It is about time ERHE comes back to life.
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There are many people that are insiders and privledged to inside information for all companies at all times. It is what you do with the information that matters. Like I said, I will not reveal any inside info IF I even get access to it. But there is a lot that can be communicated without revealing true inside information.
I was once in a meeting with the president of a very prominent software company in the NW (back in the mid 90's). He did not reveal any inside information but I did "hear" loud and clear that business was going well and it would be good to buy the stock.
The best place to be is on the fringe of inside info, not directly inside.
For me, I have enough ERHE that I am not likely to increase or trade in the near future. For me the timing may be right to see how close I can get to info. I would be happy to shift my shares to "restricted", LOL if I get too close.
Certainly good movement today. Wonder if news is around the corner.
Jim,
I know nothing new from Friday. It may take some more time but I will pursue this as best I can.
I will say that this person is not just a shareholder. My understanding is there is a direct link to ERHE, as in works for a company on ERHE as a client. I still don't know as to what capacity.
Source is based out of Toronto and has over 15 million shares. Hopefully, more details next week.
New Source.
Look forward to sharing what I can later.
Walldog, I agree. It is now about the oil. If there was wrong doing in the past and if the gov doesn't go beyond the statute of limitation and if they can even get enough evidence, it would be a fine at best.
I almost find it humorous as I think the "scare" of the investigation is highly priced into ERHE. The only direction to go is up from here.
Keep in mind that in the original news about the raid on the offices, they specifically pointed out a file with Jefferson's name on it. It is highly probable that this whole raid ect. was about an attempted bribe between Noreen Wilson and Jefferson that turned out not to have any credibility. With SEO, ERHE didn't need any of what Jefferson had to offer.
If there really was any meat on the bone from that investigation, there would have been a lot more follow up than we have seen.
Ironically, this may have been the best thing to happen to the true long holders of ERHE because we were in the natural delay of the oil business between awards and drilling. This allowed for some to accumulate more at discounted prices.
Good luck to all
Persistant chap, aren't you.
Someday I hope one of your puzzles come true.
Spec29, Sorry if I missed something in your past posting but can you clarify your comment "was only told that a rig was found"? Who did you ask this question and how strongly do you feel in their reliability?
If ERHE and partners surprise with drilling news any earlier than late 4th Quarter 2008, it will likely spike the price as we currently sit with speculated late drilling priced in.
No trades in about an hour. Hey Oily, did they halt trading for your Friday news? LOL
Ok, I give. Where is the news? Something has got to break.
Who ever that was, they just placed $135,840 plus commission (on a Nigerian penny stock..) in one trade. Someone is trying to get in fast otherwise the trading desk should be spreading that trade out to hold the price down.
Interesting to say the least.....
Oilphant, is that you buying 600k...LOL
Nice Spread,LOL .201 X .217
Buy when people are selling. Sell when people are buying in a frenzy.
Buy when there is blood in the streets.
Anyone ever have any success with these types of strategies?
Fundamental investing will always outperform in the long run. Pull your emotion out of it.
This is fully expected tax loss selling and no news drifting as drilling is a year off (give or take a year, LOL).
The assets are still there and they aren't getting any cheaper. This stock will jump with any number of positive pieces of news. Buy out; Buy in; New rig of opportunity; New CEO; STP EEZ block news; New acquisition of different properties; new news on blocks 5 or 6 or 9......
It is tough to watch the pps drift for all of us but the rewards will be fun as we eventually watch this fly. For those with means and guts, buy a little more. It could end up being a new years gift for yourself. Imagine a few shares in a Roth IRA. No tax on the capital gains....
Good luck all.
So far, good start to the week. Unfortunately, this has a long way to go for me to make any money off it. Still holding.
I do appreciate how professional ERHE is becoming with the pr's and upcoming meeting. I doubt, however, this pr will do much to improve the current share price, LOL.
That would be funny to have people of this board collaborate on a write in candidate. I wonder how far it would go. LOL
Thanks to whomever was selling today, I was able to the quantity I wanted. Mostly at the Bid. Ok, Sfreed and Oily, I am ready for news....LOL
Piper Jaffray initiates coverage as a buy with a price target of $43.
Earnings report beat estimates by $.05
Guidance was held "in line"
Pretty abusive on the price with this initial coverage.
What gives?
Me neither.
After hour trading can sometimes be confusing. Sometimes it is catch up trading from earlier in the day and it looks like it is new pricing after hours. In this case the trading is several hours after the close so it is likely NOT catch up trades. It is still rather light in volume but it still could be classic "buy on rumor" "sell on news".
