HOUSTON, TX--(MARKET WIRE)--Mar 24, 2004 -- Eternal Technologies Group, Inc. is an agricultural genetics company based mainland China with U.S. office in Houston, Texas. The company is publicly traded in the United States on the (NASD) Over The Counter Bulletin Board under the ticker symbol (OTC BB:ETLT.OB - News). The company is comprised of three main divisions: livestock breeding, livestock processing and bio-technology. In 2002 the company generated over $12 million in revenues and $6 million in net profit.
Livestock Breeding
The company is focused on the production and transfer of livestock embryos in animal genetics industry. In 2000, the company imported superior sheep embryos from Australia and carried out the world's first transfer project of 10,000 breeding sheep embryos in China. Since then, the company began to set up a herd of superior breeding sheep and improve the local breeds. The company has become a leading player in livestock breeding and keeps growing in China's vast agriculture and livestock market. The company is applying mature embryo transfer techniques in the breeding of high-yielding pure-breed dairy and beef cattle. The company offer fine-breed livestock, improved livestock products, and technical support to Chinese customers.
Livestock Processing
The herds of superior breeding sheep have been building up since the company launched the embryo transfer project. Those breeding sheep are used to improve local breeds to meet the requirements of stable feeding and fattening. The processing of lamb meat is a follow-up project of embryo transfer. The company cooperates with local sheep growers. The company promotes fine-breed sheep to the maximum extent by supporting the growers in breeding through fattening. The company contracts the lamb meat processing to slaughter houses and sale of meat to wholesale purchasers.
Bio-engineering/Bio-technology
The company focuses on the application of its gene engineering capabilities in the research, development and future production of biological drugs. Research and development of initial pharmaceutical products is ongoing. The company has made great progress in two programs, genetic-engineered thrombin-like enzymes from adder venom for the treatment of thrombosis and enterotoxin drug targeting tumor cells without harming surrounding normal cells.
The company's future plans are based upon internal growth, acquisitions and offering new products to expanded markets.
The company plans to set up a production base for fine-breed dairy cattle embryos through acquisitions in the United States. Eternal hopes to expand to an international operation and leverage its technological advantages in the production and transfer of superior embryos. Additional acquisitions in pharmaceutical and livestock industries are areas of potential growth optimizing the company's potential.
One area of internal growth involves sheep organs which are by-products of the lamb meat production, are source material for bio-pharmaceutical companies. At the moment, the Company has to dispose of these organs at a low price due to low production. As the company increases the production of lamb meat supplying these organs to the bio-pharmaceutical industry will become commercially viable.
Management Overview
Mr. Jijun Wu, Chairman
Mr. Wu graduated from China Central Finance & Economics University. Mr. Wu became one of the first CPAs in the People's Republic of China. He has significant experience in finance and investments and has held the position of Accountant-General in a state-owned electronics company with revenues of over $1.5 billion and over 200 subsidiaries. Mr. Wu maintains business relationships with more than twenty major banks, consortiums and funds worldwide. Mr. Wu took a lead in planning for mainland enterprises to list on overseas stock markets. He was the consultant to Motorola, NEC, Epson, Yamaha, AT&T, and Panasonic when they initiated investments in the PRC in the early 1980s. He was made an honorary citizen of Houston, TX.
Mr. Jiansheng Wei, Director
Mr. Wei has been engaged in animal husbandry practices and management for over thirty years and has been in charge of several large farms in Inner Mongolia and Hebei Province. He is familiar with advanced husbandry techniques and has significant experience in management, breeding and the introduction of superior agricultural genetics. Mr. Wei maintains close commercial relationships within animal husbandry and business circles throughout Southeast Asia, Australia, New Zealand and South Africa.
Mr. Xingjian Ma, Chief Financial Officer
Mr. Ma joined the Company in 2002. Prior to joining the Company, he was the Chief Financial Officer of a state owned enterprise in the PRC. His background includes finance, accounting, taxation, banking and securities reporting.
Mr. Shien Zhu, Director/Scientist
Associate Professor, Deputy President of Council of China Animal Reproduction Society, and board member of our Group. A doctor from Kochi University and Ehime University in Japan, he specializes in the techniques of early embryo vitrification, freezing, and transfer and of mammal adoscuolation in embryo biotechnology, and has achieved many scientific breakthroughs. He has invented a system of freezing and preservation without the aid of a cooling frigorimeter. This technological advance is characterized by low cost, simple operation and a high embryo survival rate. In recent years, he has had more than 40 articles published in international and domestic journals and published 3 books. Currently, he is undertaking key projects for the country's "Ninth Five-Year Plan."
Industry Overview
The Chinese agricultural industry has historically lagged behind Western countries in the adoption of advanced breeding techniques. By encouraging the adoption of advanced animal husbandry techniques, in particular the transfer of fine-breed animal embryo, the Chinese government is positioning Chinese agricultural businesses to bring the quality and yield of meat production in line with world standards, improving the living standards of the Chinese people.
Key markets that we have targeted in China are mutton and dairy production. China ranks first in the world in both production and consumption of mutton with 2001 production of approximately 2.55 million tons. With China's entry into the WTO and the adoption of advanced animal husbandry techniques, we believe that China can be positioned as a world leader in the production and export of high quality low-cost mutton while meeting its growing internal demand.
Mutton is a popular source of meat in China. It is rich in minerals and trace elements while its cholesterol content is much less than pork and beef. For example, in 100g of meat, mutton has 27mg of cholesterol while beef has 74mg and pork has 74 to 126mg. Mutton can effectively prevent cardiovascular diseases. Thus it is an ideal source of meat for people.
The world output of mutton increased 2% in 2002 against 2001. The output in Asia increased 3% and accounted for nearly 50% of the total world output. Both the supply and demand are on the rise. The price was going up mainly due to the shortage of supply compared with demand. It remained at a high level in 2002 above the prices in recent years.
Chinese dairy production and consumption has lagged substantially behind levels in Western countries. With an improving standard of living and a growing emphasis on health, milk consumption is rising in China and we expect the increase in milk consumption to accelerate. Historical yields from China's dairy herd are believed to be approximately 50% of the yields produced by U.S. dairy herds. With the adoption of advanced animal husbandry techniques, we believe that the quality and yield of the Chinese dairy herd can be increased to Western standards allowing the Chinese dairy industry to meet the growing internal demand for dairy products while reducing the cost of production.
China's pharmaceutical industry is keeping a rapid growth. The annual average growth rate was about 20% over the past 15 years. In addition, the average profit rate of China's pharmaceutical firms has grown an average of 24% for the last trailing five years.
US Market
The United States food processing industry is a multi-billion industry comprised of household names in the consumer markets. Industry leaders include Conagra Foods, Cargill Inc. (privately held), Tyson Foods, Smithfield Foods, Sarah Lee Corp., Alico, Inc. and Pilgrim Pride Corp. Recent Analyst reports from major brokerage houses including Smith Barney, indicate an attractive outlook for the Food Manufacturing Industry due to the stable and significant cash flow along with a solid financial footing for the major sector players.
Posted by Purl Gurl on :
Blue likes this one as well.
It is a company of interest. A bit worrisome in lieu of a long track record. Nonetheless, late last year they did file a decent financial report. There is concern with their current report being late.
Currently tanked to bottom support, my guess is share price will only increase from here. I would expect a moderately good 10Q coming up soon.
This stock is showing up in a lot of threads, and Blue usually picks winners, which is in keeping with Keith often picking winners.
I will be looking at buying on Monday, hedging a bet their coming 10Q will be fairly decent.
Selling meat and related products in China; lots and lots of hungry mouths over there.
I like the embryo end of this business.
Purl Gurl
Posted by Purl Gurl on :
I should add they have a tremendous amount of cash and assets, per their November filing, and very low liability.
This ratio between assets and liablities, is almost too good to be true; causes concern.
Nonetheless, there is no information which would contradict their good cash / asset position.
Purl Gurl
Posted by blue_in_MI on :
eh, as i mentioned in the "Blue HOM" thread, i haven't done too well lately - gave 14% back over the last month alone, in no small part due to ETLT, my worst month in the market ever. rode it all the way up to .57 from .41, now all the way back down, *sigh*.
it's important in looking at ETLT to note their most recent PR - they have basically hit the cancel button on E-Sea. the E-Sea numbers were staggering, and a good part of why i liked them so much. they bought it for a steal, and had it worked out even moderately - ETLT would have been an easy double or better.
frankly, the E-Sea cancellation really cheesed me off. mostly because they acquired E-Sea quite a long time ago, they should have prepared for the filing earlier. there's simply no way to be impressed if you read their last PR, they bungled it. they talk about "We have gone through great efforts to gain the trust of the investing public", in the same PR as they admit their bungling of E-Sea and now they of course have the "E" which doesn't exactly build trust either (see also: ATVEE).
i've called Kenneth Maciora (IR guy) a few times and he has generally been somewhat informative and called me back. frankly am not sure how much my notes from those calls would help now, consiering much of it was about E-Sea.
all that being said, maybe foolishly, i am still going to hold my ETLT. i would be surprised to see it dip much lower. and i do expect their 10K to show good numbers, once it comes out. historically, the last Q numbers have always been their best. also, one mild advantage of canceling e-sea is that the share count should retract to about half it's current amount. so, the cash-per-share and profit-per-share should be ridiculous, perhaps on the order of P/E of 2. only question is - will this help, or will it become another CXTI?
the cash position thing is somewhat of a dual-edged sword: it's of course good they basically are trading at their pure *cash* value after this dip, but a "catch" if you read the 10K closely is that this cash can only be spent in China.
i really don't know what to say about ETLT at this point, also my opinion at this moment may still be colored by my previously liking it so much and still being currently ticked off about e-sea and the late 10K. if pressed, i guess i'd say that i still think it's worth a gamble from these current levels, but i certainly would not put half of all my money into it or anything like that.
