Comments on Cabeza Howe's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/cabeza-howe/articles http://seekingalpha.com/article/38073-cgg-veritas-a-veritable-bargain?source=feed#comment-571628 571628 Thu, 02 Jul 2009 11:53:32 -0400 http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-474761 474761 Thu, 23 Apr 2009 16:04:34 -0400 http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-473763 473763 Thu, 23 Apr 2009 04:26:09 -0400
Even if their products are scams they could go on like this for years. For shorting in this environment I require falling sales, a lousy business model, a bloated balance sheet etc... ]]> http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-473525 473525 Wed, 22 Apr 2009 21:20:30 -0400 http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-473463 473463 Wed, 22 Apr 2009 20:06:46 -0400 http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-473356 473356 Wed, 22 Apr 2009 18:07:25 -0400
I am an investor in the company because I know that the patch works. I have friends that have taken it and it has worked, however for other it hasn't so it all depends. There are many factors that can cause it to not work. Maybe body size, eating habits, dosage, abnormal health conditions, etc...

As for the financial statements, I do think that they should hire a top 10 accounting firm that would definitely cast all doubt away. However what make me feel comfortable is that the consulted with the SEC in the last delayed filing and the the SEC gave them guidance on what to do and the result were quite impressive. They've had 3 accounting changes so one more to a top 10 firm now that they can afford it, will be a really good.

The company has really expanded their product portfolio so I expect sales to continue to increase and I'm looking forward to the Test Kits. The market is untapped and CSKI has a first mover advantage.

I also like the fact the the government keeps giving the company free money (grants).

I would need more of a reason to sell my position than some customer complaints.]]> http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-473259 473259 Wed, 22 Apr 2009 16:53:50 -0400
Regarding CSKI. I can't say it better than China Expert.

MSPC is a well respected international auditor group - certainly one of the best international auditors working in China. Do you pretend that this auditor has wrongly certified CSKI's impressive cash reserves and cash flows?
]]> http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-472733 472733 Wed, 22 Apr 2009 11:52:07 -0400 http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-472274 472274 Wed, 22 Apr 2009 08:02:32 -0400
1) regarding the auditor, most Chinese company's are introduced to auditors by their equity sponsors and often times low cost is a key selling feature early on. Only later does a company realize the importance of having an auditor with credibility and reputation. I dare anyone to show me an auditor with an unblemished record. It doesn't exist. As for China's Sky's auditor MSPC (affiliate of Moore Stephens), with 12 principals and over 80 employees this is a major upgrade from its previous auditor, Sherb.
2) As for it products and markets.... that's the nature of the company's business. I must admit I question Slim Fast, but that product did not hurt Unilever Incorporated to realize billions in sales. Or how about Chattem's (CHTT) sales of Dexatrim ? and Garlique ? Who knows if they work, yet Chattem is worth almost $10 billion. As for questionable marketing .... check out the multi-billion infomercial business we have in the USA. How much of that garbage works ? How about a glove that peels potatoes quickly ? Yet, the business according to a recent Forbes article generates hundreds of millions in profits. The skill here is to find new products that appeal to the mass. Do you think the FTC and FDA are not looking at many of these products for infractions ? My primary focus on CSKI would be to validate that the $40.3 million of cash on the balance sheet really exists and the $36.8M of 2008 EBITDA was "clean" and "scrubbed". If the high margins, attractive balance sheet and significant free cash flow generation is accurate, than the shorts will have to maintain a very long term conviction that they are correct. The shorts should look at an array of Chinese small caps and they will see that "finger pointing" is possible at each and every one. On occassion one implodes but I personally don't have a lifetime to wait for the "event" to make the gain from a "short" to happen. To me, the CSKI "bear" case is pretty weak. ]]> http://seekingalpha.com/article/132261-revealing-the-shoddy-practices-of-china-sky-one-medical?source=feed#comment-472256 472256 Wed, 22 Apr 2009 07:33:54 -0400 valueblockbusters.blog... or my SA Instablog (seekingalpha.com/autho...)]]> http://seekingalpha.com/article/129921-three-reasons-to-heed-china-sky-one-medical-s-10-k-filing-extension?source=feed#comment-468688 468688 Sun, 19 Apr 2009 14:10:18 -0400 First, have a look at CRTP's (China Ritar Power Corporation) filings. When the net income threshold was met, the company treated the shares as an expense equal to the amount of the market value of the shares for the amount of the grant-date value of the shares as of the date that the Make Good Agreement was signed. CSKI should have done the same thing. Of course, that would have wiped out the company's earnings on a GAAP basis. In its press release, the company never said that its earnings were on a non-GAAP basis.

