Shareholders Unite

eFuture: Improved Fundamentals Driving Growth

To be honest, we are following the story but advised to take profit at $10.5. There something we don't like at present. New license sales were down 34.5% in Q1, and these drive future recurrent revenues in the form of service fees. This could be just a one-off (and since this quarter is so small, it's more prone to these aberrations, if this indeed is one), but until growth resumes, we think it's dead money at best. We don't deny it's cheap at these levels, but we have to see improvement in that number before we know the uptrend can resume.

Otherwise a good article though.

eFuture's Cash Cow Keeps Getting Fatter

We have covered the company several times in the past, and continue to be bullish on it. It's an early stage opportunity, it's in a growth market (SCM is in it's infancy in China, relatively) it executes well and has very favourable financials. It's one of those sleeper companies that does nothing for a long while (now battered by the bear in China) and then suddenly burst to life. The latter will come, no doubt.
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