Posted by blue_in_MI on :
here is part of my initial email re: ETLT to my dad and brother, followed by my initial "phone call report" with Kenneth Maciora, if it's of any help to anyone. I can't currently find my notes from other calls, sorry. note that in both though, much of it is about e-sea, so this needs to be "filtered out" now. sorry about the sloppiness of the "phone log", i still find it difficult to rapidly jot coherent and complete notes down while calling companies.
--- from email ---
ETLT first off seems to be holding .43 a share in cash, so it's trading not that far above the simple cash it is holding - incredibly rare. on top of that, they have a miniscule PE. they had 29M shares o/s up until they bought e-sea, 44M now. so last year they earned 6.4M profit on 15.5M revs on a pre-e-sea market cap (at today's closing price) of 16.7M. so, a P/E of under 3.
now there are 50% more shares o/s because of issuing 14M shares to acquire e-sea, so of course dilution is generally bad. *but*, in rereading this PR about e-sea several times over, i just have the feeling that the $8M or so they paid for e-sea is chickenfeed, and that e-sea got absurdly fleeced in the deal:
their backlog is big enough that they are producing 100 units a month now, at an average cost of $75k. my math indicates that's $90M revs. on top of that, as near as i can tell, they get 30% royalty on each test performed. dunno how many tests would be done, but - seems like $100M in sales and royalties would be a serious possibility, if not in 2005, then in 2006. and they paid - $8M for it. seems to me like that could be an $8M profit on that $100M revs, at least by 2006. and this is on top of their already quite profitable other businesses, and also doesn't include their expansion plans into the US and other markets, which they seem to be actively planning.
they seem to have 2 "knocks" against them: they are a chinese company so people are skeptical if their finances are the "real deal", and - they sound pretty ridiculous, frankly. their latest PR made me snicker, seriously, it's comical. what the heck is a sika?
however, one of my favorite quotes from "one up on wall st" is on p.131, where peter lynch talks about trying to find the perfect stock, and #1 on his list of characteristics is "is does something dull - or, even better, ridiculous". sika and their other business would seem to qualify.
as for the validity of the finances and balance sheets, hard to tell, but - in this PR:
they do make note of "the company will meet its auditors in the United States to complete its 10K filing on a timely basis" - they seem to have a history of having their finances audited by a US company, not just a chinese one. and - to complete the "ridiculous" picture, in the very next sentence they say "While in Houston, the management team will also attend the livestock show", heh.
---- phone call report ----
**** can you give me more info on e-sea:
how long were they in business before being bought by eternal?
>> didn't know or wouldn't tell me
how many employees?
>> unknown
>> he basically wouldn't tell me much about the e-sea company, was very guarded on details. his main take was that several major companies were looking at acquiring the e-sea technology, but because eternal was chinese - they "beat them to the punch". said e-sea has been quiet about technology. they are currently selling in china, we should be putting out an update regarding that "very soon".
roughly how many e-sea units are currently out in the field, and are they all in china?
>> "many" already in production, and out in the field. would not give me a number though.
did e-sea carry any significant assets or debts along to eternal?
>> could/would not comment
can you tell me more about the form of e-sea: is it a computer hooked up to some handheld sensor, or... what? is there any info/brochure you can send me about it, or a web link where i could obtain more info?
>> was tight-lipped. said that e-sea provided no real info about it on the web etc, and he hinted that this was for patent-protection reasons (or perhaps more aptly, due to the lack of patent protection in china).
is there any kind of patent protection for the e-sea technology?
>> pretty much open technology - no real patent protection in china.
any major competitors? how much does a system and test cost for competitors?
>> no known similar product, but other companies *may* be working on similar technologies. different market than mammography - once an abnormality detected, woman goes for testing. difficult to take over the mammography "gold standard" in the US. my impression was that he viewed this to continue to be used as (a) a low-end screener, in places like china where people simply can't afford expensive mammography machines, and (b) a pre-screener, where people (including in the US) could see whether or not further testing was required. in other words - have an e-sea check first, and if things don't look good - then go for a full mammography.
he seemed to think that the 2 main reasons ETLT might have an edge with e-sea were
(1) the main director - dr. woo (?) - used to be a key ceo at some other medical companies, and maybe had some "inside edge" or something like that (he didn't use those exact words, just my own take on what he was implying)
(2) he stressed several times the alignment with the chinese women's foundation. he said this was a powerful and well-known group in china, and their backing with e-sea was a major factor in their advantage over competitors. he liked this group to the american cancer society in the US.
i feel like i am "missing something": if 1200 units were sold in one year, that would seem to equate out to revenues of $90M. how is the backlog coming along, and are you receiving a lot of inquiries about e-sea? from what countries?
>> real money comes from royalty, similar to cable tv industries: you don't make the big $ selling the cable to box to people, you make it over time on the royalties. etlt is looking for main $ through royalty.
do you feel that the e-sea units will be sold at a profit, or do you plan on selling them for a loss or break-even, and taking revenues from the royalty stream?
>> not sold at a loss - likely a "modest profit", but - looking for main $ through royalties.
**** you seem to be undervalued by a factor of at least 4-5. can you comment on your low valuation? do you feel it's a case of people thinking your numbers are "too good to be true"? do you feel the recent dip to .40 may have been in part caused by the overhang of shares used to purchase e-sea?
he won't comment on what valuation should be, but agrees that significantly undervalued. 3 main factors he saw in the undervaluation of company were:
1. company is in china - normal foreign risk aspect
2. management team, except for corp secretary, don't speak any english. annual meeting was in NYC, all done through translator - was tedious. many institutional investors have called wanting to talk to management, but - is difficult, because of both the time difference and language difficulties. so, really there are no institutional investors at all - it is all small private investors.
3. bank accounts in china - all of their cash is only earmarked for use in china
his hope was that as the US office is announced, ETLT would begin to see market become more and more comfortable with this company, and the valuation would take care of itself.
**** i understand that your large assets of cash can only be used in china. i am unclear on the scope of the restrictions though: for example, how would you pay to have an office in the US? how was the US dairy purchase funded? how would daily operations of a US office be funded? do you plan to issue a large number of shares to fund the US office and/or factory for producing e-sea here? why not just produce e-sea in china, and ship them here?
closed monetary policy - no way to take money out of china. they will have to either issue shares, or do a debt financing. eventually, monetary policy may be opened up. e-sea could be manufactured in china and shipped here. sounded like most likely plan would be to assemble parts in china, and then ship over to us for final assembly. people might more comfortable with the company with a US presence, also.
***** your PR about the US dairy farms mentioned ``We believe that as a result of purchasing a farm in the United States, we will decrease our cost of embryos from approximately US$350 to US$100.'' just to make sure, so your plan is to ship the embryos over from the US, and then raise the cattle on your own land, and then sell them when they are fully grown? what kind of land holdings do you have in china, and what number of cattle could these lands support?
main point was that they would bring embryos from US, implant into herds over in china, to increase quality of herd, yield of cattle, and meat of cattle. he stressed that the main reason is reducing embryo costs. didn't seem to know about eternal's land holdings.
***** are there any other areas where eternal is looking to expand their business?
no current plans, but looking out for new opportunities.
Posted by Purl Gurl on :
Yes, Blue, I read the news on E-sea.
I would rather a company back out of a deal than to get in too deep. Clearly there was something wrong about the deal. We can only guess what that might be.
My hunch is the future will prove backing away from E-sea was a good move.
On investing their cash in China, this works for me. I am not so sure they should try to expand into markets outside China / Asia; there are not as many mouths to feed elsewhere and competition is very high. Additionally, cost of export and tariff fees could be prohibitive requiring they establish all new operations elsewhere; big bucks.
My perspective is many traders are peeved, just as you are, and have sold to get out dropping share price to below market value. I am expecting ETLT to swing back up.
I am sending out notices to friends to buy. I feel that comfortable about this one, well, mostly.
My friends are also being advised upward motion will depend a lot on the late financial report. I am making a bet it will be a decent report, nothing exciting, but a report in keeping with their November report. I found nothing which would indicate their core business would be falling off. At worst, I would expect a "no change" report.
My thoughts on this is ETLT has hit bottom support so loss risk is low, and profit potential is not great but does exist.
Potential for modest profit appears at a minimum to be an upward swing after the "peeved" traders are finished dumping.
Lot of cash, assets, low liability, a product in great demand, billions of buyers, currently at bottom support, looking to swing back up, lot of positives, but only moderate positives.
