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Expecting some nice updates from the company.
I will also be leaving somewhere warm next week, but am hopeful that there will be some nice results from the company. Albeit 2013 will have been a slower year with higher expenses due to ramping up many new sales efforts, call center, etc... but I expect we should see positive forward looking updates about what 2014 will bring our way. I have been accumulating at these lower prices as I expect 12-18 months from now we will be far away from the current price!
I would'nt doubt it. But I don't think this would affect the year end report but Q1 2014 will likely have been impacted. Regardless I would see it as an out of the ordinary circumstance. If I was valuating the company I would be adjusting for this seasonal deviations that does not frequently occur.
I took out the lot 15,000 shares from one of last weeks sellers with some small cash I had laying around. Many days I was the only volume on this stock.
My opinion is 2014 will be a good year as I believe they will continue to ramp up new plasma donation centers which should bolster operating income.
However, 2013 was a little slower so I don't expect too much. My bet is expenses are a little higher as they hired sales staff, had the call center and are in growth focus mode which costs money. I say year end will see lower margins then the prior year due to the reasons mentioned. Albeit I am accumulating at these lower prices as I believe this to be an opportunity.
What I will be looking for is more so the outlook of future growth potential. I would not be surprised if we hit 0.50 at the end of 2014 say Q3-Q4. However, 0.50 is my ceiling price for the year as there is an over hang of warrants to be exercised at that price which will prevent the stock from going too much higher than that.
That said, 0.50 from 0.17 is a pretty damm good return. I would not complain if this were to occur!
I would say that Q4 will be slightly stronger than the last quarters but based on the company's revenue recognition, I am under the belief that 2014 will be much stronger of a year as the company has been acquiring much more plasma donation centers and based on their current market share for these centers I would not be surprised if they became the sole card distributors for these centers.
Along with this, the international sales representative and enhanced infrastructure would prove promising for some interesting international opportunities. It only takes one big contract to hit internationally and future earnings could sore thus sending the stock price rocketing upwards.
I would like to believe this will be a 1$ stock someday, but to be conservative I will say my end of 2014 target is 0.50$. Albeit, this still represents a sizeable return.
I believe 0.50 will represent a strong resistance due to all the exercisable warrants at that price.
I was able to get a few more thousand at 0.18.
I've got a couple thousand $ in at 0.18, well see if he budges lower than 0.19.
Same here, 2014 will be a good year...many developments are in the process for this company to prosper.
This recent news release exemplifies that the company is eagerly trying to expand abroad. Currently it has been gradually expanding in the US its Plasma Donation Center base but with a Sales Veteran by their side seeking out new opportunities and new markets to explore, the companies growth is sure to show drastic improvments in the next 12-16 months. All it really takes is one large contract to hit and the company could get huge exposure and benefit from a large revenue stream.
I am happy with this new hire, his experience and track record speaks volume of what he could potentially do for 3 PEA.
As many have already said we only scratching the tip of the iceberg...there is much more to come...
Summary of Q3 Key Factors:
Since many investors misinterpret the results; here are some key factors to keep in mind and that actually shows an overall positive picture for the 3 Pea.
- Revenue is up over 2012s Q3 by 70% from 622k to 1.061M
- Cost of sales were up representing 69% of revenue compare to 49% in 2012 but note that most this is attributable to non-recurring start up costs ('A significant portion of the increase in cost of sales for the three months ended September 30, 2013 can be attributed to a non-recurring start-up expenditure to an independent sales organization related to one of our newer card programs approximating $200,000, which caused our cost of revenues to increase above historical norms.')
- adjusted cost of sales comes in near 50% (adjusted for the 200k non recurring portion) which is in line with the previous years trend.
-Note that G&A expenses are also up alot on the increased infrastructure cost added by the call centre and now the added sales and marketing staff which in the long run will materialize nicely. Therefore the net loss is considered a non issue to me and as some would say Short term pain for long term gain.
- over the past 9 months;
- you will see that gross profit margins increased to 29% from 23% during the fiscal years 2013 and 2012 which was a result of better economies of scale for the revenue.
