Replies to post #220 on Telestone Technologies Corp. (fka TSTC)

[nole92]

JB,

Assuming they collected all it, you are looking at about $13/share of A/R. $136M of A/R and 10.5 OS.

The long days outstanding is the red flag that needs to be addressed. If TSTC could at least show progress lowering that number it would be a positive sign.

TSTC A/R's are assets and I would consider them 'high quality' receivables. 95% of their business is to major govt assisted telecom companies and would have to be considered low risk IMO.

The question is why is taking so long to collect when the PRC is sitting on tons of cash. I feel a little better because their competition is having the same problem.

nole

[JB3729]

Well, obviously, selling some A/Rs for business expansion didn't make sense to the company. My takeaway from the offering is that they have a very possitive view of their future business prospects.

JB