I sent an email to IR on April 8. They never replied to me.

]]> http://seekingalpha.com/article/129921-three-reasons-to-heed-china-sky-one-medical-s-10-k-filing-extension?source=feed#comment-455047 455047 Tue, 07 Apr 2009 12:53:51 -0400
The company upgraded its auditor in two steps from an unknown local Chinese firm to a well regarded international audit organization. That was clearly a positive and not a negative development.

The company's independent directors have a scientific orientation. It would indeed be preferable to have one or two US based independent directors with a financial background. Maybe Mr Qui Feng is a talented individual able and willing to rise to the task. Maybe he has been put on the audit committee because he is fluent in English and can better communicate with the international auditors.
]]> http://seekingalpha.com/article/27433-will-2007-be-the-year-of-far-east-energy?source=feed#comment-319319 319319 Tue, 02 Dec 2008 19:56:13 -0500 http://seekingalpha.com/article/38073-cgg-veritas-a-veritable-bargain?source=feed#comment-202867 202867 Fri, 11 Jul 2008 09:28:31 -0400 http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-196351 196351 Tue, 01 Jul 2008 02:36:12 -0400 http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-194569 194569 Fri, 27 Jun 2008 22:27:06 -0400
I certainly have noticed the significant inventory buildup in the two most recent quarters. It certainly does not feel pleasant. But note that 69% of the inventory was on raw material build up (as of 3/31/08). When you look at the recent crop price super-inflation, it is not hard to understand why companies are stocking up on these raw materials. Otherwise, they might be facing declining gross margin going forward if crop prices keep on rising. Current inventory takes roughly half a year to move through, which might still be manageable. Also if you just look at the finished goods, Q1 (53 days turnover) had a slight improvement compared to Q4 (59 days). So the products still appear to sell fine.

That said, the inventory deserves close watch in the following quarters. On the other hand, the current price level might have built in some discount for certain risks.]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-194137 194137 Fri, 27 Jun 2008 10:45:20 -0400
have you noticed the huge increase in inventories from the quarter ending 2007-03-31 to the last quarter ($1.29M to $8.68M)? Revenues increased around 30% ($1.66M to $2.11M) in the same period but inventory shot up 600%

disclaimer: i own cyxi shares]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-192277 192277 Tue, 24 Jun 2008 22:55:20 -0400
Again, it's really good to have you back in the game. ]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-192239 192239 Tue, 24 Jun 2008 21:50:30 -0400
Thanks for the comments. The PIPE investors themselves are all underwater now, since their bets were at $1 a share. Their warrant exercise prices are $1.5 and $2. So the overhang is not a threat at this price level. Furthermore, those investors cannot sell their shares until the share registration (last filed in April) is declared effective by SEC.

Regarding the CFO appointment, that indeed should have addressed one of CYXI's weak spots. If the CFO is good and can communicate the company's vision and business strategy effectively to U.S. investors, we small fries will soon be rewarded.

Happy investing and best regards.

Cabeza]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-192233 192233 Tue, 24 Jun 2008 21:37:06 -0400
CXTI has got virtually zero media coverage in China, leaving no paper trail to indicate its legitimacy.

In the case of China Yingxia, Mrs. Jiao herself has won numerous provincial and national awards and recognitions. Perhaps the top recognition she has ever won was the 2004 Top Ten Business Talents, which put her name side by side with the likes of Mr. Liu Chuanzhi (former Lenovo Chairman/CEO) and Mr. Zhang Enzhao (former China Construction Bank Chairman).

Mrs. Jiao is well followed by the media. She is one of the role models of the Chinese woman entrepreneurs. You will also be able to follow previous media reports to reconstruct CYXI's growth history.

On the CYXI-Sanitarium agreement, it was signed on the well-known Harbin Fair a week or so ago. The event/agreement was reported by many official organizations, like provincial and national Green Food organizations and agricultural departments.

The link I gave above, Life Daily, is an official publication of Heilongjiang Province's Heilongjiang Daily Group Limited.

