You got that right!!! I did some quick math to calculate book value (BV) per share. Total assets of $25,987,410 minus goodwill, intangible assets and liabilities of $8,057,141 equals a BV of $17,930,269. Take the BV and divide it by the number of outstanding shares 1,493,641,196 and BV per share equals $0.012!!!! The current share price is $0.0006. BV is exactly 20 times the current share price! In other words the current share price is trading at a 95% discount to BV. And CCTR is a profitable company! Hell, CCTR net profits increased 111% year over year factoring in the effect of the dollar Vs the China RMB! Most profitable companies trade at a multiple of BV, not at a percentage of BV for crying out loud!
To give you an example, Apple's current BV per share is $58.17 and the stock is currently trading at $327.46. That's a multiple of 5.63 times! Now, of course CCTR isn't a Wall Street darling like Apple! But for argument's sake, if CCTR was trading at the same multiple of BV, CCTR's current share price would be $0.06756! That's 112 times higher than it's current price!!!
You know, the bashers like to point out CCTR's dilution, and I agree, it's a lot!! Heck, it went from 234 million shares outstanding in 2009 to 1.5 billion shares in 2010! That's a 540% increase in shares!!! That's huge!!! BUTTTTTT, the above BV of CCTR ($0.012) already takes that 540% dilution into consideration so the bashers argument is a moot point in my opinion.
Yeah, I feel sorry for anyone who bought CCTR at a nickel and rode it all the way down to .0006. They lost their ever loving arses, and I'd be bashing this company too if I was foolish enough to do the same. But a lot of us folks just got in recently in the .0005-.0008 range (myself included), and for those of us, there is HUGE upside potential!!!!!
I'm currently sitting on 8.5 million shares so each .0001 tic up or down equals $850 bucks. My $6,200 gamble could mushroom to $85,000 if the share price ever makes it to a penny (which is still less than actual book value). In my opinion, us longs have a lot to be happy about after seeing this report!
Does this mean that on Monday the share price must go up? Hell no! The MMs may manipulate the price even lower to shake the tree even more of weak hanging fruit, but if that happens I'll simply add to my position. Because now I'm armed with the truth of knowing current BV. Yeah, the bashers will rebut, "Man, you're naive if you think what you read in that report is the truth". I'm not naive, that SEC filing can be full of lies. But it's the best any outside analyst has to go on. So just as I can't prove it's 100% accurate, neither can the bashers prove it's 100% false. And because of the risks involved, that's why CCTR trades on the pinks under a penny rather than on the NASDAQ.
Should be interesting on Monday! Remember, should this pop, take some off the table to lock in some gains and let the free chips ride. No stock goes straight up or down. You have to buy and sell on the right sides of the zigs and zags to make money in these. Never hold long term or you'll end up disgruntled like the bashers after CCTR dilutes this stock another 540% by the end of this year.
Just my humble opinions. By all means, do as what suits YOU! It's every man, woman, and child for themselves! Ultimately we can only blame ourselves if we make bad decisions. But conversely, we can take all the credit too when we make the right decisions!
