Seeking Alpha

Alberto Abaterusso

 
View as an RSS Feed
View Alberto Abaterusso's Comments BY TICKER:
Latest comments  |  Highest rated
  • China XD Plastics Company Ltd.: Are Sales So Plastic That We Can Make An Assessment For This Stock? [View article]
    It seems that during the Q1 2013 Results - Earnings Call Transcript (http://bit.ly/18Mwftw) the questions were made just to get the answers to the doubts I raised in my piece. The answers don't dispel my doubts. Not at all.

    Here are some:


    Question comes from GHC Capital: I was wondering if you could give me some sense of what your gross margin goals are […].

    Answer: our gross margin goal for this year is to achieve above 18%.


    Question comes from Hua-Mei: you are spending a lot of money on R&D to create higher value-added products. So, why does the margins go down and why is your long-term goal for lower than historical margins if you are creating more value-added products?

    Going back to the question Glen asked before. If we were looking three years from now where would margins be?

    Answer: Okay. Let me consult the question to our Chief Operator Officer Mr. Ma. Hi Peter, both Chairman Han and Mr. Ma, thank you for your questions. And they believe this is a very good question.

    So, three years from now, that will come to a time that our Sichuan production base is up and running. And we believe over the two years, we will be able to develop and expand our customer base and also offer more products available to the markets. So, in general, we expect gross margin to improve from here. […]

    we are confident that our gross margin three years from now will improve on average about 1% to 2% every year to be at least 20%


    Question: Great. And also in terms you talk about the capital expenditures needed both in (indiscernible) and in Sichuan, do you have enough capital, can you run through how you are going to finance all that?

    Answer: Yes, we are very confident we have sufficient capital to fund those CapEx. So, for example, the cash and also the bank deposits we have at the end of first quarter is over $200 million, and we expect because we are also taking initiative to improve our cash flow. And we believe with both the cash we have and also cash flow to be generated with some additional bank borrowing. We don’t think there is any problem of timely to fund our expansion both in (indiscernible) and Sichuan.
    Jun 16 01:39 AM | 2 Likes Like |Link to Comment
  • Is Goldcorp A 'True Bargain' For Our Non-U.S. Investor? [View article]
    Different tax rules, it is for sure one. But also the reason I replied to stv_rob63.

    Thank you for your question.
    Nov 13 05:18 PM | 1 Like Like |Link to Comment
  • Is Goldcorp A 'True Bargain' For Our Non-U.S. Investor? [View article]

    Each well diversified portfolio of European investor must contains some gold. It is almost a tradition for us.

    Thank you for your question.
    Nov 13 05:10 PM | 1 Like Like |Link to Comment
  • China XD Plastics Company Ltd.: Are Sales So Plastic That We Can Make An Assessment For This Stock? [View article]
    Hi grf75ar,

    Thank you for your comment.

    I will consider it.
    Nov 2 08:18 AM | 1 Like Like |Link to Comment
  • Geo Arbitrage: U.S. Insurance Company, European Price [View article]
    Nice piece. Thank you.
    Oct 9 08:36 AM | 1 Like Like |Link to Comment
  • China Xiniya Fashion Limited: Can We Look Into This Made In China Stock Without Prejudice? [View article]
    "EVERYONE knows that these two company are fraud''.

    Who is everyone?
    And why do they think it is a fraud?
    May 11 09:38 AM | 1 Like Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    I have no positions in any stocks mentioned and I never had one.
    Jul 29 04:43 AM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    How will the management use the money raised through the issuance of corporate debt? In my opinion this is the matter of interest for any investor (the topic of my article). With the issuance of senior notes if the company has found a specific investment opportunity that make the stock capable of investing retained earnings at a return which is higher than the'' normal'' rate of capitalization (see http://seekingalpha.co...), this kind of investment decision will be justified by the results even though a short-term debt at 7% apparently seems to be more convenient than a long term debt at 11.75%.
    Jun 5 08:42 AM | Likes Like |Link to Comment
  • China Xiniya Fashion Limited: Can We Look Into This Made In China Stock Without Prejudice? [View article]
    Hi User 9636831, why are they hesitant to buyback or issue annual dividend?

    Thank you.
    Apr 8 09:57 AM | Likes Like |Link to Comment
  • Biotechnology Micro-Caps And Their Lack Of Liquidity: How To Make A Virtue Out Of Necessity [View article]
    x bullchin, GreenGrowthGeek and Crazysight: thanks for sharing.
    Mar 27 06:07 PM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    For Lrr12: Richard X Roe has expressed his own opinion like the others. If you have got a different one you can post yours here. The purpose of my article and the consequent debate should be, in my opinion, to provide a background broad enough to include what it might be for the shareholders after this issuance of senior notes (from good signs to red flags for the shareholders). I think anyone interested in this stock has the right to be informed as much as possible on what might be the pros and cons for the shareholders after the issuance of this debt.
    Mar 22 05:42 AM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    Richard X Roe: and how do you interpret the fact that CXDC amended the maturity date of series D junior convertible preferred stock to be February 4, 2019 (same maturity's year of senior notes)?

    Thank you.

    Source: http://bit.ly/1llxi9Q

    Mar 20 10:22 AM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    Richard X Roe, which consequences you think the issuing of senior notes by CXDC might have for the shareholders?

    Thank you.
    Mar 19 04:39 PM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    I see things in a wider range than you do because we use a different approach in analyzing this company's figures. You take them at their word, me not. But not because I have some prejudice towards this company or its management. If I am looking for investing opportunities where to put my money on, I prefer to be critical as much as possible because if the investment doesn't go in the way I expected I don't want to blame myself because I was not prudent enough as investor. I use this approach with every stock.
    Concerning receivables and sales I am with Richard X Roe (see commentator's question below), but again not because I have some prejudice but because it is my approach in analyzing company' figures.
    Concerning the question to the management why they are issuing guaranteed senior notes at a rate of 11.75% due in 5 years when they can borrow from banks at 6%, I think it wasn't necessary to ask them. I believe that for the company a 11.75% loan to be paid back in 5 years is more opportune than a 6% loan to be paid back in 1 year.
    In my opinion the management's answer to your question was easily expected.
    Welcome to Seeking Alpha platform as I noticed from your number of comments posted to date that you are new here.
    Mar 18 06:25 AM | Likes Like |Link to Comment
  • China XD Plastics Incurs Long-Term Debt: Some Scenarios [View article]
    Thank you for your comment Micro_Cap_Maven,

    I think I have provided a background broad enough to include what it might be for the shareholders after this issuance of senior notes.
    Mar 17 12:44 PM | Likes Like |Link to Comment
COMMENTS STATS
93 Comments
7 Likes