China Yida Holdings (CNYD)

[temp luvs amy]

ORCH's gyrations never were that easy for me to call, and she left me standing at the altar on one of her previous violent dips. My overall view of her points to continued misery with a bounce to the mid 7's possible at some point, and that point being a defining moment for the future. A breach of the sextuplet bottom (near 5.40) would put the likelyhood of such a bounce to rest and would imply some serious weakness in her fundamentals, the sector, or even the overall market. Clearly, if the overall market dropped substantially before she breached that bottom, market weakness could be blamed for her poor performance.

From the fundamentals side, I see even more red flags. At some point she has to manage those revenues into cash flow and profit. She can't continue to survive on PR's and hype as if she were John Kerry. Bottom line improvement is going to be essential unless they decide to convert into a charitable organization. Clearly here, the service is most essential to those who can least afford it, and therein lies a critical flaw in the business plan unless government and/or charity step up to bear it. The current numbers put her on my "avoid" list. She's had plenty of time to turn the investment into profit.