I hope others will contribute their thoughts on this one. These are tough market conditions and any trading / investment is very risky.
Purl Gurl
Posted by Purl Gurl on :
Forgot to add a note. You can now well understand why Blue most often picks good stocks; he does his homework just as I do. There is no substitute for "going the distance" on research.
Blue, I suspect ETLT has already attained some promises of tax credits and such from Texas, thus their move in Houston to test market lower priced breeding programs, supported by low labor costs over in China.
This meeting "top dogs" in Colorado reads to be a probing of what tax credits and incentives will be offered to ETLT to do business in Colorado.
My personal opinion is ETLT should stay in China for the near term, establish a solid base of operations, then and only then, look at America. ETLT would be making a mistake trying to compete directly with the American beef industry, which is politically very powerful.
However, they do have a lot of cash, if their financial reports are factual. Money talks.
American based audits do lend credibility.
Purl Gurl
Posted by blue_in_MI on :
purl, hope you're right about both it being a good thing in the long run about e-sea, and ETLT having a good risk/reward curve at this point - am still holding my original position.
my other 2 thoughts would be:
* you wrote:
"I am making a bet it will be a decent report, nothing exciting, but a report in keeping with their November report."
their core business is pretty seasonal, i'd in fact be disappointed if their last Q numbers only match their previous Q. historically, unless i'm mistaken, the Q numbers they're about to report have been their best.
* i suspect most of the "peeved" came in at the late 10K, the dip begain before the e-sea news, and ETLT was pretty flat after the e-sea news came out. hopefully this is another sign that it is near bottom, though perhaps more people are in your camp (dropping e-sea was a good thing) than mine (i'm still disappointed).
Posted by blue_in_MI on :
interesting thoughts re: the tax credits and incentives, hadn't thought much about that until now.
also interesting that you don't consider it a negative that the cash can only be used in china, hadn't really thought about it from that perspective either. as near as i can tell, ETLT should currently be trading a few cents under not just their *book* value, but - actually under their *cash* value, unless they have spent a lot of it lately.
Posted by Purl Gurl on :
An attachment of an "E" traditionally will drop stock value by five to ten percent.
I did a work sheet estimate of how much ETLT should have dropped for current events, the E-sea sour, the big E letter and peeved traders.
If you factor a five percent drop for each of the three items, a conservative guess, current share price is just about right; fifteen percent down.
Taken to the extreme, a ten percent drop for each of the three items, then ETLT is holding up well.
I tend to be conservative, as you know.
My hope is to earn ten to fifteen percent profit over the next thirty days. Most likely, that is wishful thinking with markets the way they are.
Still, those three major market factors are of a temporary type. E-sea will fade, the E will be dropped, and new investors will move in. This stock "should" move back up fifteen percent maybe over the thirty days, maybe sixty days.
Incidently, over the past year, and of late, I have pulled all my hair out and ground my teeth down to bare nubbins, worrying over market trading.
Clearly I am a stock market addict.
Here are some I am adding to my live feed for this coming week and near term.
I have previous articles (long back) on DVPC. Should have mentioned this earlier. I think DVPC is about to announce completion of their "to market" natural gas line. Lot of activity and rising share price. I think DVPC will be good for .16 to .20 near term. If they do put out news on the market line, I would expect a very healthy rise in share price.
That pipeline is all they have going of value; make or break situation.
IESV, I am still accumulating at .085 to .09 on a regular basis. Pretty sure IESV will do very well in the long term.
Purl Gurl
Posted by Purl Gurl on :
Blue, much of my positive thoughts are based their cash to liability ratio. However, we only have their November report with which to work. Their financial status may have changed a lot since then.
However, if they are or were burning through a lot of cash, I think this would be announced in news of some sort, or the information would be leaked.
Lots of cash reduces risks of dilution or typical toxic lending we see so often.
Of interest to me is how ETLT came into so much cash initially. Perhaps they have some really major investors? I tend to follow the money.
I am crossing my fingers ETLT is not totally bogus, and they don't seem to be; I cannot find any hints.
Purl Gurl
Posted by Purl Gurl on :
Moving Off Topic for a post,
Blue and Keith, these are stocks I have added to my live feed for next week. They range from low risk to extreme risk, from short term to long term.
Blue, we should have bought your CYSD!
Moved from .40 to 5.00 and now flirting at 4.00 per.
I did not buy on the rise because at 1.00 per that seemed it, no more! What a surprise.
Those are NOT buy suggestions. They are stocks of interest only and most are very high risk. Some are healthy companies, some are speculation only.
Those are NOT buy suggestions.
Purl Gurl
Posted by blue_in_MI on :
in looking at how ETLT got so much cash - i would imagine that certainly no small part of it was due to their earnings. going back and looking at previous 10K's, earnings are typically in the .20's per share, per year; for a P/E under 2.
re: DVPC, hmm - i'll look into again. had a buy order out for a few weeks, splitting the bid/ask and never got a single share. then i canceled all buys and put a decent chunk into ALMI between 1.05 and .85.
Posted by blue_in_MI on :
thanks for sharing your watchlists, am always interested to know what you're following. as always, we follow/own many of the same stocks.
* CTON, a disappointing last Q, after a previous very good one. hard to figure though, b/c their earnings/revs shift so much depending on how many houses they book in a certain period. if they build 1 one Q and 2 the next Q, could look like a huge difference in Q's, but - really it could just be normal construction flow making earnings look erratic. need to do a little research, i still own a little though.
* EYDY, finally bought a little this week at .21
* FRGN, also bought this week at .48. i think people are spooked by the odd reverse-split/cash out of teeny holders/immediate forward split deal. also, a poster on one board spoke of selling a large position because it hit "his price targer", hard to verify this though. seems worth the risk to me, am going to hold awhile. one would think their next Q would be good, considering it'd seem a lot of people buy perfume for wives/girlfriends during the x-mas season. pretty fast rev and profit growth Q over Q, i'm in.
* HQSM was in for awhile, but i found their last report disappointing, i sold.
* IDIB have swung a few times, still watching
* NXG - truly ludicrous, i don't know what to say. one of the more undervalued stocks i can find out there. P/E of 7 (lowest in the industry), very good reports lately, dunno what to say. am down on this one, but holding. looks like a steal to me at 1.07, but - i've had a lousy last month, so - what do i know. has just been beaten down with a stick, slowly and gradually, for quite a long time now. NXG, NTO, and EDV.TO are the 3 metals stocks i own, and they all had a lousy month, ouch!! EDV.TO closing in on a stock price of half of it's NAV, ouch. they just hit a record high last in NAV last month too, didn't stop them from getting crushed though.
* PDGE one of my top 5 positions, have bought repeatedly in the low-1.30's. one of my favorites. some i swing, some i am determined to be stubborn and hold long though.
* MILAA, KHK, TARG, APES, have watched these on and off as well. took APES off my watchlist after the 10K cheesed me off, but if they dropped to low-.40's i might go in for a little.
* CYDS, have posted about in that thread, can't even bring up again, too painful. was trying to buy 10K back when i first posted it, only ever got a meastly 2K, made a lousy $400 on it, *sigh*. what can you say about it? nothing to say, just have to shake your head and walk away.
the others, will look into also. thanks again for posting them, and also for sharing your thoughts on ETLT. often i find it a little tricky "going it alone" and relying solely on my own thoughts and research, this ETLT discussion above is a good example of why i come to allstocks. you and i generally see stocks in similar ways, but even with ETLT had some different and contrasting perspectives. is very helpful (at least to me) to "compare notes" with others whose opinions i respect (in your case, greatly).
Posted by Purl Gurl on :
Blue, your thoughts and opinions always receive my close attention.
Some of those stocks I am watching, came to my attention by your mentioning them.
CYDS! CYDS!
Great balls of fire. That was one nobody saw coming. People are asking about CYDS everywhere; none can figure out why the sudden upward surge.
Truthfully, I could not believe what I was seeing with CYDS. I even started looking for evidence of a reverse split I missed! There was no hint and that "denim" news does not support current prices. I don't know what the F word happened with CYDS.
Maybe someone lied and said, "They bought Levi-Strauss?"
Glad to read you are still buying ALMI. I have great faith ALMI will pay very well in the future. So much potential and almost no competition.
I am still tinkering with the idea of uranium. CBAG is a bust. However, lots of worldwide talk about building new reactors. It is impossible to gauge which uranium stock will be a CYDS. There are only a handful of active uranium mines.
Alternative fuels are looking better all the time. I like IESV for that reason. IESV has been making motions about moving into the California market. We have happy cows! Here in California, dairies are a very major business, more so than in Idaho where IESV is based. If IESV can land a small contract in California, instant share skyrocket.
Love that "got milk" PMS commercial!
I am also tinkering in the hydrogen market, but it is speculation for now with hydrogen fuel so far off in the future. A hydrogen play might be good for a college fund or retirement, something years off before pulling profits.
* imagines hydrogen cars blowing up periodically *
KABOOOOM!
"Ford recalled one-million Crown Victorias as a result of so many blowing their trunk lids off."
Micro-scale hydrogen power for the military looks to be a developing hot market. This is the new "hydrogen on demand" technology.
