Fellow LTUSrs,
From their 2009 10K:
GROWTH STRATEGIES
Lotus East’s fiscal 2010 growth strategies include, but not limited to the following areas: . . . .
* Geographic and production expansion: Production expansion is a part of Lotus East’s long term plan to tailor to its demand from drugs development. Lotus East intends to start building the main body of the new facility in Inner Mongolia in 2010 subject to obtaining financing and self-generated capital. As part of the plan, a wholesale center would be established in Inner Mongolia to facilitate the growing market demand for pharmaceutical drugs in Inner Mongolia and which in turn, we would hope, would serve the neighboring five Northwestern provinces

Lotus East’s long-term growth strategies include: . . . .
• Expanding into Inner Mongolia in order to prepare for up-coming production of newly-approved drugs and reduce production cost and related taxes.

Why sell then? Will the new Beijing facility have the capacity for handling production of the upcoming newly-approved drugs?

keep it fun & enjoy each one
butch

Here's my numbers that were pulled from the 10Q's & K's.
IMO, there isn't any reason for alarm due to dilution (yet):
March 30. 2010 50,863,217 shares of common stock issued and outstanding.
Q4 2009: 50.046 diluted share count
Q3 2009: 49.745 diluted share count
Q2 2009: 49.562 diluted share count
Q1 2009: 49.255 diluted share count
Q4 2008: 48.055 diluted share count

From Q1 2009 earnings release:
2009 Earnings Guidance
For the fiscal year 2009, Lotus maintains its forecast of net income to range from $16.6 million and $17.9 million, and expects sales to range from $55.4 to $59.7 million.

Actual 2009 results:
2009 net earnings were approximately $16.4 million so they were a little shy of their forecasted $16.6-17.9 million.
Net revenues were approximately $57.8 million in 2009, so they were right in the middle of what they forecasted.

However, their 2010 forecast of "its EBIT of fiscal year 2010 to grow by 15-20%, because its direct sales of drugs to third-party pharmacies in Beijing are expected to generate additional earnings" seems a little chinsey to me.
Does anyone have any thoughts on this forecast?


keep it fun & enjoy each one
butch

Have been monitoring closely, but as of this morning nothing yet.

I have a sneaky feeling that we'll see a trade pretty soon, maybe as soon as tomorrow!!!!


keep it fun & enjoy each one
butch

Today either!!!!
"This is amazing -- not a share traded today so far."


keep it fun & enjoy each one
butch

I wonder what it will take from LTUS for Pappy to get back in?


keep it fun & enjoy each one
butch

I posted this over on the yahoo board:

"I'm sure that I'm not the only one here that doesn't quite understand the roundabouts of these shares from the 2008 privtae placement. So maybe this will be the start of an informative thread for all of us.

I see where according to the 2009 Q3 10Q balance sheet, under the Series A Convertible Redeemable Preferred Stock, it shows an amount of 4,534,129.

Can someone kindly explain what exactly this figure represents?"



keep it fun & enjoy each one
butch

Where's the interest here for this puppy?

How about this for increasing revenue traction?

2009 growth over 2008:
Q1: 10.9%
Q1 + Q2: 15.6%
Q1 + Q2 + Q3: 18.3%

Now let's see some traction with improving collections!



keep it fun & enjoy each one
butch

Bueller . . . . . . . Bueller . . . . . . . . Bueller . . . . . .


keep it fun & enjoy each one
butch

CSP,
This morning I posted the same thing over on the YAHOO board.

Now I'm not the sharpest tack in the box but I was questioning where the hard evidence was that this initial closing transaction with Seaside has actually taken place.


keep it fun & enjoy each one
butch

I tried to add 1 or 2 shares to my position today, but I thought she'd drop just a little further, but I was wrong.

Oh well, maybe tomorrow.


keep it fun & enjoy each one
butch

Another question from the moron here,
If Cohn is dumping his shares, would he be required to file anything with the SEC since HQNT is pink listed? And would we (joe shareholder) have access to these filings? If so, then when, end of the month, each quarter, the day it's filed, the day after, the week after????



keep it fun & enjoy each one
butch

I haven't seen much talk about the expected 03 earnings that DC released awhile ago of $0.13-0.15 a share and how it translates into Q4 results.

