CHBU...Somebody else's opinion....
Posted by: TraderForLife009 Member Level Date: Thursday, July 01, 2010 3:35:33 PM
In reply to: None Post # of 191
What a value CHBU is. Stated book value is just under $0.82 a share. If you take their cash on hand, subtract total liabilities and divide OS you get about $0.6687 a share cash value (which is over 80% of book value.) Also it has been trading below cash value for over two months now.
I think I will buy when I have funds available. Also, SG&A expenses are low at under $300,000 as of the last 10-Q. They do have $450,000 of convertible notes. Not sure why when they have over $9 million in cash on hand. Must have felt that 3% interest was low enough not to pay it off.
The convertible notes are due Sept 29, 2010. If they did convert, which I would expect they will, it would dilute the current shareholders by 1,000,000 shares (convertible at $0.50 a share.) Also, they have 1,378,580 warrants which can be converted into shares at conversion prices between $1-$2 a share. All the warrants will have expired by the end of Oct 2012. Not too bad in the way of potential dilution.
I like the look of the company. Plus, net income went up from $106,916 to $331,808 from the 3 months ending march 31, 2009 and 2010. Retained earnings are a little over $5 million. Not bad at all for a little company.
So, the company has low OS and AS (12,958,574 shares OS and only 100 million shares AS), below book value, book value based on cash on hand is above current share price, company is profitable, earnings are stable, and no dilution and no preferred shares OS.