Ok, get busy and find another CYDS or another ALMI! Oh yes, be sure to tell us when you do!
Purl Gurl
Posted by keithsan on :
ETLT moved nicely a few months back, I palyed as well as blue I think. CYDS was fun but I couldn't have played any more poorly. ALMI watching to see if it pokes .70 on this drift. NOthing new on the horizon just yet for me. Swinging VSNT not sure how long.
Posted by blue_in_MI on :
i rarely ever average down, but - added a little more ETLT at .28, can't believe it's that low.
Posted by blue_in_MI on :
several small-volume buys on the ask at .34, some people likely speculating that the 10K might be out today. i have no idea when it'll be out.
interesting similarity in the trading patterns for both ATVE and ETLT the last few months. both are absurdly late with their 10K, causing great distrust and dumping by extremely cheesed shareholders, both lost half their value or more over the last 6 weeks.
but - the numbers from both 10K's, once they're finally freakin' out, should be good.
should be interesting, not sure what to expect.
Posted by blue_in_MI on :
crept up to .35, ask moved to .36. was reviewing their 10Q's and K's at edgar online over reheated leftovers at lunch. last 10K states .23c/share profit, and last 10Q states a .13/sh profit so far for 2004, with the upcoming Q historically being their best.
from the 10Q before the previous 10K, they had a .03/sh loss on the 2003 year, in the 9/30/03 filing:
"Historically, our business has been highly seasonal with nearly all of our revenues being generated in the fourth quarter. While our business will remain seasonal because embryo sales occur during the fourth quarter, other periods should benefit in the future from the sale of milk and lamb meat, thereby making our overall business less seasonal."
shows a profit so far of .13c/sh for the first 9 months of 2004, compared to a .03/sh loss for the first 9 months of 2003.
the most eye-popping numbers though come from looking at the balance sheet - assets ~$39M, liabilities ~$2M. with about 29M shares O/S (which to be fair there's no way to guarantee that they haven't diluted since then, though the e-sea dilution is canceled) - that's a hefty buck-thirty or so per share in terms of assets minus liabilities on the balance sheet.
so as much as they've cheesed me off by being 5 weeks late filing and canceling e-sea, that's why i'm still holding and even bought more at .28. i wanna see the 10K, and odds strike me that it will be quite good - we'll see. unless my calculations are off (Purl?), they earned .27 a share last year in the Q they're about to report on (.24 - (-.03)). if they can repeat that performance, then that would be .27+.13 or .40/sh profit on the year, for a nifty P/E of .875. we'll see, next week should be interesting.
Posted by keithsan on :
missed this from work:
Eternal Technologies Group Reports Profitable Year and Record Annual Revenue for the Calendar Year Friday May 13, 8:30 am ET Cash Position Increased From $16,302,464 to $27,473,354 for the Current Year End
HOUSTON, TX--(MARKET WIRE)--May 13, 2005 -- Eternal Technologies Group, Inc. (OTC BB:ETLTE.OB - News) today reported revenue for the year ended December 31, 2004 of $16,834,759 as compared to $15,495,966 for the same period in the previous year. Net income applicable to common stockholders for the year ended December 31, 2004 was $4,232,862, or $0.14 per share, compared to net income applicable to common stockholders for the previous year of $6,410,853, or $0.24 per share. ADVERTISEMENT
The balance sheet at December 31, 2004 included cash of $27 million, total assets of $40,482,265 and total liabilities of $2,242,426.
Revenues increased by $1,338,793 or 9% to $16,834,759 for the year ended December 31, 2004 from $15,495,966 for the year ended December 31, 2003. The increase was primarily due to an increase in the sales of rolled mutton of $3,436,012, dairy cattle embryo transfers of $2,951,807, and the sale of live sheep of $92,723. These increases were partially offset by a decrease of $668,795 in the sale of lamb meat, $4,450,602 in sheep embryo transfers and $22,352 in the sale of sheep embryos.
The decrease in net income was primarily attributable to an increase in cost of sales increased by $3,754,932 or 57% to $10,305,514 for the year ended December 31, 2004 from $6,550,582 for the year ended December 31, 2003. The decrease in gross profit is attributable to a reduction in sheep embryo transfers which has a higher profit margin and an increase in the sale of sheep meat and cattle embryo transfers which has a lower gross profit margin. Gross profit as a percent of sales decreased by 19.0% to 38.7% for the year ended December 31, 2004 from 57.7% for the year ended December 31, 2003
it is my own fault, i got the ETLT stuff mixed between this thread and the "Purl, a little help please?" thread.
pondering ETLT's 10K, one thing that obviously sticks out the most is: the cash.
in my mind, used to be e-sea was the most important aspect. now, this is of course no longer true. now - it's the cash.
that is whopping - .93/sh in cash. in tracking the history of the cash level - went from $16M a year ago, to $19M at the end of september 04, to - a whopping $27M (!!!) at the end of december 04.
the obvious question is, which Purl has asked awhile ago but i think grew greatly magnified importance with the giant bump-up in the last 3 months: how did they amass an extra $8M in cash the last 3 months alone of 2004? that is a lot of money, considering that their revenues were less than $2M in that period, and their profits about half a million.
a related question re: the cash is - how will it be used down the road? i understand the whole "can only be used in china" thing - have been over that repeatedly with the IR guy. but - *HOW* will they use it in china?
there's 3 obvious things they *SHOULD* do with it, if you ask me:
* reasonable growth and expansion - buy things, in china, that will grow their business
* buy back shares (!). this would seem to be a no-brainer, would also develop investor trust and raise share price
* use it to make a freakin' website! this is killing ETLT in my mind, their lack of a website. they used to have one (eternalprc.com or something), but - let it slide. this is unforgiveable, they *need* a website.
obviously the problem with ETLT is they need to develop investor credibility. this is particularly important for chinese companies (see: CXTI as well). people seem to just not trust chinese companies at this point.
i have been over this with kenneth maciora on the phone at ETLT: their very next step should be to: make a website. show the buildings. show the land holdings. show the corporate chart. show *pictures* of all this stuff. show a big farm with a big "eternal" sign next to it. show pictures of their corporate hq, of scientists working, all that. i think the lack of a decent website is costing ETLT on the order of a nickel a share at least in value. i tried to stress this point with maciora, i hope the point got across.
it is really very easy to make a website, i put one together in a weekend. no excuse for them not to have one.
Posted by keithsan on :
for me its the day jobs fault, still havent found a way to get rid of it yet.
I also thought we had a thread that a few of this played this as a swing trade at some point. Maybe i'm mixing ETLT up with something else, I havent read the report yet, thanks for the insights.
Posted by blue_in_MI on :
amazing, ETLT is now officially "the next CXTI".
they release a very positive PR -
"Eternal Technologies Group Inc. (OTC BB:ETLT.OB - News) is pleased to announce that the company has signed contracts that represent $15, 974,688 in revenue year to date. The income generated from these contracts is expected to significantly exceed all of the income generated in 2004. Management expects to sign additional contracts throughout the third and fourth quarters."
so - what do the stock do? of course, it promptly drops to .255.
dunno what to say about this one - is absurd. trading at about 30% of their *cash* value, maybe 20% of their book value, and at a P/E under 2.
just plain - broken, is amazing. *shakes head*
Posted by blue_in_MI on :
CXTI and ETLT seemed to both "unbreak" at the same time, as also commented on in the CXTI thread.
very very strange - ETLT dumped all the way to .135, then doubled last week to close at .44 friday. am still trying to sort through some of the reasons. obviously ETLT's latest Q was a big part of the rise: earned .06 on the Q and improved their already excellent balance sheet (with the usual caveat that most funds are earmarked for use in china only). anyone invested in ETLT might want to also peruse psi_club's posts on RB - he bypassed the usual IR connection and sent an actual written letter to the company in china, with some interesting responses he got back.
not sure what to make of this one - still holding some, a very odd stock.
Posted by blue_in_MI on :
wacky day - massive and sudden dip to .31 early on, followed by a slow rise to eventually close even on the day.
strikes me that for better or worse, ETLT has suddenly and oddly become somewhat of a traders' plaything at the moment. huge volume lately, at least 7-8x average for the last several days. if the volume stays big and it remains a traders' plaything, really hard to say what could happen - probably a lot of big swings, could just as easily run to .80 as fall back to .25. if the volume dries up, could slowly pull back, perhaps until their next good Q where it might get driven up wildly again. of course these are just random guesses and i could be completely wrong, just an opinion.
it is funny, the whole "traders' plaything" phase. generally i'm a boring, nuts and bolts, fundamentals guy who pays no attention to charts or TA. when stocks enter the plaything arena though, it strikes me that they temporarily "decouple from reality" and any kind of rational analysis goes out the window. then it really gets interesting and all bets are off.
hard to decide what to do with ETLT at this point. on the one hand, ETLT has had a big run last week and could be due for a cooling off. on the other, it's hard to see how they're overvalued at this point, trading at a trailing P/E of 3 and what should be an even lower forward P/E. anyone have any guesses/thoughts?
dunno, should be interesting. i shed some at the open today, but am still going to hold the rest for awhile and see how it plays out.
kind of ironic - after such a wacky rollercoaster ride today with 50% swings: ETLT ended up: exactly even on the day, 0.0% change.
