HOTTEST NASDAQ stock next 2 weeks:
JADE ($3.45) is a China jewellery stock that was $12 before they became delinquent in filing in 2006. JADE said today they will announce financial results June 30. The results should be BLOWOUT as JADE has been gtowing and adding stores like crazy since 2006. JADE has $3 per share liquid assets. Here is a good post discussing potentialo from Yahoo:
I've been looking at the figures in the Dutton report from last January and I have made several observations.
In 2006 the year-end store count grew to 44 stores. The average store count for 2006 was 31 stores. The average revenue per store was $487,484. Total retail revenue for stores was $15,112,004. 63.7% of this amount, or $9,632,000, was gross profit.
If ENZO stores today are generating as much revenue as they did in 2006, the results should be staggering. The unofficial count for ENZO retail stores in China today is somewhere around 100 stores(93 as of Dec. 28, 2007). Using 2006's average revenue per store we can estimate that LJI's 100 ENZO stores today are generating revenue of about $48,748,400. Assuming a gross profit of 63.7% (same as 2006), one can estimate that ENZO stores are generating gross profits of about $31,052,730. If true, this would be incredible - especially when one considers that LJI's entire gross profit for all of 2006 (wholesale and retail) was $34,924,000!
Let's now add to this figure the gross profit from LJI's wholesale business. In 2006, LJI's gross profit from wholesale was $25,292,000. Let's assume that LJI is being hit hard by the U.S. recession and that their wholesale business is down by 25%. Using the 2006 wholesale figure of $25 m, LJI's gross profit from wholesale would be reduced to about $18,969,000. This looks really bad at first until we add this figure to the gross profit from retail. When added together they amount to $50,021,730!!! That's a 43% increase over 2006's gross profit.
LJI added 49 Enzo stores in 2007, growing from 44 stores in 2006 to 93 stores in 2007. 27 of these stores were not added until the final 4 months of 2007. Thus, the average store count for 2007 was probably somewhere around 65. So as you can see, the estimates I made above using 100 stores are only applicable to this year and not to last year.
One more thing, for those of you who have your eyes fixed on the U.S. economy you need to understand something - LJI's gross profit from their ENZO stores in China is 63.7% compared to only 23.3% for their wholesale business to the U.S., Canada, and elsewhere. Hence, the ENZO stores in China is where the real money is at. This is why LJI said in their Roth Presentation that one of their 3-Year Goals was for "ENZO revenue to exceed wholesale." They also plan on continuing "to open new stores by 2010" (depending upon access to capital).
IMO this stock is beaten up and will one day soar like FUQI is right now. I hope you guys and gals got in on that one.
Long JADE & FUQI.
GLTA
