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.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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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.
posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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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.
posted
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.
posted
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).
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
posted
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.
posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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).
Posts: 1698 | Registered: Mar 2004
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posted
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!
posted
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.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
i rarely ever average down, but - added a little more ETLT at .28, can't believe it's that low.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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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
posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 9110 | From: boston, ma | Registered: Jan 2004
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posted
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*
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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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?
Posts: 1698 | Registered: Mar 2004
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posted
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
Posts: 1698 | Registered: Mar 2004
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posted
interesting midday dip to .49, am keeping my finger on the buy button in the event of a panic slide, we'll see.
Posts: 1698 | Registered: Mar 2004
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posted
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.
Posts: 1698 | Registered: Mar 2004
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posted
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.
posted
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
Posts: 1698 | Registered: Mar 2004
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posted
risky maybe, but - just added at .42. i think ETLT has a few more future runs in it, we'll see
Posts: 1698 | Registered: Mar 2004
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"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.
Posts: 1698 | Registered: Mar 2004
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