- Revenue slightly down but is all due to the timing of the contracts and the way that revenue is accounted for.
- I think the following forward looking statement speaks volumes:
"Having invested in the necessary infrastructure and manpower to fuel our future growth, 3PEA is confident that we will capitalize on the market opportunities that await us. We anticipate a rapid increase in revenue from our plasma donation center card programs, as we will be adding a significant number of new plasma donation centers to our platform in the fourth quarter of 2013 and beyond," said Arthur De Joya, Chief Financial Officer, 3PEA International. "3PEA has started building its internal sales and marketing team and are in the final stages of developing a sales and marketing strategy. We are paving the way for our expansion into the European market, and have invested significant resources into our business development plans for both in the United States and abroad."
- The companies increased infrastructure is not without reason the European markets are filled with very large opportunities for prepaid card programs coupled with a large increase in plasma donation centers in the US in my opinion 2014 should be a stellar year for the company.
- Afterspeaking to company reps on multiple occasions I know the company would not raise capital without reason or without it bewing worth a higher return for investors. From what I have seen, the company would only raise capital if the cost of capital is lower than what the projected return will be for shareholders. Some may see the past quarters as mediocre, but if you are in this to make a good return the returns are not made over night, the train will leave the station and it will catch many by surpries. All it takes is one large contract to hit and the companies earnings will explode, I believe this may be found internationaly.
Best of Luck to all investors, patience will be rewarded.
Erik,
I don't expect it to be a huge quarter... I think it should be better than the last but I am expecting the company should be more successful next year as it hopefully is succesful at getting larger contracts and take advantage of its enhanced infrastructure/call centre. The revenue is reported in a cyclical manner, I would expect the last quarter to be better but the current revenue cycle appears slow as many projects were coming to an end thus no revenue was materializing...I would easely expect us at 0.50 in the next 12-16 months as I am hopeful that something very big should happen for this small but very well run company... Take advantage of these low prices to accumulate...In the long run investors should be highly rewarded.
After speaking to Brian the investor relations, he explained that revenue is declared with the timing of the card programs, which makes revenue streams at times inconsistent. If you look in past years there have been some quarters where revenue slumped down.
Otherwise, gross margins have grown in comparison to the same quarter last year from 20% to 33% as cost of revenue has decreased in proportion to total revenue. Operating expenses have increased due to the addition of a call center which should pay for itself with new projects that are sure to develop. With the hiring of the capital market advisor firm I am sure this is a one off quarter and there remains a very bright future to come...
We should be fortunate to be able to pick up at such cheap prices!
I Personally believe the stock will be trading near 0.50 within the next 6 months.
We are slowly getting more investors knowing about the company. Sooner or later the seller will halt his selling. It was much more quiet on this message board a year back. Gradually awareness will increase and is sure to become exponentially bigger in the years to come... Patience will be rewarded... that is certain.
TPNL Key Growth Opportunities:
As we may have all realized TPNL is a diamond in the rough and sooner or later more and more people will hear about it until it gets fully uncovered and converges towards its fair value. We are fortunate to be able to pick it up before the mass market finds out about it.
For the new comers to our board here are some key take-aways that make TPNL a very interesting opportunity:
* They are becoming a fully integrated payment solutions company. Today's news is yet another move by the company demonstrating this aspect. Many prepaid card company's outsource multiple aspects of their business to third parties. TPNL is reducing its cost, increasing the control it has over its operations and thus increasing its value as a whole by streamlining its operations.
* The recent Platform shows great versatility for the company to expand its accessible market size through both geographical growth (by accessing new markets as the platform even offers Europay) and potential product offering expansion (as the platform is very versatile for many different types of prepaid cards).
* The company is setting itself up for growth. First a state of the art call center, now a globally certified payments platform, in my opinion big things are to come.
* The company continues to grow at an impressive rate with almost every quarter growing net income by triple digit percentages over the last year.