Posted by blue_in_MI on :
huge buys the last 20 minute today pushed this baby all the way up to .50:
2.7M shares traded today, about 15x average. i'm not sure if it can sustain, but - i'm going to keep holding my remaining shares, based in part on my trader's plaything theory above. as long as the volume is there, i still think has a chance to make a CXTI-type run. i could of course be completely wrong, but - looks like a bulish close to me. regardless, i still like ETLT's chances long term, they've already stated that their revs and profits should exceed what was a very good last year, am hoping for .20/sh profit on the year compared to .14 last year. we'll see.
anyone else have any thoughts on this one, keithsan maybe?
Posted by blue_in_MI on :
.57 open, a quarter million traded in first 3 minutes
Posted by blue_in_MI on :
1M shares traded the first 18 minutes. no idea where this one will end up today - could be .40, could be .60. pretty amusing to watch on the ticker though
Posted by blue_in_MI on :
interesting midday dip to .49, am keeping my finger on the buy button in the event of a panic slide, we'll see.
Posted by osubucks30 on :
With the volume inreasing and book value over $1 can it keep rising?
Posted by blue_in_MI on :
good question bucks, wish i knew the answer. the hot chinese sector of the microcap market pulled back today - CXTI, ETLT, HQSM, you name it all down. weird day for ETLT - charged out of the gate, realized that all chinese stocks were correcting, and dipped along with them. not sure what to expect over the next 1-2 weeks, volume still huge though. i only have a small position now so probably will just let it ride and see what happens. not even sure if the book value or anything else really matters at this point, it's just in traders hands and it depends on whether they want to keep playing with it and give it another run, or if they're bored and want to move on to the next fad.
Posted by blue_in_MI on :
i have no way to verify this, but - fwiw - a very interesting RB post about the ETLT annual meeting last friday down in houston.
i am hoping that it's true about firing their PR firm, i was fed up with them on the phone. also particularly hoping it's true about the website, we'll see.
of particular interest to me was the fact that from this, it sounds like e-sea may not be dead aferall. i'll give them a call next week, that is of major interest to me. e-sea was one of the main things that drew me to ETLT In the first place.
anyway, here was the post, fwiw -
Annual Meeting Details
This AM, I received permission from my fellow ETLT shareholder to pass on his comments regarding the Annual Meeting (edited slightly at his request).
Gene,
Just back from the meeting. Mr. Wu was there, great guy, enjoyed meeting him. Good news: they have fired their PR firm and Mr. Wu’s daughter-in-law has relocated to Houston to take charge. Hank Vanderkam, their US Council was there and had plenty of good info to share. Two reps from the new accounting firm were there as well. Vanderkam has a large stake in this and I like the fact that he is in Houston, as is the ETLT US office and the accounting firm. I have NO DOUBTS about this company. All was covered in great depth. Mr. Wu is certainly not a PR guy but a solid CEO with a good vision of where he is going with this company. Shang Jiaji’s holdings are now down below 5%. He has no formal affiliation with the company other than owning the building where they are Headquartered. ETLT has no parent company. There is absolutely no affiliation with China Contential. Mr. Wu seems not to get too excited about low stock prices in the short term. He is future focused. All of your issues were addressed. There will be a US website in a few weeks. The fact that they don’t have one is one of the reasons that the current PR firm is history. The prime reason the former accounting firm was canned is that they seemed to have delayed the accounting process so long they blew the E-Sea Acquisition, temporarily. Speaking of that, xxxx xxxxx xxxxx xxxxx (withheld by request)xxxxxx xxxxxx xxxxxx xxxxx. Keep that to yourself and let the company release that info in their own time. Interesting investors and rep firms were in attendance. All left with feelings that ranged from relief to euphoria. I am on my way out to dinner. Will share more next week. Let me know of any specific questions that you have. I was glad to get home in time to purchase another slug of ETLT in the very low $0.40s.
Regards,
xxxxxx xxxxxxxxxx
Posted by blue_in_MI on :
some pretty heavy buying this am, back up to .51 on almost 1M shares traded so far. no idea if can hold it though, we shall see
Posted by blue_in_MI on :
risky maybe, but - just added at .42. i think ETLT has a few more future runs in it, we'll see
Posted by blue_in_MI on :
fwiw, just out -
"Heron Public Relations Group Inc. will take public relation work for ETLT instead of expired ERG from today.
"One of the reasons I choose Heron Public is that they are bilingual. They can release language barriers from exchange between directorate, management and shareholders. I hope that Heron Public can be more betimes, more fair and more popular by shareholders in introducing management's conception, management's stratagem, management's policy and management's harvest and create solidity image in your heart.
"I hope that Heron Public can more understand ETLT, remedy lack job of the past. I ask Heron public to establish English website as soon as possible use our formerly domain name so that it can be satisfied by shareholders.
"I promise that I would answer one shareholder's representative question at least through Heron Public every week. Of course, I would like to communicate more with shareholders without prejudice to equity disclose principle if I have time.
"ETLT is a public company, firstly it is yours because you paid money. I would like to serve shareholders. I also hope that you sustain us and sustain new partner -- Heron Public."
Jijun Wu
Chairman of Board
SOURCE: ETLT
--
interesting. the bad: English is horrible. the good: they *are* indeed canning my "buddy" Kenneth Maciora, and *do* intend to have a US website. kind of an absurd and strange PR, but - in the end, i like it. won't make it run or anything, but - a mild good sign for the future imho. we'll see.
Posted by blue_in_MI on :
too early to tell for sure yet of course, but - i like that resistance in the low-.40's seemed to hold up on ETLT, a bit of a bounce today. i suspect the bounce today may be in part due to the financials from the last Q happened to finally be posted on yahoo finance this am. but still, am going to keep holding and see how it goes for ETLT. i hope they get their website up soon, will be curious to see it.
Posted by blue_in_MI on :
some nice buying today, at .49 currently. not sure what's up - probably nothing, but - interesting.
in any event, i like the strong base in the low .40's ETLT has been showing lately, still holding.
Posted by blue_in_MI on :
took half off the table at .49, mainly because i don't see anything driving today's runup, and i think likely to fall back. will look for reentry around .43, hopefully; we'll see.
Posted by blue_in_MI on :
figures - .50 close, i always take a chunk off the table too early. will be very interesting to see what a few PR's might do to this one. am going to keep holding my remaining half, and hopefully be able to reclaim the other half on any dips.
Posted by blue_in_MI on :
btw hey purl i'm blabbering on to myself WAY too much here, in way too many threads. when's your board vacation gonna be over?! heh
Posted by blue_in_MI on :
weird day: a lot ran off at the .52 ask at the open, then suddenly the rug got pulled out and almost instantly dropped to .45x.50, now slowly working it's way back to .52x.53. oops, make that .53x.535
Posted by blue_in_MI on :
another weird day: GTEL popped a huge ask block size up at the open that scared people and had a pullback to mid-upper .40's on almost no volume. put a buy order in at .44 for the half i sold at .49, maybe will get a fill.
their next Q is historically a good one, but won't come out until 11/15, so i want to try to be patient in buying. but - i am expecting some PR's over the next few weeks as they transition in to the new PR firm that might help ETLT, hopefully starting with one announcing the US website.
Posted by blue_in_MI on :
NEW YORK--(BUSINESS WIRE)--Sept. 19, 2005--On September 16, 2005, the new Board of Directors of ETLT (OTCBB:ETLT - News) held its initial meeting. All the Directors were present except Mr. Shien Zhu who sent a representative to the meeting. The new Board elected Mr. Jijun Wu as Chairman and Mr. Wei Hu as Secretary. Because of the growth of the Company, the Directors unanimously agreed to hire Ms. Zheng Shen as CFO. Ms. Shen is a graduate of Tianjin Finance and Economics University where she received a doctorate degree in 2002. Previously she had received her certification from the ACCA of the UK and her certificate as an International Certified Internal Auditor. She is an associated professor of accounting and a Chinese CPA. In joining the Company, Ms. Shen will play a significant role in the anticipated Chinese acquisition and the operations to be established in the US.
The Chairman also advised the board on the progress of two on going projects. The first is the establishment of a US operation to produce fine breed dairy cattle embryos and the second a breeding base in China for US fine breed dairy cattle. The Directors authorized management to invest up to US$37 million in these projects.
