Replies to post #42199 on Value Microcaps Motherboard

[abh3vt]

I know the NY Global Group sold a good chunk of BBC on the way up...

2morrowsgains, can you please show me where this occurred? I'm aware of the fee paid to this group for helping to place the shares among institutions, but I don't see where they sold shares...

Here's the fee arrangement:

"(e) The Group has an oral agreement with the Beijing office on New York Global Capital, Inc. for the payment by the Group of a corporate finance fee of $300,000. The fee is conditional on Admission taking place."

-from the Form 4241B filing in conjunction with the shares being placed on the London stock exchange (AIM)

I don't see any Form 144 filings for NY Global. There were some 144 filings from some of the early institutional investors in BBC:
http://www.nasdaq.com/asp/Holdings.asp?symbol=BBC&selected=BBC&page=holdingssummary

I think the info in the NYPost article was largely rumor and innuendo. The fact that some promoters of the stock have been fined for previous transgressions shows poor choices from BBC on who they should represent them to the US market. But what accounting issues did Byron say were actually wrong? Net margins are high, but so are those of a lot of Chinese stocks. There is near universal distrust among Western investors of the numbers reported by Chinese companies and the motives behind their major insiders, so they will continue to get a low forward multiple. I think this shows that Chinese companies are lean compared to their Western competitors. The fact that high margins are not uncommon makes me believe that the net margins are real and more likely due to the high barriers to entry in the Chinese markets, not accounting trickery.

The most damning thing that I saw in the NYP article was actually his retraction of an earlier statement:
"Correction: In last week's column a February stock sale by Bodisen Biotech was mischaracterized as unregistered private placement when it was actually fully registered. "

I think BBC was overbought and overvalued in the 20s. Now that it dropped back below 10 I added some shares. Company management has issued its statements that reiterated earlier guidance and maintain that some of the concerns regarding the health of the CEO and the road work going on outside its HQ shouldn't disrupt the operations of the company to materially impact future results.

While this is expensive on a TTM PE basis, I think a decent Q1 report will send this back into the 15-16 area again. Q4 was impacted by additional selling expenses and one-time int expenses on convertible debt conversions, so they may be able to hit their net margin projections for FY06.

[2morrowsGains]

BBC...No sign of NY Global Group selling BBC shares. Do they even own shares? Maybe it was SovGEM, but even that I can't find. (I think SovGEM had 70k BBC stock as of December 9th 2005. Don't know what they started with).
Maybe I'm just mixed up and a little nervous after seeing all the lawsuits pop up on CESV after they were halted months ago. (Had that one at one time but sold before the halt).
Oh well, if I find anything I'll post.
Thanks for pointing that out abh3vt.
The article now has me wondering what HRBN & their CEO was doing with BBC shares anyway?? Anyone have an answer?