* The company is undervalued on the basis of multiple metrics, P/E of 5. By annualizing the current quarters revenue of 2.1M*4=8.4M/42,388,040 (shares fully diluted) = 0.1981 sales per share.
Therefore P/S=0.29/0.1982= 1.46. If you look at some of the acquisitions in the industry coming in over 10 times sales, just imagine what that would mean for 3PEA.
* Debt holders are willing to convert debt to shares and warrants, what do you believe this means? They definitely do not believe the shares will be going down too much if they took that deal. Along with warrants exercisable at $0.50.
These are just some of the highlights of this company. Not to mention a great management team which appears to be pushing the IR these days with great transparency towards investors and a well executed business plan.
Q1 Highlights - Overall Positive Outlook
I looked briefly over the Q1 release and found it to be overall a very positive quarter for the company. Here are the main points that caught my eye:
* Increased average production from 16,370 Boe per day in the first quarter of 2012 to 17,451 Boe per day in the first quarter of 2013 (7 percent increase)
* Turner Valley volumes reached 3,623 Bbl per day of oil, the highest level in 50 years
* Legacy’s operating netbacks increased year over year from $45.92 per Boe in the first quarter of 2012 to $47.43 per Boe in the first quarter of 2013 (6 percent increase), in spite of materially lower light oil prices
* Reduced operating expenses from $15.36 per Boe in the first quarter of 2012 to $13.88 per Boe for the first quarter of 2013 (10 percent decrease); reduced total operating costs (operating plus transportation costs) from $17.83 in the first quarter of 2012 to $16.78 in the first quarter of 2013 (6 percent decrease). Very nice reduction in expenses as the company increases economies of scale and becoming a larger scale producer with lower expenses and higher net backs.
* Subsequent to the end of the quarter, Legacy’s banking syndicate increased the borrowing base from the previous $525 million to $600 million, bringing total borrowing capacity to $800 million. Security for the facility in the form of a fixed and floating charge debenture has been increased to $1 billion from the previous $750 million, and the term-out date for the facility was extended to April 25, 2014. The borrowing base continues to be subject to semi-annual review, the next of which is scheduled to occur in October 2013; Potentially could be increased again in October.
* Increased funds generated from operations of $60.6 million ($0.42 per share) in the first quarter of 2012 to $62.1 million ($0.43 per share) in the first quarter of 2013 (2 percent increase on an absolute and per share basis). Although some might argue that EPS is negative, EPS is over rated especially for ressource based companies due to large assets which create huge depreciation expenses. What really matters is cash generated from operations, ignoring non cash items (such as depreciation). In this case funds from operations is up on a per share basis, not much but considering the severe wheather experienced its good, and with everything coming up in the year ahead it will be up much more.
* Activity levels returned to normal by the end of the first quarter, resulting in average production in excess of 19,000 Boe per day for the month of April 2013, including production from the acquisitions closing in mid-April and after giving effect to production shut-in due to spring break-up. The Company continues to be on track to meet its previously announced increased full year production guidance. Re-iterated meeting guidance and stated they were producing at 19k BOE in April, very strong production indication.
* With road bans being lifted, Legacy anticipates spudding a well at Taylorton on May 16 and spudding a well in Steelman on May 21. In addition, the Company should have five service rigs mobilized on May 14 for workovers on wells in SE Saskatchewan. Shut-in volumes are already being restored. All of this activity is occurring three weeks earlier than planned. Ahead of schedule, always great to hear.
*Spearfish production has outperformed the independent reserve evaluators proved plus probable type curve
* More than 385 net locations are unbooked in the Spearfish which could grow to nearly 600 net locations with inclusion of all Spearfish lands held in North Dakota
* less severe spring break-up than anticipated, Legacy has commenced operations in SE Saskatchewan. Three drilling rigs are expected to be running by the end of May and five service rigs working this week to restore production. Drilling continues in Turner Valley. With an early start to Q2 activity, Legacy is well-positioned to deliver another year of strong organic growth. Q2 probably will look great with everything that appears to be going strong and ahead of schedule along with a great indication that spring break up was less severe than expected.