I think we are still a few days away from the quiet period ending which will allow more analyst discussion of these new numbers so I think we may have a pause and then another run north. Just MHO.
Looks good to me. I don't recall expectations though:
China Digital TV Reports Third Quarter 2007 Financial Results
BEIJING, Nov. 15 /Xinhua-PRNewswire-FirstCall/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ('China Digital TV'), the leading provider of conditional access ('CA') systems to China's rapidly growing digital television market, announced today its unaudited financial results for the three months ended September 30, 2007.
Highlights for Third Quarter 2007
-- Total revenue for the quarter was US$14.4 million, a 37.3% increase
from the third quarter of 2006 and a 28.9% increase from the second
quarter of 2007.
-- Net income for the quarter was US$8.8 million, a 53.0% increase from
the third quarter of 2006 and a 46.9% increase from the second quarter
of 2007.
-- Basic earnings per ADS (1 ADS represents 1 ordinary share) were US$0.20,
compared to US$0.10 in the third quarter of 2006, and US$0.14 in the
second quarter of 2007.
-- China Digital TV shipped 1.9 million smart cards during the quarter.
-- In the third quarter, China Digital TV entered into 18 new contracts to
install CA systems, including contracts with provincial-level cable
operators in Heilongjiang and Fujian, the municipal cable operator in
Heze, Shandong province, and several cable operators in the city of
Ningbo.
'We are pleased with our results for the third quarter of 2007,' said China Digital TV Chief Executive Officer Jianhua Zhu. 'This quarter's strong performance reflects China Digital TV's leading market position in China's fast-developing digital television industry. With our established brand name, adaptable product solutions, consistently high-quality customer service and extensive industry partnerships, we are confident that we will maintain our leading market position and grow along with this dynamic industry.'
Mason Xu, China Digital TV's Chief Financial Officer, added, 'Our successful IPO last month on the New York Stock Exchange demonstrates the confidence of investors in China Digital TV's business model as well as in the tremendous potential of China's digital television industry. In the coming quarters, we hope to leverage our deep understanding of the local market, leading industry position and long-term commitment to R&D to capitalize further on this exciting growth.'
Third Quarter 2007 Financial Results
(Note: Unless otherwise stated, all financial statement amounts used in this press release are based on US GAAP.)
For the third quarter of 2007, China Digital TV reported total revenues of US$14.4 million, a 37.3% increase from US$10.5 million in the same period of 2006, and a 28.9% increase from US$11.2 million in the second quarter of 2007. During the quarter, China Digital TV entered into 18 new contracts to install CA systems.
Revenues from smart cards and related products were US$12.8 million, a 40.1% increase from the same period of 2006 and a 26.6% increase from the second quarter. Smart card and related products sales were 88.7% of the total revenues for the quarter. China Digital TV shipped 1.9 million cards in the third quarter, 2007, a 32.9% increase over the number of cards shipped in the same period of 2006 and a 23.6% increase over the second quarter of 2007.
Revenues from services were US$1.6 million, a 19.0% increase over the same period in 2006 and a 49.6% increase over the second quarter, 2007. Service revenue was 11.3% of the total revenues for the quarter.
Gross profit for the quarter was US$12.0 million, a 45.1% increase from US$8.3 million in the same period of 2006 and a 34.0% increase over US$8.9 million in the second quarter of 2007. Gross margin was 83.4% for the third quarter, compared to 79.4% in the same period in 2006 and 80.3% in the second quarter of 2007. The year-over-year and quarter-over-quarter increases were primarily due to increased gross margin for system integration services for this quarter.
Operating expenses for the third quarter were US$2.6 million, a 123.0% increase from US$1.2 million in the same period of 2006 and an 11.6% increase from US$2.4 million in the second quarter of 2007.
-- Research and development expenses for the quarter increased 136.4% to
US$1.2 million from US$0.5 million in the same period of 2006 and
increased 14.2% from US$1.1 million in the second quarter of 2007. The
increases were primarily due to higher average R&D headcount for the
quarter, which grew 61.9% from the same period of 2006 and 18.0% from
the second quarter of 2007.
-- Sales and marketing expenses for the quarter increased 58.5% to US$0.8
million from US$0.5 million in the same period of 2006 and 36.1% from
US$0.6 million in the second quarter of 2007. The year-over-year and
quarter-over-quarter increases were primarily due to costs associated
with ongoing marketing and brand promotion activities.
