Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Techguy: We did not insult anyone. What I did was to state the substantive facts; facts that are more important than the numbers. If you or anyone else are insulted by these hard facts, it is your problem. Let me restate the facts: 1. "AMBO has no internal control, in all material aspects.". This is the sentence in auditor's report. When auditor wants the documents to proof the revenue or earnings numbers, the company simply can not provide. Go to read p.97 of 20F form. 2. The fraud investigation in the sec document (form 9). Go sec.gov to find it by yourself. If you think these key facts are not more important than the "numbers" that the company has reported. Go ahead and buy the stock. It is on sale and it gets cheaper by the day. Good luck and best wishes for your endeavor.
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Richard, you did the right thing. I think that most of the participates of the market do the same thing. The market does not miss it. It is the author of this article who is still clueless after another 50% drop of the stock price. he is completely in the dark.
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Garbage in, Garbage out! It is waste of your time on writing it and waste of reader’s time on reading it!! One time when I did a physics lab at college, the requirement is that the final result to be accurate to the first decimal position and experiment result to be accurate to the second decimal position. But, I only achieved to the accuracy to the one’s position in my experiment. The instructor gives me a D on that lab report. The final result is meaningless if the input numbers are not accurate. It is “Garbage in, Garbage out.”. Many Chinese reverse mergers and small caps are traded at PE 1 or 2. They look like great values on the numbers. But, who cares if the numbers are not trustable. AMBO is no different from other Chinese small caps with no internal control and the on-going fraud investigation.
Quote: "While it's easy to fake GAAP earnings, you can't really fake cash flow. The business either generates cash or it doesn't. The big 4 auditors of both AMBO itself (PWC) as well as Baring Asia Private Equity verified that cash flow for us." If you really believe what you said. You should buy CCME at $0.02/share. It generated $30 mil cash flow a quarter and has $170 mil cash in the bank. AND these are all verified by a big 4 auditor. What a bargain!!
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
I agree with BEA completely. I do not trust Price WaterHouse in auditing AMBO the same way that I did not trust Deloitte Touche Tohmatsu in auditing CCME. I do not trust Barring Asia the same way that I did not trust AV Star (invested $30 million in CCME). I do not trust World Bank the same way that I did not trust any other big banks that issued tones of subprime mortgages at the peak of the housing bubble. One gets serious trouble if he follows others blindly in investing. Tow years before CCME crushed, I discovered that CCME has to be a fraud through my own analysis based on simple facts and logic. I did not cared for a minute who audited its financials or who invested in it. 99% of investors on ihub disagreed with me at that time and they even banned me from posting. You are right because your facts are right and your logic is right, not because how many people agree or disagree with you. This is my posting on why CCME's revenue can only be a small fraction of its reported numbers. http://bit.ly/Na5ZO7
CFO resignation is always a bad sign. "The company does not have internal control in all material aspects.". How can the CFO file the fillings on time without all proper paper work that supports the revenue or earnings claims?? As a CFO, you are questioned by investors and you are challenged by the lawsuits. You can not meet the deadlines because internal control is a mess. Either he resigned or he was fired, there is no difference. If the financial of a company is a mess, CFO is on a hot seat and usually he is the first one out.
Joenatural: Are you doubling up as the stock drops another 20%? As your original thesis goes, now your profit potential jumps to 140%.
Everybody can tell the Q1 earning is ugly.I do not even look at the reported numbers of AMBO because 1) it is un-audited, and 2) there is no internal control what so ever. The company can basically put out any numbers. A pig is a pig, no matter what lipstick it puts on.
The increased revenue is meaningless without earnings. Let me tell you how it can report any revenue numbers.
Let's see the tuition for one student is $1000 for 3 month tutoring. A 1000 students generates a $1 million revenue. Now the tuition of each student is increased to $2000 and for 3 month tutoring, but each student is offered $1000 early bird rebate (what ever you can call it). Now 1000 student can generate $2 million revenue. The $1 million is accounted as advertising expense. Similarly, AMBO can reports $10 million out of the same 1000 students if it counts $9 million as advertisement and other expenses. Who cares about the revenue if there is no earnings.
Did the resignation of CFO tell you anything? I guess that the auditor resignation will not be far away.
Ambow Education Holding: A High Growth, Deep Value Opportunity With Imminent Catalysts [View article]
“In our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of December 31, 2011.” It is “in all material aspects”, folks!!!; audit firm rarely use this type of strong words. It is not even funny when you say that it is a standard language in annual reports!! For US stocks, the annual report is called 10-k form, if you do not know yet. Please try to find this sentence in the reports of US companies. As BEA has commented, the examples you have given may indeed frauds too, because frauds are rampant in this space. Nobody wants to touch this stock now as evidenced by the dwindling trading volume. The worse than a dropping price is that you cannot sell at any price if you can not find a greater fool when you are trying to sell your shares.
Report of Independent Registered Public Accounting Firm "In our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of December 31, 2011". Is this disclaimer or accusation?? If it is a standard disclaimer as you stated, please find above sentence in the annual report of any of the s&p 500 companies. Let me know if you find one. If you still believe it after the audit firm told you with so blunt sentence, I wish you good luck with AMBO. I believe that most of the investors have got the message. That's why the stock price has not bounced back as you and Joenatural expected.
