Replies to post #1202 on China Energy Savings Technology (CESV)

[Waitedg]

Coffee221 - I pretty much agree with you. I dig the following out of the two offerings:

1. At present there are 25,421,855 shares outstanding, with 13,805,134 held by the company--or 54.3%

2. The present float is but 11,616,721 shares or 45.7%

3. When the 10,000,000 shares get filtered into the market, the dilution will increase us to 35,421,855 shares--or a dilution to .7177 or 28.23%

4. The 6,050,000 shares of insider sales will decrease the insider percentage from 54.3% to 30.5% based on current 25.42 million shares outstanding.

5. When the full dilution of the additional 10,000,000 shares new offering gets filtered in, insiders should then own 7,755, 134 shares out of a total of 35,421,855 or 21.9% --down from present 54.3%

Am interested in yours and Beigel's take on the effect of all this. Need to think it through. It would appear the stock might be depressed for a considerable time--yet with good earnings really turning this into a value stock as you suggest.

Could see insiders selling into good news. It will be important to somehow track the reduction of insder sales as time goes on.

The stock was consolidating around the $8 level. A .7177 dilution ($8 X .7177) takes us to a $5.75 level.

Did either of you pick up when the 10,000,000 offering will go into effect--also the 6,050,000 offering?

Plan to leearn as I go along here--but definitely will be doing my "bottom fishing" as time goes by. Waitedg