Rande...OUCH! Three Red Flags!!! You've got me backed up on my own 5 yard line and I'M contemplating going for the "quick" kick here!In regards to JADE could you extrapolate on the significance of the "F" in a stock symbol. I know it designates that the company is foreign and that that in itself might prevent investors from buying into it just for patriotic reasons alone(BUY AMERICAN). I could also see how it might cause some concern as to whether the country is politically stable or not. Any others? In your quote...<A Hong Kong [Chinese] based company opens an office in NYC so they can get the "F" status removed from their trading symbol. That is a red flag in my book> Why is that a red flag as long as the fundamentals and financials are good as they are with JADE? Wouldn't you find out that the company was basically foreign when you did your DD anyway?
Flag #2:<They cut and polish gemstones then wholesale them [directly or indirectly?] to retailers. They use the predicted growth of E-commerce to estimate their own growth potential, yet to date, they have not sold a single stone via their own website???>
Actually I thought it was fairly clear in the Hoover Company Capsule that they sell the finished pieces of jewelry to the retailer not the individual stones or gems. As for using the predicted growth of e-commerce to estimate their own growth potential,they didn't. All they said was that they felt their website would have the potential to increase sales in addition to their added capacity to expand sales. Here is their comment again...
Forrester Research Institute (NASDAQ: FORR) estimates retail e-commerce will grow to $108 billion in 2003 from $7.8 billion in 1998.LJInternational's sales increased 107% to $14,073,000 in the first 6 months and earnings increased 72% to $1,990,000. "We feel the Company now has the manufacturing capacity to grow to $65,000,000 in sales andInternet sales have the potential to further accelerate the Company's rapid growth rate.
Flag #3: You said,<They spent a year and hired two web site makers to build their site and that is supposed to be good? Web sites can be built in a matter of weeks. Why did it take a year and two different makers? Will we be able to pluck the stones right out of our monitors?>
Actually that was one of the reasons I liked the company . They realized the importance of the web site and wanted to get it right the first time and spared no expense. I would not be surprised if they had close to a thousand or more pieces of jewelry to sell.I would think that would take some time to set up. BTW if it only takes a couple of weeks to knock out a web site as you say perhaps we should all call PLAYCO up and ask them what the hold up is?
And last but not least you say:<I honestly mean you no personal disrespect. But this press release sounds EXACTLY like an OTC BB press release. Whenever I see the word "billion" used in a press release, I feel I am being sold a line of trash.>
I assume you are referring to the quote by Forrester Research Institute above where they estimate the growth of e-commerce to grow from $7.8 billion to $108 billion by the year 2003 I believe they are talking about WORLD WIDE e-commerce in the next Three Years in which case I believe their numbers are valid.
So Rande... here I am on the five yard line..do I punt? You can Call Me Krazy, but I think I'm going to go long.
P.S. You were right about JADE probably going up. Closed at the high today,6 3/8, up 13/16 ;) |