-- General and administrative expenses for the quarter increased 308.9% to
US$0.6 million from US$0.1 million for the same period of 2006 and
decreased 13.7% from US$0.7 million in the second quarter of 2007. The
year-over-year increase was primarily due to an increase in personnel
costs and share-based compensation expenses. The quarter-over-quarter
decrease was primarily due to zero provision for doubtful receivables
in this quarter.
Operating margin for the quarter was 64.9%, compared to 68.0% for the same period of last year and 58.9% for the second quarter of 2007.
Net income for the quarter was US$8.8 million, a 53.0% increase from US$5.7 million in the same period of 2006 and a 46.9% increase from US$6.0 million in the second quarter of 2007. Basic and diluted earnings per ADS for the quarter amounted to US$0.20 and US$0.19, respectively.
Non-GAAP net income for the quarter was US$9.2 million, a 57.3% increase from US$5.9 million in the same period of 2006 and a 41.8% increase from US$6.5 million in the second quarter of 2007.
Outlook for the fourth quarter ended December 31, 2007
Based on information available on November 16, 2007, China Digital TV expects its net revenues for the fourth quarter of 2007 to be in the range of US$15.5 million to US$17.5 million, representing year-over-year growth in the range of 61% to 82%.
Conference Call Information
China Digital TV's management will host an earnings conference call at 7 p.m. November 15, 2007 (U.S. Eastern Standard Time, or 8 a.m. on November 16, 2007 Beijing/Hong Kong time).
Dial-in details for this conference call are as follows:
United States: +1-617-224-4325
Hong Kong: +852-3002-1672
Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode for all regions is 'China Digital TV Earnings Call.'
Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn .
A replay may be accessed by phone at the following number until December
14, 2007:
United States: +1-888-286-8010
International: +1-617-801-6888
Passcode: 83073359
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'may,' 'should' and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the fourth quarter of 2007 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans. China Digital TV may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.
Further information regarding these and other risks and uncertainties is included in our registration statement on Form F-1 and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.
About China Digital TV
Founded in 2004, China Digital TV is the leading provider of conditional access ('CA') systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Tongfang Digital TV Technology Co., Ltd.
For more information please visit the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn .
China Digital TV Holding Co., Ltd.
Unaudited Consolidated Statements of Operations
(in U.S. dollars)
For the three months ended
September September
30, June 30, 30,
2007 2007 2006
Revenues:
Products 12,784,867 10,094,845 9,125,783
Services 1,633,471 1,092,057 1,372,259
Total revenues 14,418,338 11,186,902 10,498,042
Business taxes (61,292) (57,393) (110,045)
Net revenue 14,357,046 11,129,509 10,387,997
Cost of Revenues:
Products (1,803,858) (1,487,442) (1,369,239)
Services (580,362) (709,499) (765,638)
Total Cost of Revenues (2,384,220) (2,196,941) (2,134,877)
Gross Profit 11,972,826 8,932,568 8,253,120
Operating expenses:
Research and development expenses (1,201,355) (1,052,015) (508,242)
Sales and marketing expenses (842,925) (619,460) (531,780)
General and administrative expenses (605,503) (701,894) (148,074)
Total Operating Expense (2,649,783) (2,373,369) (1,188,096)
Income from operation 9,323,043 6,559,199 7,065,024
Interest income 145,805 62,517 83,605
Recognition of change in the fair
value of warrants -- -- (1,351,594)
Income before income tax 9,468,848 6,621,716 5,797,035
Income tax expense - current (726,734) (659,319) --
Income tax benefit - deferred 41,044 15,560 25,582
Net income before minority interest 8,783,158 5,977,957 5,822,617
Minority interest -- -- (82,935)
Net income 8,783,158 5,977,957 5,739,682
EPS - Basic ordinary shares 0.20 0.14 0.10
EPS - Basic preferred shares 0.20 0.14 0.24
EPS - Diluted ordinary shares 0.19 0.13 0.09
China Digital TV Holding Co., Ltd.