CYXI is simply one of the few Chinese OTC companies that you can invest with piece of mind knowing there is no likelihood of a fraud.]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-191989 191989 Tue, 24 Jun 2008 14:56:01 -0400 http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-191812 191812 Tue, 24 Jun 2008 11:39:14 -0400 http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-191804 191804 Tue, 24 Jun 2008 11:33:39 -0400
I'm working off of memory in the last comment, so I could be wrong. ]]> http://seekingalpha.com/article/82432-cyxi-a-growth-stock-trading-below-book-value?source=feed#comment-191785 191785 Tue, 24 Jun 2008 11:19:23 -0400
Does the stock still have that incredible overhang of low priced shares and options? If so, how low is the option exercise price?]]> http://seekingalpha.com/article/34790-chinese-industrial-waste-management-a-microcap-cash-cow?source=feed#comment-175793 175793 Thu, 29 May 2008 07:31:52 -0400 http://seekingalpha.com/article/26435-far-east-energy-seeing-the-light?source=feed#comment-173925 173925 Mon, 26 May 2008 08:12:26 -0400 http://seekingalpha.com/article/34790-chinese-industrial-waste-management-a-microcap-cash-cow?source=feed#comment-156869 156869 Fri, 25 Apr 2008 18:38:10 -0400 to find a website for them. Do they have one??]]> http://seekingalpha.com/article/58260-china-gaming-giant-interactive-cannot-be-ignored?source=feed#comment-106991 106991 Wed, 26 Dec 2007 21:56:26 -0500 Tuesday November 27, 3:44 pm ET
NEW YORK, NY--(MARKET WIRE)--Nov 27, 2007 -- Abraham Fruchter & Twersky LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Giant Interactive Group, Inc. ("Giant Interactive" or the "Company") (GA - News) American Depositary Shares ("ADSs") pursuant and/or traceable to the Company's initial public offering ("IPO") on or about November 1, 2007 through November 19, 2007 (the "Class Period").

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The complaint charges Giant Interactive and certain of its officers and directors with violations of the Securities Act of 1933. Giant Interactive develops and operates online games in the People's Republic of China. The Company's primary game is ZT Online which is a free-to-play massive multi-player online ("MMO") game.
According to the complaint, on or about October 31, 2007, Giant Interactive filed with the Securities and Exchange Commission ("SEC") a Form F-1/A Registration Statement (the "Registration Statement"), for the IPO. On or about November 1, 2007, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 57 million shares of Giant Interactive's ADSs at $15.50 per ADS were sold to the public, thereby raising more than $886 million. The complaint alleges that the Registration Statement and the Prospectus failed to disclose that the Company had experienced a decline in average concurrent users ("ACU") and peak concurrent users ("PCU") for the third quarter of 2007 due to a significant rule change for ZT Online.

On November 19, 2007, after the close of the market, Giant Interactive issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Among other things, the Company reported that ACU for the third quarter was 481,000, a decrease of 6% from the second quarter of 2007 and that PCU for the third quarter was 888,000, a decrease of 17.2% from the second quarter of 2007. Then, on November 20, 2007, before the market opened, Giant Interactive held a conference call with analysts and investors to review the Company's earnings release. During the conference call, Giant Interactive attributed the decline in the third quarter ACU and PCU figures to a rule change to ZT Online that was implemented to discourage gold farming activity. Following the Company's earnings release and conference call, on November 20, 2007, the price of Giant Interactive ADSs dropped from $14.88 per ADS to $11.10 per ADS on extremely heavy trading volume.

Plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions. If you wish to serve as lead plaintiff, you must move the Court within sixty days of November 26, 2007. To serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham Fruchter & Twersky LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member.

If you have any questions concerning this case or your rights or interests with respect to this matter, please contact plaintiffs' counsel: Jack Fruchter or Ximena Skovron of Abraham Fruchter & Twersky LLP, One Penn Plaza, Suite 2805, New York, New York 10119, by telephone at (212) 279-5050, by facsimile at (212) 279-3655, or by e-mail at jfruchter@aftlaw.com or xskovron@aftlaw.com.


Contact:
Contact: Jack Fruchter Email Contact Ximena Skovron Email Contact Abraham Fruchter & Twersky LLP (212) 279-5050 facsimile (212) 279-3655
]]> http://seekingalpha.com/article/58260-china-gaming-giant-interactive-cannot-be-ignored?source=feed#comment-106938 106938 Wed, 26 Dec 2007 13:47:44 -0500 http://seekingalpha.com/article/58260-china-gaming-giant-interactive-cannot-be-ignored?source=feed#comment-106930 106930 Wed, 26 Dec 2007 13:01:30 -0500