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More toxic financing in sight...
New contract calls for new financing, i wonder how many discounted shares and how many million dollars CXTI is about to give away this time, CXTI signed a contract last thrusday april 30th to post it at the bell the next tuesday morning ? right after restatement introduction ? hey hey, these chineses have learned very fast how to pump and dump, lets see if dumb money will buy and hold the news.
Form 8K 4/4/2006
' ITEM 1.01
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On March 30, 2006, through its wholly-owned subsidiary, Expert Network (Shenzhen) Company Limited, the Company entered into a contract with Shishi City Information Management Co, Ltd. The contract is for planning, feasibility analysis, system design and construction of an e-government system for Shishi City in Fujian Province, PRC.
Under the terms of the contract, the project is scheduled to commence in October, 2006, and to be completed over a three-year period. The total contract price for all phases of the contract is 330,000,000 RMB, or approximately US$41,000,000 based upon current exchange rates.'
typo error...
I meant EPS missing for Q4 2005 in yesterday's 10Q filing.
How disapointing.......
-The late restatement of past filings is like an unsuspected hostile torpedo perforation, bad,bad...bad!
-The 2006 Q1 10Q filing doesn't disclose the EPS for the reported period, odd ? loss?
-'The Company anticipates that the existing cash and cash equivalent on hand, together with the cash flow generated from the existing projects will be sufficient to meet the working capital requirements for the on-going projects and to sustain the business operations for the next twelve months. In the event that the Company signs up new contracts, additional financing may be required but there is no assurance that we will be able to obtain such additional financing, or on acceptable terms to it.'
That sounds like more toxic deals could hit the wire again in the future.
- Total 2005 EPS took a serious shrinkage to $.25 or an average of $.0625 EPS per quarter.
-Statements about the CD and warrants status still shady and confusing.
-The company seems to be set to continue paying the consulting fees and others with stocks, not good at all!
My guess is that a major share price correction is about to start, some investors like me won't trust any word from these clowns anymore, all that confusion just has seriously compromised all the past figures and forecasts regarding CXTI stock performance, the stock should start to behave like most of the wortless pump and dump , nothing really strong insight, very very disapointing, i'm glad to be out at this point, i was expecting a notable change in the company results but what i found yesterday goes far beyond the worst figure i have anticipated, i would wait for a new all time 52 week low to dare thinking about building a new position (investment), till then there's full space for short term buyers and shorters.
All IMHO.
Going nowhere...
Would be time for the CD holders to depress it again and clear out the convertion process once for all , would be a nice opportunity for blockbusters to come in and a strong signal for fundamentalist investor like me to buy back a position, come on clear the path guys! we don't want to hold on toxic shares you know that!
Ruff
I agree with the overall view you described in your last posts regarding the fundamentals of the company, but, no matter how good is the Co or how great are revenues or anything else, the CD's put a shade over CXTI, the stock is under Financiers control for months, you can't predict what they plan or cook for the purpose, SEC filing is the only reliable source where investors can check what's going on.
There's only little room left for d-traders at this point, the volume is so irregular that it makes risky aswell to day trade CXTI, you're never pretty sure to match a bid for a 10 or 15 cents profit per share.
About the short position before the deal , be cautious because these guys are offshore they can go naked anytime while can you check or verify what they cook.
My opinion is that it's a mistake to think fundamentals or to work with stock TA at this point, you have to think about the CD deal to take advantage of the stock, contract news, earnings ect... will just create short time momos and see the PPS homing straight to where it began to take off, good for quick trade$ anyways...
I don't like it, but it's always tought to find out real companies with real earnings or potential over the OTC market place, this is even more disapointing when you hold a real outsider that suddenly makes bad step or bad deal, well that's the way it is and will remain...But CXTI will rock the OTC soon 8-)
Regards.
Ruff conversion isn't cleared yet...
Or gimme the link to the SEC form showing its over.
THE OFFERING
This offering relates to the sale of common stock by certain persons who are the selling stockholders. The selling stockholders consist of:
·
Alpha Capital AG, which may sell up to 2,435,593 of common stock, which includes 251,844 shares of common stock previously issued upon the conversion of convertible debentures, 1,203,357 shares of common stock issuable upon the conversion of the convertible debentures and 980,392 shares issuable upon the exercise of warrants.
·
DKR Soundshore Oasis Holding Fund, Ltd., which may sell up to 5,091,504 of common stock, which includes 724,005 shares of common stock previously issued upon the conversion of convertible debentures, 2,406,714 shares of common stock issuable upon the conversion of the convertible debentures, and 1,960,785 shares issuable upon the exercise of warrants.
·
Ellis International, which may sell up to 1,207,003 of common stock, which includes 115,128 shares of common stock previously issued upon the conversion of convertible debentures, 601,679 shares of common stock issuable upon the conversion of the convertible debentures, and 490,196 shares issuable upon the exercise of warrants.
·
Platinum Partners Advisors, LLC, which may sell up to 1,240,850 of commo n stock, which includes 215,866 shares of common stock previously issued upon the conversion of convertible debentures, 240,671 shares of common stock issuable upon the conversion of the convertible debentures, and 784,313 shares issuable upon the exercise of warrants.