Ambow Education Holding: A High Growth, Deep Value Opportunity With Imminent Catalysts [View article]
"Anyone with experience reading audited statements will tell you that that's standard language in most audited reports. It's called a disclaimer. "
Really, please find this disclaimer sentence from Berkshire Hathaway's annual report for me. Many thanks.
Also, in Bidu's 20F, it is a general comment about internal control. In AMBO's 20F, it specifically stated that "CEO and CFO DOES NOT expect its internal control is effective". The difference is day and night.
"Once Ambow's 20-F is filed, I look for a very fast ascent to the $6.00 area, as I believe institutional reduction will immediately cease and accumulation of shares will be fast and furious."
Now the F-20 is filed for about a month, the price of AMBO is heading lower steadily. The only thing you got it right in your article is "Fast and furious": the filling of lawsuits is fast and furious!!! The reduction of shares by institution shareholders is also fast and furious. Who is clueless???
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
1. "AMBO has no internal control, in all material aspects.". This is the sentence in auditor's report. When auditor wants the documents to proof the revenue or earnings numbers, the company simply can not provide. Go to read p.97 of 20F form.
2. The fraud investigation in the sec document (form 9). Go sec.gov to find it by yourself.
If you think these key facts are not more important than the "numbers" that the company has reported. Go ahead and buy the stock. It is on sale and it gets cheaper by the day. Good luck and best wishes for your endeavor.
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
One time when I did a physics lab at college, the requirement is that the final result to be accurate to the first decimal position and experiment result to be accurate to the second decimal position. But, I only achieved to the accuracy to the one’s position in my experiment. The instructor gives me a D on that lab report. The final result is meaningless if the input numbers are not accurate. It is “Garbage in, Garbage out.”.
Many Chinese reverse mergers and small caps are traded at PE 1 or 2. They look like great values on the numbers. But, who cares if the numbers are not trustable.
AMBO is no different from other Chinese small caps with no internal control and the on-going fraud investigation.
Ambow Education: 50% Plunge = 100% Opportunity [View article]
If you really believe what you said. You should buy CCME at $0.02/share. It generated $30 mil cash flow a quarter and has $170 mil cash in the bank. AND these are all verified by a big 4 auditor. What a bargain!!
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
http://bit.ly/LwlFuz
Why The Market Is Missing The Point On Ambow Education, A Strong Buy [View article]
This is my posting on why CCME's revenue can only be a small fraction of its reported numbers.
http://bit.ly/Na5ZO7
Ambow Education: 50% Plunge = 100% Opportunity [View article]
Ambow Education Holding: A High Growth, Deep Value Opportunity With Imminent Catalysts [View article]
Ambow Education: 50% Plunge = 100% Opportunity [View article]
Everybody can tell the Q1 earning is ugly.I do not even look at the reported numbers of AMBO because 1) it is un-audited, and 2) there is no internal control what so ever. The company can basically put out any numbers. A pig is a pig, no matter what lipstick it puts on.
The increased revenue is meaningless without earnings. Let me tell you how it can report any revenue numbers.
Let's see the tuition for one student is $1000 for 3 month tutoring.
A 1000 students generates a $1 million revenue.
Now the tuition of each student is increased to $2000 and for 3 month tutoring, but each student is offered $1000 early bird rebate (what ever you can call it). Now 1000 student can generate $2 million revenue. The $1 million is accounted as advertising expense.
Similarly, AMBO can reports $10 million out of the same 1000 students if it counts $9 million as advertisement and other expenses. Who cares about the revenue if there is no earnings.
Did the resignation of CFO tell you anything? I guess that the auditor resignation will not be far away.
Ambow Education Holding: A High Growth, Deep Value Opportunity With Imminent Catalysts [View article]
It is “in all material aspects”, folks!!!; audit firm rarely use this type of strong words. It is not even funny when you say that it is a standard language in annual reports!! For US stocks, the annual report is called 10-k form, if you do not know yet. Please try to find this sentence in the reports of US companies. As BEA has commented, the examples you have given may indeed frauds too, because frauds are rampant in this space.
Nobody wants to touch this stock now as evidenced by the dwindling trading volume. The worse than a dropping price is that you cannot sell at any price if you can not find a greater fool when you are trying to sell your shares.
Ambow Education: 50% Plunge = 100% Opportunity [View article]
"In our opinion, the Company did not maintain, in all
material respects, effective internal control over financial reporting as of December 31, 2011". Is this disclaimer or accusation??
If it is a standard disclaimer as you stated, please find above sentence in the annual report of any of the s&p 500 companies. Let me know if you find one. If you still believe it after the audit firm told you with so blunt sentence, I wish you good luck with AMBO. I believe that most of the investors have got the message. That's why the stock price has not bounced back as you and Joenatural expected.
Ambow Education Holding: A High Growth, Deep Value Opportunity With Imminent Catalysts [View article]
Really, please find this disclaimer sentence from Berkshire Hathaway's annual report for me. Many thanks.
Also, in Bidu's 20F, it is a general comment about internal control. In AMBO's 20F, it specifically stated that "CEO and CFO DOES NOT expect its internal control is effective". The difference is day and night.
Ambow Education: 50% Plunge = 100% Opportunity [View article]
Now the F-20 is filed for about a month, the price of AMBO is heading lower steadily. The only thing you got it right in your article is "Fast and furious": the filling of lawsuits is fast and furious!!! The reduction of shares by institution shareholders is also fast and furious. Who is clueless???