Important Post on XNET
Just some things to think about.
Francous has talked to the CEO and gotten the investors packet.
According to that XNET is showing a profit of $450,000.
Figure it up based on O/S shares(14mill 2-4mil float) and that gives you an EPS of .03/share that not many know about. Obviously, that is not figured in to the current price of the stock. Very clear to see that.
Remember! This is an internet company. For them to be profitable after only 19 months of being in business, that is almost unheard of!
This shows you the quality and intelligence of the management. A good company to compare this with is PCNTF. Very very close comparsion. Foreign isp trading very high and making money. Not competition though.
Regarding, phone problems, expenses, and Chinese Govt--
Phone Problems- XNET uses a system called Voice Over IP, which is a trick you can do to a phone to make it much cheaper and easier to use.
Chinese Govt'--They have to get licenses to open ISPs in other cities.
They are using 2 now. They have 4 more for other cities which are being being built now and might be operating now, or very soon. I would imagine that since you have to "register" with the Chinese govt on this, that they will not let any competition in there with them. That is a key. Looks like the Chinese Gov't might be "protecting" them in a sense.
Insiders--It appears that the float is to be around 4mill, per update.
14 million are outstanding. That means that insiders are holding on really tight. That is a very good sign.
I plan to call the CEO tommorow around 4 or 5 and ask a few questions regarding operations, profitability, the Chinese economy, and growth rate of the industry. I will post what info I gather.
Best of Luck,
FM
The above info is accurate to the best of my knowledge and reserach. I can not reccomend that you buy or sell this stock. It is your decision.
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