchased to hedge against its inventory position during the quarter.
At the end of the second quarter, the Company had cash of $76.9 million, versus $28.9 million of cash at the end of the first quarter 2008. The primary reasons for the increase in cash were 1) an increase in the operating profits resulting in strong sales during the quarter and 2) the use of existing inventory, which had been built up going into the second quarter in anticipation of strong demand. Total inventory at the end of the second quarter was $35.1 million, down from $64.2 million at the end of the first quarter. Management expects inventory and cash positions to fluctuate from time to time as the Company anticipates periods of high demand and increases of inventory to meet that expected demand.
Mr. Yu Kwai Chong, Chairman of Fuqi International commented, ''We are very pleased with our results for the second quarter, which exceeded our expectations, despite some slowing in the growth rate of the Chinese economy, and the economic impact of the May earthquake in the Sichuan Province. In spite of these issues, we continue to see increasing demand for our products, and larger orders from our existing customers. With our strong capital position, the right mix of products and distribution and a strong management team, Fuqi, along with our recent retail acquisition Temix, is poised to build the leading provider of luxury jewelry products in China.''
2008 Financial Outlook
For the full year 2008, the Company is raising its 2008 revenue, net income and diluted earnings per share estimates. It now expects total revenue of approximately $325 - $333 million. This forecast is comprised of $315.5 - $323 million in expected wholesale revenue and $9.5 - $10 million in expected revenue from retail. The Company also anticipates consolidated net income of $23.7 - $24.3 million, and diluted EPS of $1.07 - $1.09, based on a weighted average share count of 22.2 million shares. In 2008, the Company expects long term wholesale gross margin of 10.5%, with additional gross margin upside as its branded retail business becomes more meaningful to overall sales.
For the third quarter, the Company anticipates total wholesale revenue of approximately $75 - $77 million, which would represent a year-over-year increase of approximately 108% - 114%, respectively. Additionally, the Company expects retail revenue in the third quarter of approximately $3.8 - $4 million. Net income in the third quarter is expected to be in the range of $5.8 - $5.9 million, or $0.26 - $0.27 per diluted share, based on a weighted average share count of 22.1 million shares. Gross margin for the third quarter is expected to be approximately 10.5%, and net margin is expected to be approximately 7.3%.
Mr. Chong continued, ''We remain optimistic about the future growth of Fuqi, as evidenced by our increase in guidance. Our acquisition of Temix is complete and we are anticipating smooth execution of our integration plans. We are well on track to meet our goals for the year of opening or acquiring 60-80 retail counters and 8 to 10 stores. We have been evaluating the marketplace and are excited about the opportunities we see ahead of us, and in fact have already identified other possible locations. Our aggressive growth strategy combined with our strong capital position will allow us to quickly ramp up our retail business, while meeting the demand in our wholesale markets as well. We will continue to manage our balance sheet to be prepared to capitalize on opportunities we see in the marketplace.''
Mr. Chong concluded, ''As a result of the momentum we have built this year in our wholesale business, combined with our growing potential in the retail business, we are very encouraged about our future potential. Our ability to eport strong growth in our second quarter - our seasonally mildest quarter -- while the growth in the Chinese economy slowed a bit and we faced some negative impact from the earthquake is a testament to our ability to grow this business even in relatively challenging quarters. We are excited about the future of our wholesale and retail businesses and look forward to continuing on this growth trajectory to optimize value for our shareholders by making Fuqi the leading wholesale and retail company in our market.''
Conference Call
The Company will conduct a conference call to discuss the second quarter 2008 results today, Tuesday, August 12, 2008 before the market open at 8:00 am ET. Listeners may access the call by dialing #1-913-312-1429. To listen to the live webcast of the event, please go to http://www.viavid.net . A replay of the call will be available through August 20, 2008. Listeners may access the replay by dialing # 719-457-0820; Passcode: 8401949.
About FUQI International, Inc.
Based in Shenzhen, China, FUQI International, Inc. is a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in the large and rapidly expanding Chinese luxury goods market.
News 7:29AM Termex Acquisition Completed
FUQI International Completes Acquisition of Shanghai Tian Mei Jewelry Co. Ltd. and Beijing Yinzhong Tian Mei Jewelry Co., Ltd.
http://biz.yahoo.com/prnews/080812/cntu032.html?.v=16
SHENZHEN, China, Aug. 12 /Xinhua-PRNewswire-FirstCall/ -- FUQI International, Inc. (Nasdaq GM: FUQI) today announced that it has completed the purchase of two jewelry companies, Shanghai Tian Mei Jewelry Co. Ltd. and Beijing Yinzhong Tian Mei Jewelry Co. Ltd., collectively known as Temix ("Temix") on August 7, 2008. FUQI has acquired 100% ownership of Temix an asset purchase transaction.
