Replies to post #3293 on Kun Peng International Ltd (KPEA)

[Potse]

Growth potential looks fantastic.....

So looks like they used the term "comprehensive income" for "gross profit", which obviously have nothing to do with net income or anything alike and is therefore extremely misleading the way they used it. Not too happy about that to be honest. But the stock did well since they released the report lol. The OTC has always been weird.

The wording/numbers do seem pretty strange and confusing. I spent a fair amount of time trying to figure it out, but I think I came away even more confused than when I initially started. Not sure what to make of that.

Having said the above, I remain extremely bullish on CXKJ after reading through this Q3 report. I think I mentioned in a previous post that I was looking to get a minimum of $2 per share on most of my position, and I am still sticking with that price area.

The usual risks apply here: escalating tensions between China and the United States, regulatory roadblocks, cash/financing needs of an early-stage company, etc.

CXKJ has an extremely hard-working CEO at the helm. She seems really impressive to me. Excellent initial post-RM share structure with legacy shareholders retaining more than 14% of the company. Very good chance we will see merger/acquisition activity in the next year or so. 8% of CXKJ is owned by the company that constructs/places/maintains the physical kiosks for CXKJ, and that company has been very supportive of CXKJ. Deferred revenue in Q3 showed a massive increase to $1.78 million. The potential for some solid-to-explosive revenue growth exists here as the business expansion accelerates.

Definitely a high-risk kind of play, but overall I really like the set-up here.