THE DREAM IS ALIVE…
I have doubled my shareholding in Hartcourt during the last 5 months. Why? What do I see in Hartcourt that makes me increase my investment in this little company. Here are what I love about Hartcourt:
1. Fundamentals: The growth in revenue has reached over 1,200 percent last year, ending with about $4 Million in Q3 and $5 Million projected in Q4. That’s $20 Million annualized. Not too bad for a small hi-tech company facing the worst Tech Wreck in the history of Internet. The profit picture has improved remarkably with positive earning expected for Q4. How many hi-tech companies could boast similar performance? The asset base has also increased to over $18 Million. This baby has grown up to play football, man.
2. Business Models: The 4 divisions of Hartcourt (ET, SB, AI and E-E) are hi-tech business which are bringing in actual revenue and profit, with low burn rates. They are not pipe-dream or fly-by-night operations. They have been validated by many due diligence: by HRCT shareholders during their trips to Asia, by local and international press, by local government officials, as well as by US Embassy staff in China. All of them are positive and enthusiastic about Hartcourt’s market position and potential growth.
3. Dividend Policy: The promise to spin-off Hartcourt assets into 4 public companies has been kept with the scheduled completion of the ET and SB reverse mergers in January. The market value of these 4 entities will help increase the value of their parent company, Hartcourt. Hartcourt shareholders will also receive the shares of these new entities as dividends, which should help putting pressure on the MM shorters.-
4. Strategic Partners: What do Reuters, Microsoft, IBM, Yahoo, China Telecom, Bank of Communication etc.. see in Hartcourt that make them choose Hartcourt for these partnerships? Exactly what I see here. Need I say more? For a complete list of these 20 partners, see my previous posts.
5. Management: Dr. Phan has built Hartcourt from Ground Zero into a mini-conglomerate in China with all above assets. But the best is yet to come. Dr. Ching’s role will be to transform Hartcourt into a GE-type conglomerate, well respected in global markets. If Dr. Phan is a great leader, Dr. Ching will be a great manager. With his connection to the Hong Kong institutional investors (after all, he manages a one-billion dollar fund), Dr. Ching will bring to Hartcourt tremendous capital firepower to complete the blueprint of Dr. Phan.
YES, THE DREAM IS ALIVE AND I BELIEVE. DO YOU? JIMHO.
AI