On a going forward basis the company looks very strong and the outlook looks great, the shares should start performing as management is doing very well with the efficiency of operations. Albeit we would all want more focus on shareholders or even dividends but currently the strategy of re-investing cash flows is the best to acheive further growth. In time this disconnect with share price and company performance will correct itself, or else I would not be surprised if we got taken over by a larger player as Legacy is a very solid player in its field.
TPNL Featured in New Article
Please find below an elaborate article on the prepaid card industry and its extensive growth along with a special mention on 3 Pea!
http://seekingalpha.com/article/1336891-everyone-wants-their-hands-on-the-prepaid-card-industry?source=yahoo
Earnings Looking Good...
As per my calculations YOY increases are as follows;
--> 103% increase in revenue
--> 106.1% increase in Operating income
--> 744.6% increase in Net Income
--> 809% increase in Cash from Operations
--> Very good amount of cash on hand in comparison with last year
$1,809,085 from $21,612
Although gross margins tightened from 26 to 21% due to higher cost of revenue.. I see this as a non issue as some margins have to be sacrificed in the expansion stage of the company. I am sure once they have larger economies of scale margins should stabilize as costs will be more distributed among their revenue base. Some of these costs are most likely attributed to the adding of new products which as they gain traction will be sure to be great profit generating lines.
The company has some good pipeline of expansion projects on the go, I am sure earnings will only continue to go up from here...
Great job to the management team! This one is sure to be a winner...been accumulating all week..not many sellers out there which is a good sign!
Follow Company Updates and PR's on Twitter
Company updates and PR's will be tweeted @ChinaCleanEnerg
Also keep up to date with everything and vote for the recent polls on the company facebook page:
http://www.facebook.com/pages/China-Clean-Energy-Inc-CCGY/187978291246517
FYI talked to the CFO and they will be making a more professional and complete video over the the next 6 months and will be be working on increasing awareness.
Conference call highlights:
The conference call and earnings were spectacular.
The company answered very good questions and the prospects for the company seem very prosperous. Its actually ridiculously undervalued at the current share price and its nice to see that management thinks the same.
Some of the highlights:
-Prices increased from 1300 to 1500, in 2009 to 2010 for specialty chemical products. The company stated prices were even higher in Q4, near 1620, and that Q1 was looking even better.
-There was a mention by the CFO that Q1 2011 earnings were much better than Q4 2010.
-Current capacities are roughly 95% for specialty chemicals and 20% for bio diesels. Although utilization rates are higher for specialty chemicals they have been shifting production to concentrate on higher margin products which should help boost earnings even more.
-the company is applying to have tax rate reduced from 25% to 15%.
-They are capitalizing on their own provinces demand to lower transaction costs such as shipping costs as well as benefit from buyers picking up products directly from the factory which has reduced costs drastically.
-the company anticipates to acquire a feedstock supplier with cash on hand and current cash flow which should boost margins by an additional 3-5% as well as add to earnings.
-the company seems to be leaving towards the AMEX and as per my question it appears they do not want to do a reverse split and they believe that the share price will appreciate above 2$ within the next year. In my opinion this portrays the confidence management has in their company and their belief that the share price is undervalued.
-In the future the company anticipates to expand through building another production plant with warrant money (when price reaches over $2 and after acquiring a feedstock supplier)
-The company anticipates growing shareholder value through issuing more PR's and updates; attending more conferences to increase visibility of the company in the public's eyes, increasing its earnings and reducing risk by securing a feedstock supplier as well as listing onto a major exchange.
-The Guidance of 0.36 does not take into account any acquisition, therefore in the event of an acquisition we can expect EPS to be higher.
WOW nice guidance, would signify significant improvement over this year. The companies outlook looks very positive and I also expect margins to rise which is a plus.
I will try to get on the CC depending on my work. Looking good and looking forward to hearing actual results and CC.
As most have been, I was also quite perplexed by these departures. I emailed Mr. Chen immediately to get answers and have been emailing him back in forth for the past few days.
