Subaye, Inc (SBAY)

[GorillaGorilla]

Hi RealFast,

It's a valid to question the management of MYST, so why not


-- They are posting positive earnings with $12 million AR.
-- You have to question if their revenue is real.
-- This is a web site, not a steel plant.


I am missing your point on AR in relation to earnings...
The AR's work out with a DSO of 114. High, undoubetly, but within Chinese bounds. No doubt this leads to some of the cash problems we are seeing.

For last 4Q's
Sales Per day average 112,738
Average Receivables 12,855,315
DSO = 12,855,315/ 112,738 = 114

Do you have a reason to believe the revenues aren't real? SOHU isn't a steel plant either?


-- They sold 50 million shares to an investor for $3 million in cash (.06/sh). Great -- deal for the investor. He just doubled his money this past week.

They are undoubtedly short of cash. In the recent 10-Q 8 million of the operationaly generated cash ended up as "Deposit for Purchase of Inventoriable Assets" - from what it looks like it a depost for goods distributors - part of their online shopping initiative? They also don't make best usage of their share price they wouldn't be the first Chinese stock to have done this.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6757646-856-172358&type=sect&dcn=0001144204-09-043867


-- They plan to do a reverse split 100 to 1 and then authorize shares to 150 Million
-- post split. Is that 15 billion or 1.5 billion shares in today's figures. I'm
-- confused!

Yup, this would seem to be the biggest risk that the authorized shares would be used wisely. They seem lose with the shares but they also seem to be using them to expand the business. I guess it's the same old question. Do you trust the management? Some do, some don't, <shrug>.


rich