Replies to post #58641 on China Growth Stocks

[Traderfan]

TSTC, yes you are right on the logical side but that doesn't make it less problematic. You have to finance your working capital and with AR's going through the roof like this someday not even the 44 million loan agreement with a bank will be enough if you get my point.

[bunky]

thank you...now i see...am buying today...


CharlieB

[bunky]

thank you...n

[researcher59]

pmony: TSTC has a serious accounts receivable problem, imho. Revenues through 9 months of 2010 were $71 million. For all of 2009 revenues were $72M. Currently a/r stands at a staggering $134M, very nearly equal to the total revenue of $143M reported for the past 7 quarters.

Very clearly they have accounts receivable that have been outstanding for well over 2 years, unless they haven't yet collected a penny on the revenues of the past 7 quarters.

A lot of Chinese companies have large a/r balances with very high DSO's, but TSTC is the worst case I know of ....

I think large a/r writedowns are lurking ahead .... in which case, past earnings have been significantly overstated.

[derek2000]

TSTC - One accounting question: if the contract term comes with 12 month payment schedule, what is the best OR right way to realize the revenue:

1) Realize the revenue NOW and have a big A/R, or
2) Realize the revenue per contract terms. This may delay some rev. but there would be much better A/R. Will this improve the cash flow situation?

Thanks.

[lostmyballs]

TSTC ,people have been questioning this since tstc traded at 4-5 dollar range...Thats when i got in for the first time...Check yahoo ,i post under ajjones22156..some posts from august 09



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