So far, through the first 3 qtrs of 03, HQNT has a total net income of $3.71M ($0.78 in Q1, $1.08 in Q2, $1.85 in Q3).

33M shares outstanding.

Now according to my numbers, if you figure high end earnings of $0.15 a share, you get Q4 net income of $1.24M.
$0.15 x 33 = $4.95 (net income for 04)
$4.95 - $3.71 = $1.24 (net income for Q4)

Lower than Q3, but still very good compared to 02.
But what happened to the $$ from the Dataqual sale? I thought it was around $1.4M?

Can anyone shed some light on this?

Monday's shareholders meeting hasn't been cancelled yet, this is a good sign.
I would have to think that if it doesn't get cancelled, we'll see the 10K & possibly Q1 released Monday and that the results will be better than expected (and throw in another PR regarding sales heating up would be nice).

Anyones thoughts?

keep it fun & enjoy each one
butch

According to the first PR yesterday:

"Financial statements, which will report record earnings, will be released on or before June 24, 2004."

But since we've been bannished to the pinks, does this mean that they won't be "certified"?

I thought that "pinks" didn't have to have financials audited/certified? If so, then maybe this is DC's plan to eliminate future late filings?

A little bit of clarrification from the knowledgable people here would be greatly appreciated.


enjoy each one
butch

FYI: my HQNT dividend history

3/31/04: received CASH dividend
5/5/04: CASH dividend taken away
6/9/04: received STOCK dividend
6/9/04: received STOCK dividend

enjoy each one
butch

I read alot of posts indicating that WHEN the numbers come out and IF they are what everyone expects, then they say that the PPS will sky-rocket, but do you really think that this will happen?

I would think that we would not see an automatic sky-rocketing of the price when they are finally released.

Here's my reasons for this:
1) "Joe Public Investor" being worried about raising interest rates.
2) I feel that HQNT & it's management's image have been tarnished because of these delayed financials and the fiasco regarding the dividends.

I myself hope that Mr. Cohn will address the second issue and give some sort of explanation as to the delay in releasing the financials along with what is being done to make sure this doesn't happen again.

As for the dividend fiasco, this may or may not be HQNT's fault but it definitely is an unfavorable reflection on them. An actual explanation as to why & how this happened would help to heal some wounds.

This is just one below average Joe Investors (who's long & looking to add on the way down) opinion.


keep it fun & enjoy each one
butch

A few definitions for you:

"Shortly:
(adv.) In a short or brief time or manner; soon; quickly.
(adv.) In few words; briefly; abruptly; curtly; as, to express ideas more shortly in verse than in prose."

"record year-end . . . ."
I hope my own definition of "record year-end" is not as far off from DC's as was my "shortly" definition.


Anyone care to take a guess as to when they'll be released?
I'll say July 8, and the share price will be $0.89.

I'll be adding all the way down.


enjoy each day
butch

Good morning fellow HQNTrs,
I hope everyones holiday weekend is off to a good start.
The clouds here have parted and the rains have stopped intil Monday.

Just wanted to say I've been an HQNT shareholder since August (sub $0.70) and am looking forward to them releasing their 10K hopefully next week.

Can someone guess as to why they would actually have a news release on Wednesday if they were actually going to release their 10K in under a week? I feel it won't be until late into the week and I'm only expecting $2M in quarterly sales (still over 40% better than Q3) with quarterly EPS of $0.08 and $0.19 for the year.

As for AMEX listing talk, I hope I'm wrong but I really don't see it for some time. I can't imagine that they can get listed when they can't get their filings out on time. I think this will be taken care of when they bring in an actual CFO.

As for the RB board, I think it's a shame how the shorts have flushed that board down the can, I was a lurker for quite some time.

Well, can't sit around when the sun is out, gotta go enjoy it!

keep it fun & enjoy each one,
butch