Replies to post #24202 on Hong Yuan Holding Group (HGYN)

[izler]

Wouldn't they want to boost the PPS before the R/S to get the most out of the split so after the price goes down they will still be above the $5.00 threshold and anyone who is still holding by then will be stuck holding? Just a thought from the fundamental aspect.

[Carter]

"If CERP had $50 million in revenues it is possible that they would still lose money."

flaflyersfan, it's also possible they would turn a healthy profit. The truth is, you don't know. The key issue for CERP was not their debt. Companies operate with debt all of the time in growth phases. Their problem was the outstanding Accounts Receivable balance - the non-paying European customers - which then triggered the debt problem. 7 and 8 figure revs, with the right payment terms, could right the ship. And yes, that is a longer-term outlook, deeper into 2013, and there's much that could transpire in the shorter term.