China Growth Stocks

[pmony5]

TSTC agreed Joe it wont take much to set this off at 5X's this years NET & Big 3 awarding new biz as we speak TSTC has their proprietary WFDS ( only one that complies with Govt Mandate) in long term trials s/b announcing new wins on earnings & IMO Only could be double time if wins are large...

TSTC 1.2 mill short 6 mill Float at 5X's 2010 EPS...

http://www.thestreet.com/_yahoo/video/10897495/tap-into-telestone-china-watch-mail-bag.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1


I don't know how many realize what may happen here with TSTC in long trials with Big 3 for WFDS deployment as #1 solution ( No other choices right now) and last mile access hitting high gear means TSTC could land 1 or all 3 of the Big 3 in China and become a very different co. instantly.... Big 3 spending 10's of Billions of dollars next year & just a small % comes TSTC's way will dramatically alter their Market Cap ...now only 125 million but what about a couple of hundred million dollars for WFDS sales next year ??? plus install labor and other parts ???? TSTC very well could be a $50 next year heck making 23 million this year if they double to 45 million at 12X's earnings would make TSTC a $50 stock...

Smart shorts have been covering slowly as #'s keep dropping every 2 weeks as a big 3 contract of size could turn TSTC into a $20 stock overnight quite easily...

Again though at 5X's earnings and tons of upside potential makes TSTC a great Risk/Reward stock imo....

Just read the 10K & latest 10Q 16-Oct-10 09:46 am Very interesting read seeing how the verbage used from the 10k to the latest 10Q is much more upbeat BUT lists over & over the Jan 2010 China Govt mandate for integrated product for wireless, Internet, TV, and TSTC's first mover advantage and only product that complies....

Now after reading in detail then read the latest PR of their 44 million $$$$ line of credit ??? Why in 10K & Q's TSTC has never utilized more then 5 million in bank loans so ask WHY 44 MILL $$$ Reading between the lines knowing what we know about WFDS proprietary product I think a sales explosion is imminent imo.....

Also of note NOT mentioned anywhere in an effort to increase sales & have a piece of the big 3 Biz for years & years to come look at this in 10Q.....

Capitalize on WFDS Leasing Model

We have recently pioneered a new WFDS leasing model. As opposed to selling our WFDS equipment to carriers, we are testing a leasing model in which we maintain ownership of the equipment installed on the property premise. The Big 3 pays us a monthly fee to “lease” bandwidth on the WFDS solution in order to deliver integrated services to the property tenants. We would in turn share a portion of the monthly leasing fee with the property owners in return for them providing us with space on the property to install our equipment. The Big 3 benefit as well as they will no longer need to pay upfront for the equipment. The leasing model would not only provide a steady revenue stream, it would also yield higher gross margins, and we expect it will be attractive to property owners and the Big 3. We are currently engaged in four pilot projects with the new model.

Some other 10Q Highlights ....

The Chinese government is committed to simplifying the telecommunications industry by standardizing the equipment used in order to create a more competitive market environment. In addition to standardization, there is a near unanimous government support of integration of high-speed Internet, Wi-Fi, television programming, and voice and data networks. In order to accelerate this integration, in January 2010, the State Council issued a directive for the consolidation of China’s three primary communication networks (telecommunications, television & radio broadcasting, and the Internet) into one,

The Chinese government recently issued a directive to integrate 2G and 3G wireless signal coverage, Internet, TV and radio, and voice and data services into a single platform. To help encourage the integration, the Chinese government has committed to provide financial incentives in order to increase competition and meet its projected timetable, which is expected to be completed over the next five years. We believe our WFDS product is currently the only solution in the market that can deliver an integrated service.


We believe our industry leading WFDS solution is the only commercially available solution that is fully compatible with the Big 3’s respective technology requirements and can offer integrated services in a single platform. Our WFDS systems can be deployed in various types of properties. We currently have received 60 patents for WFDS, and have an additional 40 filed patent applications for WFDS under review. In September 2009, WFDS technology successfully passed all United States Federal Communications Commission, or FCC, testing procedures. The FCC certification will not only apply to the U.S. market, but also to our WFDS products in Central and South America. We expect to gain significant traction in the indoor wireless coverage market through our first mover advantage.


We intend to increase our international presence over the next few years. We have already established partnerships with, and will continue to find and train value-added resellers and systems integrators in international markets to sell our solutions. We currently have six sales offices outside of China and intend to increase this number in the near-term. While we currently generate less than 5% of our revenue from sources outside of China, we expect the international market, especially the U.S., will represent a significant growth opportunity for us in the future.