Unaudited Consolidated Balance Sheets
(in U.S. dollars)
September December
30, June 30, 31,
2007 2007 2006
Current assets:
Cash and cash equivalents 25,926,100 16,365,704 21,137,216
Restricted cash -- 52,729 51,238
Accounts receivable 8,424,822 6,343,752 2,862,276
Inventories, net 4,559,108 4,224,011 2,759,209
Prepaid expenses and other current
assets 1,888,440 1,267,525 1,349,195
Amounts due from related parties 1,427,358 1,594,899 1,668,036
Deferred costs-current 511,184 531,955 580,157
Deferred income taxes - current 72,623 67,262 62,864
Total current assets 42,809,635 30,447,837 30,470,191
Property and equipment, net 1,035,465 901,654 537,515
Intangible assets, net 1,067,266 1,169,850 1,464,389
Goodwill 453,498 447,262 432,422
Long-term investment 402,029 105,049 --
Deferred costs - non-current 396,377 426,828 600,357
Deferred income tax - non-current 16,563 -- --
TOTAL ASSETS 46,180,833 33,498,480 33,504,874
Current liabilities:
Accounts payable 430,671 368,424 884,798
Accrued expenses and other current
liabilities 1,480,474 1,212,883 1,360,456
Deferred revenue-current 7,774,937 5,089,032 6,899,521
Dividend payable -- -- 11,300,000
Income tax payable 850,241 728,466 --
Total current liabilities 10,536,323 7,398,805 20,444,775
Deferred revenue - non-current 886,667 798,479 1,079,493
Deferred income taxes -
non-current -- 20,799 39,739
Total Liabilities 11,422,990 8,218,083 21,564,007
Minority interest 4,000,000 4,000,000 4,000,000
Series A convertible redeemable
preferred shares 16,078,197 16,078,197 16,078,197
Shareholders' equity/(deficiency):
Ordinary shares 17,000 17,000 17,000
Additional paid-in capital 5,917,571 5,574,138 4,887,267
Statutory reserve 2,353,373 2,353,373 2,353,373
Retained earnings / (accumulated
deficit) 4,808,874 (3,974,284) (16,136,820)
Accumulated other comprehensive
income 1,582,828 1,231,973 741,850
Total shareholders'
equity/(deficiency) 14,679,646 5,202,200 (8,137,330)
TOTAL LIABILITIES, MINORITY INTEREST,
SERIES A CONVERTIBLE REDEEMABLE
PREFERRED SHARES AND SHAREHOLDERS'
EQUITY/(DEFICIENCY) 46,180,833 33,498,480 33,504,874
China Digital TV Holding Co., Ltd.
Reconciliation of Non-GAAP Results
(in U.S. dollars)
For the three months ended
September September
30, June 30, 30,
2007 2007 2006
GAAP Net Income 8,783,158 5,977,957 5,739,682
Non-cash share-based compensation 343,433 378,157 31,466
Amortization of intangible assets 118,041 164,530 105,792
Non-GAAP Net Income 9,244,632 6,520,644 5,876,940
For investor and media inquiries, please contact:
In China:
Helen Wu
Senior Manager of Investor Relations
Tel: +86-10 8279-0021
Email: ir@chinadtv.cn
Helen Plummer
Ogilvy Public Relations Worldwide (Beijing)
Tel: +86-10 8520-3090
Email: helen.plummer@ogilvy.com
In the United States:
Jessica Cohen
Ogilvy Public Relations Worldwide (New York)
Tel: +1-646-460-9989
Email: jessica.cohen@ogilvy.com
SOURCE China Digital TV Holding Co., Ltd.
Source: PR Newswire (November 15, 2007 - 5:00 PM EST)
News by QuoteMedia
www.quotemedia.com
Quarterlies are being released tonight at 7:00
Children, children....
Mark and AA. You both provide valuable input to this board IMHO. And I will bet you are both right! It is possible. Follow me on this.....
First, thank you Mark for taking the time, making the effort, and covering the costs of communicating with KNOWN, Factual and PUBLIC sources of information such as the JMC and IR departments of the direct companies. I believe you post factually exactly the information released by these sources. Sometime the information they pass is correct and sometimes changes happen (such is life).
AA, thank you for trying to add value to your investment by working your personal sources for which you have some confidence in and then sharing what you can, when you can. Just as Marks info sometimes does not come to be, your past information has not always come to be. It doesn't mean the information was bad at the time, it just means changes or decisions changed (such is life).
In this case, Mark is getting info directly from an IR source. They can only LEGALLY feed information that the company has approved for public release in appropriate form (PR's etc.). Until these IR people are fed new information which they then publicly release (PR, conference call etc...) they will reiterate the most current information they have.
For AA, if you truly have some kind of line to an internal source, your information will be different. Your sources may know that a new rig has become available for earlier drilling or that the current planned rig is getting postponed for another 3 to 6 months or whatever. Whatever info that you come by from a "leak" or inside info will always be different than what an IR department reiterates.
Eventually, one, both of you or neither one of you may end up being correct on any particular issue. Changes happen. Live with it.
So, stop calling each other liars and grow up and appreciate different info from different sources.
Have a great day.
