Replies to post #200 on Telestone Technologies Corp. (fka TSTC)

[nole92]

Yes, they could sell it to a bank. I have seen it done in China before, I will try to find an example.

[nole92]

From Sharesleuth:

Telestone is not alone in having large receivables balances with China Mobile, China Unicom and China Telecom.

China GrenTech Corp. (Nasdaq: GRRF), one of Telestone's competitors in the Chinese wireless communications market, said in its latest annual filing with the SEC that it also had a large backlog of outstanding bills with those three companies and their local affiliates.

China GrenTech had $234.8 million in revenue last year, up more than 60 percent from the previous year. The company said it had $197.8 million in gross receivables and $130.7 million in net receivables. It noted that it typically sells some of its receivables to Chinese banks to help maintain its cash flow.

China GrenTech said its receivables turnover was averaging 292 days at the end of 2009, down from 469 days at the end of 2008. The company said $113.4 million of its gross receivables had been outstanding for less than a year. It said $34 million had been outstanding for one to two years, $34.7 million had been outstanding for two to three years, and $15.7 million had been outstanding for more than three years.

The company said $91 million of its receivables had come due under the terms of its contracts with customers, but had remained unpaid.

[tootalljones]

You are one of these new finance type guys....lol! Why would you possibly ask the company to lose millions of dollars? The Big Three are Rock Solid...better than any finance company in the world....