Posted by blue_in_MI on :
just rebought at .43
Posted by blue_in_MI on :
i think the dump yesterday was due to a fairly mild S-8 out yesterday am that scared some people. i hate to see a S-8, but - this one looks like short-term would only amount to about 3% dilution, so the 15%-dip reaction seemed a little too harsh to me.
still waiting on website and other news. i check www.eternalprc.com every day but so far not active yet. a past PR mentioned that they would try to use the same URL as their old address, which was the eternalprc one.
next Q not due until november 15th or so. historically, this upcoming Q has been a good one for them.
pretty wide spread at the moment: .44 x .47
Posted by blue_in_MI on :
took .50 this am on my swing-trading half of shares, still holding the other half.
i like hedging bets with half-positions, keeping a chunk long but also trying to reduce risk and (hopefully) supplement profit with a swing-trading chunk
Posted by podcaster on :
ETLT == JUST A HEADS-UP TO ALL... this one may or may not be a good play.... i'll probably be dropping by during October to see how it's doing... and i'll be commenting on how mm's are reacting to boycott... i'm rooting for you if you're successfully playing it, since that hurts the mm's ... i'm also rooting for you if you're in on the october A-G boycott october boycott thread on this board good luck to you! Posted by blue_in_MI on :
please get your spam out of my thread.
there has been enough crap with all the SVSE nonsense here lately, i don't want a bunch of spamcaster nonsense polluting my threads on top of that
Posted by podcaster on :
no spam, ol Blue--- this is live and in color--- a warning to the wise and an opportunity to the shrewd... the newbies understand it--- boycott thread on this board Posted by blue_in_MI on :
back in with swing-position at .45
Posted by blue_in_MI on :
out of swing position at .53. tempted to hold because some large-volume buying at the ask, but - still holding my long position.
Posted by blue_in_MI on :
needs a lot of work still, but - at least the basics of a website went up today:
hopefully they'll improve on this; i've posted several times previously about the need for a good website, and discussed it with their old PR guy on several occasions.
anyway - a start, at least.
at the moment am just going to stick with the plan to hold half long and continue to swing the other half for nickel-ish gains. yeah, boring maybe, but - string enough 10% gains together, and - it adds up.
my hope is that the next Q due in november will be quite good and hopefully break strong resistance in the low-.50's, we'll see. at the moment a fairly small holding of ETLT, but - would consider raising if i like the news and updates they put out. e-sea is a wildcard: probably dead, but - maybe still a chance they could swing it somewhere down the road.
Posted by blue_in_MI on :
just sent this email to my dad and brother:
---
was up working at a customer site in auburn hills today, just stopping back by home for lunch before I head back to the office
very interesting 8-k filling for ETLT this morning:
they *did* in fact buy e-sea afterall. If you recall, they fired their old PR firm and accounting firm: PR firm because amongst other things they never set up a US website as they promised, and the accounting firm because they fouled up the original e-sea deal.
Basically it looks like they paid $4.5M for e-sea. Based on this, e-sea earned $1.8M the last 6 months alone, and it appears they bought it around book value.
If you recall way back to the spring, one of the primary reasons I was so interested in ETLT was because I felt the e-sea deal was very promising. So, I am quite encouraged by this development, enough that I added more at .49 this morning.
Another note is that they did just get at least the framework of a US website up this week. Frankly, it is not very good, but - hopefully they will update and modify it, right now is just pretty much a basic framework:
anyway, fwiw - I'm encouraged by some positive signs lately out of the company: they seemed to at least be making an effort to "clean house" and work towards some of their stated goals: getting a new chairman, setting up a US website, and working out the e-sea deal afterall.
Posted by blue_in_MI on :
an interesting note about the e-sea acquisition: price is substantially less than the originally negotiated deal: only about $4.5M instead of $7M.
near the beginning of this thread is some e-sea discussion, btw
Posted by blue_in_MI on :
ETLT has been trading in a pretty narrow range lately but bid dropped to .46 today, am sitting there to try to add.
of note i think is another website change, this time moved the URL and added quite a bit of info. not super-polished, but - i like it. i was one of the main people always b!tching at them to get an english website up, so - i'm not going to complain.
of particular note is the company news section, any holders would want to read the 10/9/2005 releases :
maybe i'm an idiot, but - have stopped swinging this one, am just going to hold awhile and see what happens. i admit it's risky (heck, it was at .14 not that long ago), but - am willing to take on the risk. as i said before, i like that they appear to be working towards their stated goals: website up, acquired e-sea, and look to be trying to grow the business and invest all their cash, with a minimum of dilution. i view all of these as positive steps.
Posted by blue_in_MI on :
odd week for ETLT - ran to .56 on very large volume, then fell back to .50. am resisting the temptation to keep swing-trading this one, still holding my increased position. will be interesting to see financials, due in a couple weeks. website went down a few days for maintenance, back up the last week or so though.
Posted by blue_in_MI on :
news posted yesterday on the ETLT website, but no official PR (at least that I could see): about completion of the first step of the 2000-cattle expansion program. link is 2 posts up.
ETLT showing a bit more strength than a few times in the past: holding above .50 consistently; friday close at .53. waiting on financials, due in a few weeks. i think they will be good, but - we'll see. i'm more interested in the long-term development of ETLT: steps such as reviving the e-sea acquisition, finally getting the website going, growing the business etc have turned this into a long-term hold for me.
Posted by blue_in_MI on :
wonder if i've set a new allstocks record with this thread btw: if you discount "podcaster" spamming, that's 25 posts in a row by me in 10 weeks without a single response, heh. clearly, the ETLT interest on this board consists of: me, and, uh...me.
is kind of funny, i admit, and brings up the question: why do i keep rambling on to myself?
two reasons, really:
* family and a few friends know to look here if they ever want to read my opinions on some stocks
* my guess is that PG is still out there reading through this board occasionally, even if she is taking a break of posting. i hope you eventually find your way back here, queen bee; am starting to forget what an actual 2-way stock conversation is like! heh
Posted by osubucks30 on :
I am about the only one who posts on it.
Posted by blue_in_MI on :
ETLT new 52-week high this morning on big volume, touched .65, currently .62x.63.
boo-yeah!
Posted by blue_in_MI on :
.66x.67 on 2.2M shares traded
Posted by bdgee on :
Well, Ive established that I can be a drag on any stock.......got in at .66 and it stagnated.....hahaha.....
Posted by blue_in_MI on :
you're off the hook bdgee, closed at .75 today on large volume again.
i'd be more excited, but am still perturbed about JMIH, loss there soaked up half of my ETLT profits the past week.
somewhere in riverside, someone is reading this and saying "let it go, move on to the next one". i admit that this is one of my weak spots as a trader: i dwell too much on losses and/or missed gains and let them perturb me. as long as i'm up overall, which i am, that's all that matters, rationally i know that. but - still, was perturbed about JMIH all day, i admit.
Posted by bdgee on :
Yep, it's up and running today. And it looks like it isn't through. A tad too rich on the RSI, but good volume with an even gooder MACD.
I like that word, "gooder".......snicker....
Posted by BuyTex on :
snick
snicker
snickiest
& then of course....
snickercalifragilistic...
Posted by 4Art on :
Still condone that, BuyTex?
Posted by blue_in_MI on :
is funny bdgee, i admit that i am much more of a fundamentals than technicals guy: never bothered to stop and consider the MACD, RSI, any of that with ETLT. while i can certainly see that the "chart looks good" in a general way lately, am still holding purely for the fundamentals reasons discussed above.
i'm certainly guessing that much of the run this week has been in anticipation of earnings, which are due next week, and this has historically been one of ETLT's best Q's. we'll see. will have to wait for future Q's though to see the effect of e-sea. e-sea is the really interesting wildcard when it comes to ETLT: the potential for it is certainly huge, but - just hard to say, will have to wait and see if it pans out and lives up to expectations. just no way to tell at this point.
Posted by keithsan on :
its bouncing off the 50dma. will be good till it stops bouncing and breaks thru, 50 pointing upward for a nice trend. Hopefully it'll hold.
Posted by <Concerned shareholder> on :
As of August 5, 2005, 30,679,630 shares of Common Stock of the issuer were outstanding.
As of November 14, 2005, 39,683,407 shares of Common Stock of the issuer were outstanding.
Where did that 9m come from?
Posted by blue_in_MI on :
so swamped at work this week, haven't even had time to read the 10Q. clearly people were disappointed with .03/sh profits though, all the way back to .50-range again, *sigh*.
as for the shares, most of them were due to the E-Sea acquisition last month. while i'm disappointed with the dip, am going to hold: still like the potential of e-sea.