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Under the terms of the transaction, FUQI paid a total consideration of RMB 135 million (approximately USD$19.7 million, based on a conversion price of USD: RMB 1.00:6.86), with RMB 80 million (approximately USD$11.7 million) consideration to be paid in cash and the remaining consideration to be paid in restricted common stock. The RMB 80 million paid in cash is for the value of the inventory on hand in Temix retail locations. The issuance of FUQI's shares included in the equity portion of the purchase price for Temix is RMB 55 million (approximately USD$8.0 million), or 1,080,666 shares, and one-half of the shares will be placed into escrow and remain subject to the achievement of certain performance targets over the two-year period following closing.
Temix is a 50 outlet branded jewelry store chain with locations principally in Beijing, Shanghai, and Ningbo. Of the 50 outlets, 6 are stand-alone stores and 44 are store counters within department stores. The chain sells primarily diamond jewelry, but also sells karat gold and gemstone jewels, including ruby and jade. For the year ended December 31, 2007, Temix had revenues of approximately USD$12.3 million (unaudited) and the company was profitable. Through the first six months of 2008, Temix had revenues of approximately USD$9.2 million (unaudited) and was profitable.
Temix has been led by Mr. Chujian Huang, who is the founder and CEO of Temix and a 15-year veteran in China's jewelry industry, particularly in the Yangtze Delta region. Upon closing, Mr. Huang became a full-time employee of FUQI, responsible for managing the Temix chain, and reports to Ms. Jianying Li, Director of Retail Operations for FUQI International. Mr. Huang and the core Temix management team agreed to stay with FUQI for at least three years.
Mr. Yu Kwai Chong, Chairman of FUQI International commented, "We are pleased to close this transaction, which strengthens our efforts in China's retail jewelry market. The Temix acquisition is expected to be accretive to our business immediately upon closing and provides us with a strategic opportunity to further diversify our business, improve our margin performance, and expand our market presence. FUQI's strong financial position can strengthen the performance at each Temix outlet by better capitalizing their counters and stores to ensure they have an appropriate level of inventory, a compelling mix of fashionable jewelry designs and strong brand promotion. With this acquisition, we will have a total of 53 outlets, comprised of 47 store counters and 6 retail stores and are well on plan to reach our goal for the full year to open or acquire up to 60 to 80 retail counters and 8 to 10 retail stores.
Additionally, we are pleased to welcome Temix's employees to FUQI International and believe the experience and quality of the company's management team will provide us with additional capabilities to accelerate our penetration of the growing retail jewelry market. This announcement further strengthens our leadership position in the jewelry industry, and we will continue to look for opportunities to build our portfolio and expand our market presence."
Additional information related to this transaction can be found in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 12, 2008.
About FUQI International, Inc.
Based in Shenzhen, China, FUQI International, Inc. is a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in the large and rapidly expanding Chinese luxury goods market. For additional information about the company, please log on to the company's website at http://www.fuqi.com.cn .
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
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Sounds like you've done well. I've semi-jokingly said to a friend lately that think I'm better at holding loosing positions than winning ones.
I think it's all part of understanding the "mystery" of the marketplace. Logic and reason can account for alot...but in the end, it is the market (and sometimes the manipulators) that determine the fluctuations in the market place.
For the individual investor (staring at his computer) there are so many conflicting emotions and thoughts. Maintaining perspective and realistism, while at the same time leaving the door open for long term gains is not easy.
I've heard advice from some guys that should always sell 1/2 you position at a double and then half of that when it doubles again....but having the patience to do that is another thing.
Maybe some of the veterans on this list could share their war stories and for good or ill....or the rules of thumb that they operate with.
Regards,
Randy
The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)
Check out a new Ihub board I've started:
AS IRON SHARPENS IRON http://investorshub.advfn.com/boards/board.aspx?board_id=12482
Very Cool. Congrats on the great pick. From the sidelines it appears to have some pretty good momentum behind it;
Are you still holding or did you already lighten your load?
Hopefully, things will continue making progress for you.
Regards,
Randy