China Crescent Ent. Inc (fka CCTR)

[eddy2]

I’m going to bring up the topic of market cap and what it truly stands for. It’s correct to take the market cap and add your tax deficit found on the bottom line to come up with your gross market cap . If your the bottom line is a negative ie: tax’s owing then you would subtract this from the gross market cap. Now if it’s positive the government owing tax’s back that was paid in then that would be also subtracted leaving you with a net market cap.

What I’m trying to get across is that the bottom line can be a debt or receivable pending the companies present financial position. Now we know there is much more control in having a debt then a receivable so obviously a receivable is a much riskier position too have then a debt.

Collateral debt or receivable is much different but both carry an administrative penalty should they be defaulted upon.

So is the bottom line receivables or debt collateralized. Well of course not but the party who holds the debt are usually good for it pending the value of there currency.

Now most people think the benchmark for a countrys currency is the United States dollar. The thing is the United States dollar has to be compared too all the world commodity price index not just gold, silver or wheat but everything in relation ship too it’s buying power.

One often hears the term dilution. If a currency is loosing it’s buying power it is being diluted.

Now if you have a bottom line that is negative and the dollar is being diluted then the tax debt is being diluted. This would be a good thing yet the market gets panicked. Now if there is tax’s owed due too debt and tax credits being on the books this is a very risky too having the bottom line turn negative for you and having dilution on your side not working against you. I’m going to let everyone here turn the numbers around in a deflationary business environment when you have shrinking spreads between capital costs and consumer revenues. Remember the spread is your friend or return on your capital after EBIDA.

I would like too hear your comments it helps us too udjust our messages too what the retail investor truly is understanding in our commentary’s that we are delivering.