Ziyang Ceramics Corporation (fka ZYCI)

[Tex]

re the next Q's number

Had the BigTree project worked -- that is, had Big Tree not failed to deliver auditable accountings of its financials -- CAAH would be enjoying a profit. With only part of CAAH's cylinders firing (or, missing the backup motor, or whatever you want to call it) I think CAAH will be working pretty hard to do better than merely neutral this Q.

I think wild growth will require another attempted acquisition. The share issuance was calculated around two Chinese operating units, and it's only got one to push profit into all those shares.

CAAH might pull off a thin profit, but I'm betting a first loss-free quarter.

The next thing to keep in mind is that CAAH's share count (based on the issuance last year) was expected to be boosted by the income of two China operations. With just the one operation, we're going to see CAAH shares that are instead "boosted" by CDS holdings, which though for sure an excellent long-term bet, haven't been understood or appreciated on Wall Street as a high-quality asset.

Take care,
--Tex.