I haven't had the opportunity to look into these presentations and most recent pieces of information but I thought I would throw out one potential correction to people's assumptions.
Drilling itself does not take 60 days per well. If I recall correctly from OBO-1. The drilling takes approx. 30 days and it takes up to another 30 days for the companies to analyze the data and report back to shareholders on discoveries (or their spin on it).
If one company had a contract to drill multiple holes in the general same area, I would think they would drill one, move to the next location and begin drilling while they analyze the data. They have already planned out where they want to drill the first 5 holes so it is not like they are waiting for the publically released information on the first hole before they decide where to go with the rig.
Hopefully, some company will come out and clarify the actual timing of when the AA will become available for Addax. Till then, I will wait.
Good luck
I agree. I am patiently waiting the earnings report out next week.
Good luck all
Oilphant, you say you "have no worry about ERHC". I thought you said ERHC won't be ERHC any more. Now you're talking colors yellow, red and green.... What's this, the Italians just bought us out, LOL.
Just having some fun on a slow month.
Although I am not thrilled with the current share price, I am not screaming bummer either.
For those of you that are unhappy, ask yourself if the fundamentals have changed with this company or it's assets to warrent the current downtrend?
Since drilling is a year away and no new news is coming from the company (and there really shouldn't be except for potential of EEZ which is out of their control), the share price will not be going up dramatically any time soon.
Second, it is very natural for many stocks which are at near term lows (4+ years for ERHE) to go into tax loss selling in Oct - Dec. Unless you expect news, clever investers will try to leave the stock for 30 days and re-enter at close to if not lower prices. Very likely the reason for downward pressure right now.
IMHO, even with no new news for the next 4 - 6 months, I figure one can likely get a 20% - 30% gain off the tax loss selling cycle if you have the will power to play it.
Last but not least, "buy when there is blood in the steets".
Good luck all
I doubt we have seen the tax loss selling prior to year end yet either. I expect more downward pressure. I just don't know how much further it will go down. I am planning on moving more money into my high risk accounts over the next 3 to 4 weeks for this type of opportunity.
Good luck all.
Hope not but who knows, you might be right.
Nearly HOD.
Strass,
I have no idea where some people on this board have started talking about ERHE getting fined.
I strongly doubt ERHE will even get their hand slapped. Nothing has come of the investigations to date. Any issues with the Offor bribes are long past their statue of limitations and I highly doubt there was ANY record of anything Offor did sitting in a folder in Texas. I certainly hope people use some common sense and logic when it comes to this matter.
I highly suspect that the raid on ERHE was due to the Jefferson issue and ERHE ended up not being directly involved. The information taken would be, at best, used against Jefferson for showing a pattern of attempted bribes. End of story. Unfortunately, it will take a while for this to unfold.
'more please', Your arguement to purchase ERHE vs Addax is likely a good strategy as we get closer to drilling.
Right now, we are a year away from drilling for ERHE. Addax, on the other hand, has many irons in the fire. They are constantly making deals and have other active oil fields in production.
IMO, the investigations are overly priced in but may still be holding the price down. There realy is no reason for new investors to get excited about ERHE. People who know the story and believe in the potential are already "in" or still accumulating. Many speculators and traders have taken some off the table to play other runs as we may have 3 to 9 months before ERHE starts it's next big climb into drilling (hopefully with no turning back).
I have increase my position by about 50% in the past 2 months and it is possible that I will continue acquiring into the first quarter of 2008 if the price stays stagnant or declining.
Good luck to all.
I know two people that got in on NED. Not doing quite as well as the STV IPO. I am more into the STV technology. In my opinion, the market share and potential growth for STV over the next 2 years is way more intriguing.
Yes, the next earnings report could send this one up to a new level. Lets all hope so.
Unfortnately, it is doing more down that up recently. I am pretty sure the traders have left the building. I should start a gradual or better climb from around here. IMHO
Great points marc. I see STV and their Digital technology being similar to the Cell phones beginning 10 years ago. There will likely be phenomenal growth that we can't really put down on paper because it looks too unreal. But it will happen. I feel that due to the likelyhood of growth way beyond expectations that the "tea bubble" is not really priced into STV so it is an added layer of reduced liability.
Number of employees is close to irrelavant except as it relates to profitability.
Compare those two company's on Earnings and P/E ratio and I will give it a look.
Nice opening again. I was liking the slight down day yesterday to give this stock a breather. Volume is lighter today but still busy. Preparing for another run, I suspect.
Good luck all
Good Analysis and comparison posts. Keep the info flowing.
Opening Gap filled, STV can continue it's climb.