·
Platinum Long Term Growth I, LLC, which may sell up to 6,025,050 of common stock, which includes 1,002,426 shares of common stock previously issued upon the conversion of convertible debentures, 2,767,722 shares of common stock issuable upon the conversion of the convertible debentures, and 2,254,902 shares issuable upon the exercise of warrants.
Some obviously didn't make their DD...
The conversion maximum price is set to $1.80, i don't understand why some are buying now except those making day trades, financiers will kill the price once again and maybe pull it under $1 again,there's no new SEC filing or amendment to the SB2 form saying they changed the terms of the deal, so it's useless to "invest" by now, i sold all my shares by the run and now i stand on the sideline and waiting to see what are financiers cooking for CXTI, the CD is floorless ,so the greater will be the selloff the cheaper will be the share price, maybe it won't happen again but there's no proof saying otherwise...anyways these guy will work it to get the bigger piece of cake.
you're welcome 1point3...
Read this one below it's a good picture of what could happend here again.
http://adserv.stocksite.com/commentary/commentary.asp?article=8
Difficult to predict 1point3...
This looks like a regular correction of the PPS, since a pps of $1.70 was really like a "gift" in regards of the CXTI performance, by the way, like abvt posted earlier on the board, there are some facts that are still weighting on the shoulders of the company , there are 7,220,143 shares left to be converted by the financiers plus the 6,470,588 warrants they could exercize in the coming times, the millions of shares granted to the consultants for compensation to the new contracts awarded to the company, there are also quarterly payments in cash or stocks that the company will have to make under the terms of the agreement until the deadline of the whole CD deal,the security interest in certain of CXTI's assets as collateral for repayment of the debentures plus the right of first refusal to participate in future financings by the company for a period of twelve months following the effective date of the Registration Statement...
You see,so many things that will keep the EPS under pressure for months until the whole deal is history, i don't know if you're asking this to make swing trade but the PPS could continue to climb and maybe get a new 52Wh , but if you're looking for a long position it would be more cautious to stand on the sideline to see how the things discribed above will affect the PPS, things will certainly get better and better as we reach the maturity of the CD deal, if you wanna play the swing be very reactive because the trend can turnaround very fast as some holders will realize that they might be stepping over crude eggs.
Anyways CXTI is facing a quite long period of growth and development, when it gets rid of that weighting situation it will certainly fly to double digit PPS,but not yet,in summary the CD deal was a bad idea, an extension of the current AS could have given the same results, well that's my point of view IMHO.
Good luck .
Told you guys new $35MM contract...
i'm not surprised by the way, heads up!
abh3vt You sound like too "intoxicated" lol,
By these nasty paid crews posting on RB, yes most of the time this kind of CD deal is a clear act of suicide from CEO that use it, but most of the time aswell, this kind of deal is used by worthless struggling companies or scams in conivance with offshore pals, this is why some around are digging the fact that CXTI will spin to death and there's no wayout to escape, if the dealers really wants another killing short trend, they need much more volume coupled with some pretty bad news to achieve, don't ya think.
CXTI is profitable and i believe will remain profitable for several years from now, the chinese EGOV/IT is bullish(15-18%/y) i see no near slowdown to that, China still have many steps to make ahead before reaching occidental level of development, Ecommerce is a master key to own in future's market, China wants its own consumers to connect to the web and buy chinese products, that's clear.
Timing issues isn't so scary to me and Q4 will be green as the coming 10K filing, sure EPS will be affected by the recent deal, anyways the stock is undervalued,we are stuck below of what could be a fair valuation, the Chinese currency is going up and will also help the $EPS, so why panic and drop the bag?
A profitable company has the means to diversify and grow, i doubt that CXTI will just plug some Chinese municipalities to the net and sit there, they will catch all they can, today they've been awarded contracts from several municipalities in China and it makes them busy for years, i wont be surprised if we get PR soon talking about $20-50MM new contract award, just hire the guys and move on, simple in a country full of cheap workers.
So i believe there's no need to worry, in that case the CD dealers as no proof that their new dog is a loser and will just be pretty for an endless spiral to sub territory, they own the unique US-smallcap company able to work a bullish sector in China, would be nice to get on the NAZ and sell'em for $20-40 a share.
To finish i'll tell you that i've been very impressed by the way this company has filed its due SEC forms, all in time, clear and detailed, copies of the signed contracts ect...first i see that from a BB listed company.
Inverted head and shoulders pattern...
If it breaks over the neck line around $2.10 X $2.15 this should resume a strong uptrend to the $3 mark, would be a nice kick off
to begin this promising year, this company needs an upgrade to move off the OTC as soon as possible IMHO.
We got new MM onboard...
UBS securities LCC MMID: UBSS, world first Banking firm dares to play with a smallcap chinese listed company ? must be huge potential hidden somewhere... heads up folk!
And best wishes and happy new year to all!
2005 to 2009 will be the 2nd golden period for information technology in China...