The summary of our discussion is as follows:
- Although he could not disclose the entirety of the personal situation of both these directors, one has fell ill, and it has become though for him to travel to China for meetings.
-As well, from what I got they were both recruited as they were international acquaintances of the company which the company feels is not right therefore they took the opportunity to completely restructure their board since they want skilled independent directors that will help guide better decisions for shareholders as well as help them with the up-listing process.
-Mr.Chen also stated that he understands that shareholders may feel concerned but that he assures that he is searching.
suitable independent directors and will issue a press release once he has news. He also reiterated that the earnings and CC will be in the end of March.
-Lastly to reassure me once more that he believed that the company will be a success he informed me that he bought 60,000 shares for $1.
I also checked filings and found that the directors never sold their holding in CCGY therefore showing that maybe they also believe in CCGY's future growth. The ROTH conference is also Monday where CCGY will be presenting at 12:30.
I personally believe Mr. Chen he seems like a very genuine person and also believe that there is not anything wrong because if insiders really knew something was wrong, they would sell their shares to profit before a fall but this is not the case.
Agreed results are better than what I had expected and better than managements prior guidance I am surprised this is no up more today. Actual earnings release and CC should bring this little guy up huge!
Why are CCME shares listed as having a restriction starting today?
It appears on my brokerage account "restriction started today" beside CCME.
New Article Concerning CCGY
View it at the following link:
http://seekingalpha.com/article/255319-china-clean-energy-a-stellar-opportunity-in-china-s-clean-energy-sector
NEW Seeking Alpha Article concerning GFRE!
http://seekingalpha.com/article/254027-gulf-resources-a-compelling-opportunity-in-the-bromine-market
China Small Caps: No Love for Evident Value
http://seekingalpha.com/instablog/859034-erik-wright/139825-china-small-caps-no-love-for-evident-value
http://translate.google.ca/translate?hl=en&sl=zh-CN&u=http://www.sgxsxh.com/newshow.asp%3Fid%3D547&ei=a7xUTbb0JsH7lwfdk-yvBw&sa=X&oi=translate&ct=result&resnum=1&ved=0CBsQ7gEwAA&prev=/search%3Fq%3Dhttp://www.sgxsxh.com/newshow.asp%253Fid%253D547%26hl%3Den%26safe%3Doff%26sa%3DG%26prmd%3Divns
here's the translation of an earlier post, shows gulf resources subsidiary Shouguang City Haoyuan Chemical Co. Ltd (SCHC)as the top producing bromide company in china by far.
Ultimately this company has all of the aspects of a great Warren Buffet pick. One of his rules was that the company was in a sector that had large barriers of entry. You can't get much better than GFRE the Chinese gov't only gave a very limited amount of bromide licenses (about 6 i believe). GFRE has one of them and commands a strong market share in the sector of crude salt and especially bromide. There strategy of gobbling up smaller bromine players in china and other properties seems ideal with their strong position in the industry. This is yet another reason why the government would back them and help them with these land acquisitions.
Another thing to note is Gulf Resources has very high margins which are increasingly rising with their waste water treatment and chemical line. Not to mention no debt, very high current ratio, huge cash per share, healthy price to cash flow, an extreme bargain based on peg and forward p/e, and lastly a pending internal controls assessment by Deloitte.
No doubt a great buy for a huge discount.
Personally, CCME is largely undervalued, and it deserves to be bought at these prices, its not just a fact of being undervalued but a fact of principles you can't let these manipulators win. They should be charged with manipulation and falsifying documents for their own benefit. They took short positions and wrote articles to make money on these positions. Chinese small caps don't get the respect they deserve. One day will come when they will... as for the moment its ridiculous that all Chinese small cap companies get painted the same color.
Just sent a long message to Jacky, detailed that I urge a buyback as it would provide a good ROI as well as increasing the investor sentiment. As well urged a response to allegations with proof backing up every statement.
He should have a good amount of emails driving him to make a detailed reply quickly.