Posted by <Concerned Shareholder> on :
If all that 15m in contract revenue is deferred to 4Q, and if the acquisition of E-Sea is already complete, this means that 4Q is going to be super fat for this company
Posted by blue_in_MI on :
the first PR that really discussed E-Sea as the new subsidiary of ETLT yesterday:
so they will be operating their own clinics for the mammograms, in addition to selling them. relatively small revenue for now, but will clearly be ramping up fairly quickly to be about 10-15% of their revenue for the FY 2006, and hopefully more after that.
it's unclear exactly how much revs/profit will be booked due to E-sea to the 2005 bottom line, the 10K for which is due out march 30. i imagine will be a relatively small amount, but clearly will ramp up to be a bigger % of their business in 2006.
it's of note that, a little unusual for an OTC stock, ETLT did actually provide guidance for the 2005 10K numbers. per their 12/5 PR, they are guiding for revs "in excess of $21M", compared to a little under $17K for FY2004. they also note that their latest dairy project numbers won't be included in the last Q of 2005 - not until this year.
doing some simple math, is clear that 4Q2005 should end up being about an average Q for them - should be about $4M in revs since they're at $17M in revs already for the year. i guess you can look at this in a number of ways. last year they only had $1.6M in revs in 4Q, but it's my understanding that much of their business is still seasonal, with the biggest Q's being the 2nd and 3rd Q's of the year. they seem to be working to "smooth out" the seasonality of their business to be a little more consistent, clearly e-sea will help with that.
to this point for FY2005 they've made about $3M in profit on that $17M revs. 4Q2004 they booked about $0.5M profit on that $1.6M revs, is unclear how much they will book in 4Q2005. my guess would be maybe $1M or so. the only sentence in the 12/5 PR about income is: "The company expects earnings for the year-ending December 31, 2005 to exceed those for the year-ended December 31, 2004."
so actually <Concerned Shareholder>, while it will clearly be profitable - personally I'd doubt that 4Q is going to be "super fat for this company". ETLT is slowly but surely building their business, my guess is that it will take until 2Q2006 for the numbers to get fat. they have invested in some major new business-generating streams during the FY2005, but these leads will take a little time to fully get going.
of note also is their statement from the 12/5 PR: "The company also anticipates a significant increase in net assets from those reported as of December 31, 2004." clearly e-sea will help here: it will have to be proven out with 2006 numbers, but - it's still my opinion that ETLT bought E-Sea for a song, and that in the end it'll prove to be quite a profitable investment for them.
so anyway - my general opinion is that ETLT is a good long-term hold, and that is exactly what i'm planning on doing. i want to see how 2006 plays out, the results of their 2005 investments. it's very disappointing to me that it quickly fell all the way back from it's very brief peak, but - i still think that ETLT has a good chance to eventually get to $1+. am going to keep holding it in my long-term accounts like roth ira and kids' college funds. barring any major changes in the company or something that makes me really change my opinion of them, i don't anticipate selling for at least a few years. i don't believe it's likely to have a huge jump when 4Q numbers come out 3/30; i view it at as a long-term play and think the numbers will rise more gradually. we'll see how it plays out.
Posted by blue_in_MI on :
one other brief comment on the guided 4Q2005 profit: actually it should be least $1.2M if their guidance is correct. their 12/5 PR states:
"The company expects earnings for the year-ending December 31, 2005 to exceed those for the year-ended December 31, 2004."
so far they're at right around $3M profit through 9 months of 2005, and they made $4.2M profit in 2004. so they'd need to come up with at least $1.2M in profit in 4Q to exceed their 2004 earnings. so maybe my $1M profit guess for 4Q was a little low, maybe $1.5-2M is a little closer, if their guidance is correct.
Posted by blue_in_MI on :
odd trading patterns for ETLT; up nicely today on large volume, whereas it barely budged yesterday on their latest PR. go figure.
Posted by blue_in_MI on :
nice little run going: was .38 2 days ago, just hit .53.
yearly range of .14 to .79, gotta love the OTC, heh
Posted by blue_in_MI on :
still strong volume here with ETLT, .55. will be interesting to see whether it fizzles or can sustain. either way, i'm holding long though.
is interesting that chinese stocks always seem to "run in packs". i'm convinced that part of why ETLT moved up sharply was because of a sympathy effect with stocks like CXTI, AOB, SUWN moving up sharply. has happened a few times that their movements are at least semi-correlated and that they tend to run together.
Posted by UnknownTrader on :
ETLT will continue to move for at least the next 2 days, may take a small dip by the 3rd day.
Posted by blue_in_MI on :
volume dried up, basically stabilized in the mid .50's for now.
will be interesting to see if they stay there for a bit, or slowly sink back into the .40's. hard to say, but if i had to guess barring major news or anything: bet they will sink back to about .50, and then perhaps rise again a bit before the next earnings report. we'll see. i'm a lot more interested in the long-term than short term price movements, frankly.
Posted by blue_in_MI on :
slid back a bit when the volume picked up, but support held and had an afternoon mini-run today for a .62 close.
i continue to like this one, have been adding to my holdings on any dips, ETLT is actually my largest OTC holding at this point.
i found their latest update on their news page very interesting. mangos. they apparently have some kind of deal to cooperate with a mango orchard owner, who is selling his entire orchard's output to wal-mart. will it be a significant revenue stream, rivaling e-sea? nah. but i still find it interesting and kind of amusing.
Posted by blue_in_MI on :
it also never hurts, if you're a little OTC company that many people doubt even really exists, to get your name associated with a giant like wal-mart. even if it's just for a little mango project.
Posted by blue_in_MI on :
nice day for ETLT, pushing .70 again on good volume.
Posted by blue_in_MI on :
dipping on relatively low volume - adding a little more at .61. am hoping that .60-range will be the new support area, we'll see
Posted by blue_in_MI on :
bummer, obviously i guessed wrong on the short-term movements of this one. took a dip today based on the late (again) 10K:
"The extension was requested because the Company is assessing the impact, if any, that FASB 133 (Accounting for Derivatives) might have on their financial statements for the year-ended December 31, 2004. While the Company believes that the impact will be minimal, its independent auditors have insisted that this matter be resolved before they issue their opinion for the year-ended December 31, 2005. The Company fully intends to file its Form 10-KSB on or before the extended due date of April 15, 2006."
have a fair amount of ETLT already, but will be hard to not add more if it dips any more. the delay is annoying, but - i think they'll get it in by april 15. and i still think the 10K will be quite good and show at least .10/sh profit on the year, with good growth prospects looking forward. we'll see.
Posted by blue_in_MI on :
it's a major disappointment to me that ETLT was not able to get their 10K in on time. i really hate late filings, bugs the crap out of me. The "fully intends to file" by April 15 clearly did not come to fruition for ETLT: much to my chagrin, no 10K filed at edgar online yet.
i am really hoping they file monday morning, will try to get in contact with them Monday if there is nothing out by market open.
luckily, has held up fairly well despite the late filing: still around .52. no doubt will see the .40's again if the 10K is still not out by the middle of next week, however.
Posted by blue_in_MI on :
STILL no 10K. as this is my largest OTC holding - even bigger than ALMI - very disappointing.
Posted by blue_in_MI on :
major deja vu, just like one year ago - STILL waiting on the 10K. did i mention how much i hate late filings?
frankly, am a little relieved and surprised that ETLT/E is still at .50, thought the market might have punished them more for their tardiness.
being stubborn, of course i am still holding.
Posted by blue_in_MI on :
dear ETLT,
where the #$%* is the #&%$ing 10K? you are a MONTH late now.
from,
pissed_off_in_MI
Posted by blue_in_MI on :
my last post pretty much said it all, but - here is my actual latest correspondence with ETLT, in case anyone here follows the company.
seeing as my top 3 OTC holdings are: 3) KSWW 2) ALMI 1) ETLT, suffice it to say the delay is hardly sitting well with me. However, I am still holding, being highly stubborn.
----
I regret that ETLT delay to file the 10KSB. The management can not help but...Actually, the audit of 2005 and E-sea acquisition have been done on March 20th, the only thing is to amend some numbers of 2004 according to FASB 133. And this amend won't impact the cash, only adjust numbers--seems like number game. Anyway,the annual report 10KSB is almost ready and is expected to be filed in several days. Thanks again.
William Cai Manager Heron Public Relations Group, Inc.
> Mr. Cai, > > I am a shareholder in ETLT - make that ETLTE - as are my children > and father. The 10K annual report is now about a month late, and two > weeks after the April 15th date it was said ETLT "fully intends" to > file by. > > This is very disappointing, investors lose all confidence in a > company when they can't get a filing in within a month of when they > are supposed to, and continue to miss stated deadlines. It reflects > very poorly on the company and management. Much more delay, and we > will be on the pink sheets here after ETLTE gets delisted. > > Do you have any kind of firm date that Eternal is planning to file > the 10K by? I really don't want to have to sell all my ETLTE stock, > because I find the company very promising. However, it's not > acceptable to me as a shareholder to invest in a company that is > unable to reliably file their reports even a month late. > > Please let me know what is the latest current plan and timetable with > the 10K. >
Posted by vg on :
Dear Pissed_off_in_MI, I dont like the "Anyway,the annual report 10KSB is almost ready and is expected to be filed in "several days". Thanks again." I am not holding it but several days? how many more do they want?
Posted by blue_in_MI on :
as OTC investors go, i am a pretty patient person. this can be seen by a number of threads around here where i've held OTC stocks for years, whereas the average hold of a stock discussed here is probably more on the order of weeks (and in some cases, minutes).
however, i admit that i *hate* repeated late filings, particularly when they're not days late but weeks late. CLSI and ETLT have historically been two of my favorite companies over the last 2+ years. yet they have frustrated me to no end, with their in complete inability to get an SEC filing out anywhere near on the time.
neither company seems to fully grasp the concept that a history of constant late filing is not just a minor and easily correctable glitch. it has long-term effects on investor trust, and presents the impressed to the public that the management in sloppy, indifferent to shareholders, and/or disorganized.
it was no coincidence that the decline in ETLT's share price from .70 range started weeks *before* the 10K was due. clearly this was people having a memory of how late last year's 10K was filed, and selling to avoid holding during what they figured would be yet another late filing this year. and - obviously, those fears were justified.
if ETLT ever wants to get their shares out of swing-traders hands and into the hands of long term investors who dont' sell off before every filing is due, they will make it a top priority to get the damned filings out ON TIME.
i still expect the numbers to be good for ETLT once they're finally out, and that it will rebound. but - still doesn't excuse the lateness, and they are simply going to have to work on this in the future and start early.
the 1Q numbers are actually due may 16, last year they were 4 days late. with ETLT this year - may well be that we get both the 10K and the 10Q within a week or two of each other, bunched very closely. we'll see.
