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Ecomike

10/19/12 12:32 PM

#567 RE: PieceofPie #566

Well keep in mind that they are not sell and building cells phones, but designing and build and installing complex one of a kind energy recovery systems for one of kind process plants. That process can take a year or more from start to finish on each project. And the profits are not realized until the job is completed and passes final inspections, and operation runs. Some can 18 months!!! So booking an order is 12-18 months ahead of booking profits in many cases. Meanwhile the interest and depreciation on the new plant eats into investor book value, or equity.

This is not one to make a quick buck on unless you know the nitty gritty of daily inside accounting. It may be one to buy the bottom on and wait 3-4 years for it to be rediscovered, and for steady profits to show a trend, and for the China stock fear to abate.