Fundamental Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Fundamental Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Spekulatius who wrote (788)	1/10/2009 2:56:55 PM
From: bruwin	Read Replies (1) of 4719

It seems ironic that the day after I comment on AOB, having not mentioned the stock for quite a while, its price falls by over 21% !! Mind you, I hadn't checked its SEC filings. Like you said, AOB have reported a property purchase. Below are some pertinent details .... "The purchase price was $69.98 million in cash. The source of the cash used for the purchase was from working capital of AOB. There is no material relationship between AOB or its affiliates and the Seller. AOB intends to use the properties as a Convention and Training Center. The land use rights certificate is for a period of 50 years and expires on December 30, 2054." I wouldn't know if it's a high price or not. Maybe it is. They say it came out of working capital. I see that they had about $220mil. in cash in their last Balance Sheet. It seems they intend to use the property as a Convention and Training Center. It's hard to believe that the company's management would have taken this step if they thought that it would affect them financially to a large extent. Anyway, time will tell. As usual its future financial numbers will reveal its ability to be profitable, ... or not.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next