Scrapps, you havetaken a position in DWSC? You did a vry good job analyzing the shorcomings of ZOOM few months back, and you were right, don'y you see this one for what it is? Some nice Chinese trying to get some hard currency before the gates close on Hong Kong? Look at the facts (from memory) the first deal was for 1000 cabs at 100,000/cab and they were going to make a total of $7.8 MM earnings yearly (there number) not even 100 basis points above the 30 years treasuries. The next deal is for 5000 cabs (which they have to buy) and a license (which they have to pay) but now, the "chinese" numbers indicate $10,000 profits per cab or $50 MM bucks how come the profits per cab are creeping up? How about the cost of establishing a completely new infrastructure (servicing 5000 cabs, or for that matter just knowing where each is at any time).
The $100,000,000 will become (if it has not already) reg s stock dumped here. And so will the borrowing required for the new fleet (and of course our chinese friend will collect a nice commision on each cab sold to the company) and will become additional stock.
Somehow, every Friday, they are managing to come up with a new very positive news release, where I am from, deals like that take armies odf lawyers to complete. I say this is a pump and dump campaign if I have ever seen one.
Zeev
PS, American investors are becoming smart, since no one is buying the story, after a flurry to 9, the last release brought nothing in price appreciation, and next week will be a dud. |