Posted by blue_in_MI on :
STILL waiting. latest i got from them was this yesterday:
"The calculation 133# has a little mistake due to the original document the lawyer gave to them missed a sheet. The recalculation has been doing. The report is expected to be filed in this week."
surprisingly though: ETLT still hanging right around .50. just no excuse for how ridiculously late this 10K is though. apparently ETLT shares filing specialists with GFCI.
Posted by blue_in_MI on :
ETLT, i am simply defeated by ETLT; can't believe they didn't file this week. i send them long (and increasingly testy) emails all the time, even though i know full well it's a waste of my time.
a couple times a week cai emails me back with the excuse-du-jour and yet another date, which of course fails to occur. especially with the language barrier, am pretty sure cai understands shareholders are pissed off and disgusted, but doubt he fully understands or forwards to management my or any other shareholder emails.
am still holding ETLT, because i still believe both the 10K and upcoming 10Q will be good once they're FINALLY out, and that they are a promising company. but i freely admit that i am thoroughly defeated by ETLT's incompetence in anything filing-related. these guys couldn't file their own fingernails on time, let alone a 10K within 6 weeks of the damned due date.
every company has pros and cons, and there's no doubt what ETLT's biggest major con is.
ETLT and CLSI taught me that for me personally it's better if i avoid companies that are incompetent at filing Q's and K's. while i'm patient with many aspects of a company and tend to hold stocks WAY longer than the average hold time of say this board, i admit i just have no patience for late filing shenanigans. i'm sure CLSI will go straight to a dime now that i've divested most of my CLSI holdings. but - i can live with that, reduces my aggravation not to have to wonder about how many weeks or months late they'll be, ever time another filing comes due.
ETLT i'm going to stomach the aggravation and keep holding because i want to see the upcoming K and Q. but i admit that the major negative of their mickey mouse filing circus is making me think i want to scale back my ETLT exposure.
Posted by blue_in_MI on :
freakin' FINALLY!!!!!!
has taken absolutely forever, but FINALLY they managed to actually get the 10K out:
unbeleivable how long it took, absolutely no excuse for the absurd delays and parade of keystone cops excuses.
but - as expected, is a damn good.
a good 4th Q pushed them up to a net income of 12 cents a share on the year, so it traded at a trailing P/E of almost exactly 3 for most of the day. twelve cents, that is pretty damn good. nice ramp-up in revs the last 4 years: $12.6M, $15.5M, $16.8M, and $23M. by my quick calculation, shareholder equity now checks in at a nifty $1.42 a share, not bad for a stock that traded at .37 most of the day.
this is the most frustrating stock has ever owned in many ways, especially because it is my largest OTC position - even larger than ALMI. their incompetence in getting the 10K out on time this year is inexcusable imho.
but - once it was FINALLY out, the numbers definitely didn't disappoint; i will give them credit for that. i expect a significant gap up on monday. still have to read the 10K in it's entirety, but - not much doubt that it kicked some major ass.
Posted by blue_in_MI on :
one of the knocks against ETLT has always been that their big cash position was earmarked only for use in china. is interesting, with some regulation changes, there has been at least a mild change in that regard, though too early to tell how it'll pan out.
the part of the filings that on the last 10Q read:
"Although the Company has a cash and bank balance of $21,329,840, it has all been designated by management for expansion of its operations within the People's Republic of China. Therefore, if the Company is to expand outside the PRC, as it anticipates doing, or pay its non-PRC obligation, it will have to sell additional shares of its stock or borrow funds from third parties."
now has been changed in this 10K to read:
"Although the Company has a cash and cash equivalents balance of $18,224,488 and short-term investments of $9,909,084, management believes that the best return for such cash and short-term investments is in the People's Republic of China. Therefore, if the Company is to expand outside the PRC, as it anticipates doing, it will have to sell additional shares of its stock or borrow funds from third parties. However, because of the loosening of currency restrictions in the PRC, it can pay its non-PRC obligations from its funds held in China."
some of how this week goes for ETLT will depend on the 10Q which should also be out shortly. it's seasonally their slowest Q so i don't have big expectations, and doubt the 1stQ will show big numbers. but - is clear that ETLT is working to "smooth out" their revenue instead of having it all concentrated in the last two Q's per year. E-Sea revs will be basically nonseasonal and should help in this regard.
In comparing the results with their pre-stated "guidance" from back in december: looks like net income came in a little lower than they expected (earned about $1M in 4Q, rather than the $1.2M they guided for), but - revs came in quite a bit higher than they guided for (almost $6M in the 4thQ, compared to guidance of about $4M).
note that also they seemed to not include the 5-6M shares that they issued to purchase e-sea (which i still believe was a great deal, btw) in calculating the .12/share bottom line: next Q we will see about net profit based on 39M rather than 33M shares. actually i think this is one thing ETLT messed up in their unaudited comments on the bottom of page 32 of the filing. they mention .18/share if they were to have had e-sea all year, but - unless i'm missing something, this number should have been based on the full share count of 39M rather than the 33M they apparently used. so really would have been more like .15/share,unless i'm missing something...?
my general view of ETLT is that it's a promising value stock that is unfortunately incompetent at filing on time, but - has great growth potential, particularly with e-sea. revs have ramped up quite nicely the last 4 years, topline roughly: $13M, $15M, $17M, and now $23M. i think they've done a good job in several areas, for example keeping their margins at above 30%. was clear they could never sustain the near-40% margin they were at a year or two ago, but - i'm impressed by keeping it above 30%. they've also clearly made moves to put their large cash position to work: the new dairy project, and e-sea. i look at both of these as long-term projects: neither will have a gigantic initial impact on their numbers, but - both (particularly e-sea) i think will continue to grow and add to their numbers down the road. i could be wrong, but: my view of ETLT is that it's a long-term hold. sounds like other projects/acquisitions may well be in the works as well, though so far the mango/wal-mart thing mentioned on their website has still yet to be formally announced. i don't expect the numbers there to be huge, though.
their biggest expansion project of course is the dairy cattle breeding center. this will cost them on the order of $33M (reduced from the original figure due to tax-free nature), and they're projecting 5 years out additions of $12.5M to revs and $2M to profit, and the ROI point perhaps in year 6 (was 7, but - tax changes since helped). will be funded mostly via their cash position, which imho is a good idea: no one seems to care about their cash position, so might as well put it to use in generating profits and growing the company. will clearly take awhile for these to add to the bottom-line, but - i like their long-term idea of putting their cash to use.
one nice thing about e-sea: seems to have a quite nice margin. for 2006 it looks like e-sea might provide perhaps $2.5M in revs, will be interesting to see the growth rate it takes after that point. i'd certainly hope that it would continue to rise up quite a large amount in later years. also at this point it's hard to speculate on what other projects they might get involved with, they do seem to be continuing to actively seek to expand further. we'll see.
Posted by blue_in_MI on :
surprised that ETLT was still in the mid .40's much of the morning after the 10K fri after the bell: broke .50 but only briefly.
i thought volume would be higher today as well: figured we'd see a 2M share trade day, but - only about 800K so far today.
Posted by blue_in_MI on :
10Q out after the bell today. actually a little better than i thought, seemingly thanks to one large lamb sale. earned .015 on the Q on about double the revs of last year.
not too bad, considering it's always their slowest Q and they actually had a mild loss in the same Q last year. next 2 upcoming Q's are historically their biggest.
pretty much no volume today: only 27K shares traded.
hopefully the danged E will now finally be off soon, man was i tired of looking at it
Posted by blue_in_MI on :
decent bounce this morning, back up to .52-.53 range on about 400k volume.
Posted by blue_in_MI on :
dipped to about .40 last week, bounced yesterday to .48 based on Q results released:
am still digesting the full Q, but at first glance:
* overall revs slightly ahead of last year: total revs slighly lower than i thought/hoped, but e-sea larger than i would have guessed: already over $2M the first 6 months alone
* earned .04 on the Q: was hoping for .05, but - still not bad.
balance sheet continues to improve, .91/sh in cash or equivalent. i still hold about 8-10K shares of ETLT, used to own more but i just couldn't stomach the constantly late filings, they bugged the crap out of me. i'm going to keep holding the balance, i'm encouraged by the e-sea numbers moving up.
Posted by blue_in_MI on :
wow, going on 2 years now have been posting about ETLT, owned it for 3 years. *finally* ran this week, topping out at .97 today. has sure been a long and often painful wait for me, heh.
odd thing is - no particular news or anything to drive it up; just kind of ran of its own accord. as disclosure - sold half near the open this am, but - am still holding half long-term.
anyone else still holding this one?
Posted by blue_in_MI on :
back down to .60 again, *sigh*. one of the most frustrating stocks have ever owned, but - still holding half
![[Eek!]](eek.gif)
... i'm also rooting for you if you're in on the october A-G boycott october boycott thread on this board![[Razz]](tongue.gif)