China Computer World Research (CCWR) predicts that the 5 years from 2005 to 2009 will be the second golden period for information technology in China with an 18.5% compounded annual growth rate. The major drivers of growth will be government, enterprise, and individual demand for IT products and services. China's first golden period for information technology came between 1996 and 2000.
http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr125547e.html
CRTC buying all falling ticks at $1.75
ARCA sitting at $2.15 ASK
Can we say a new conversion ongoing there ?
This stock is really a beaten dog, show your fangs CXTI!!
Huge blocks loaded near $1.50
All that BS mic-macs are just CLEARLY TOO OBVIOUS!!
Another thing i suspect...
I feel that there are some chinesemen playing the stock, they might be unexperienced and sheep minded, like playing OTC with emotions only, if i'm right they will soon be out of cash lol!
Well Mike, i've seen OTC stocks well above $100 back in 1999,and some are above the $30 mark nowdays, my point of view is that OTC is the place to make big percentage gain, but in other hand i would say the OTC is a corrupted market, i was very disapointed when the BBX project went to the trashcan , of course if it would have been adopted, 80%+ of the worthless listed companies would have been pushed to the pinks, the SEC should dig more deeper and break through those fraudulent OTC "mic-macs" to regulate this market once for all!
Don't worry about me, i do follow many of chineses stocks on my radar, but as you said earlier, CXTI is by far the most attractive.
Endless MM shaking.
This stock's trends are an endless puzzle, obviously manipulated to grow the fearness of a new sell off, lol, it should be well above $4.00 at the present time, the OTC market is upside down.
A new 4 days cup and handle is drawn, come on CXTI pop up!
9 months $0.33 EPS this could run to $8.00, would be time to run once for all! 8)
CXTI always file a a useless NT-10Q a day before the 10Q filing,
This turns people nervious, and the makes the PPS drop, these chineses should review their way to file the SEC forms lol, good signal for sideliners anyway.
New cup&handle formed...
We'll soon see if it draws a new straight line to the $3+ mark.
https://chart.etrade.com/cgi-bin/rgraph?Symbol=CXTI&e1=0&e2=0&e3=0&i1=MACDHist&i2=Stochastic&i3=Will&i4=Chaikin&olay=Boll20&ci=None&cs=&gr=1&gs=Medium&tic=1-month&rl=1&event=1&int=20&leg=1>yp=Default
They have legal 30 days delay to file the related SEC form to report the status of the agreement...
that's right abh3vt
Nothing alarming, consultant aren't investors, they cash in ASAP for the task they've been charged to complete.
abh3vt
I don't think it is the case here, i believe CD deals have always been associated with worthless struggling companies, shell scams and collapsing PPS, that's why i would say the
traders immediatly initiated a sell off, then we know the pattern > falling dominos 8),
now, at this present point i agree that the CD boys are surely working it to get a maximum of profit return, that's obvious, but a new big boy could come aswell and start a buyout, anything could happen now...
About a better deal, it is difficult to guess why they couldn't find a better financing, there are so many possibilities and potential explanations, i would say big investors don't wanna hear anything about the OVER THE COUNTER BULLETIN BOARD, so you guess CXTI must find a gate to enter the AMEX, NASDAQ or NYSE to finally get a big deal.
By the way, since i play the OTC(1999) its the first time i see such a ridiculous situation.
Financiers are about to make a killing here,
they will soon convert at a very discounted price, the 5 day 75% average top limit is set to be $1,80 , so if the shareholders wouldn't have been panicked maybe it could have held into the $2.25 X $2.50 range and the CD crew would have been forced to convert nearby the maximum conv' price limit, the past over reaction is very disapointing, well at least the company found a few millions to keep the tasks on tracks.
We'll see how it behaves on friday, if something bullish is cooking at Mister's Lee, we should see some nervious momentums by the end of the trading week or next week, we're now very close from the 3rd quarter 10Q filing.
The company should get more in touch with the shareholders, and never shoot them in their back again!! duh!
CXTI rated strong buy 10/16/05
...by a Swiss bank independent research team, they posted a $4,00 target, the web page is in German so use any free URL translator to understand.
http://www.stock-alert.org/cxti.htm
GLTA, screaming bargain at current price!
This thing's gonna pop anytime soon
If you wish to invest and hold it for long you're clear to BUY NOW!!!
The dragon is coming and its about to burn the 52wH and all the lost flippers with it!
Time to buy back...
Will be hard to get the next bottom i guess, yesterday's momo is sign of great volatility, it's been hard to dive under the $2 mark, will be harder to pull it back just at or a bit over the same limit again, so we can believe a perfect finished bullish penant is about to show up, we could get another nice long leg up without any PR to initiate it, China is the place to be, didn't Greenspan say that US economy wasn't clear for bullishness last days ?
So good fishing to all, great earnings are in corner, the chinese multi billion $ Egov market has surely tons of coal left to bring the CXTI train over the highest top mountains...
AIMHO
Pennant will soon be cleared.
This should be one of the last dip before it starts to resume the bullish trend to the 4$ range, prepare to load up fwiw...still undervalued so far!
GLTA.