Wednesday, August 10, 2005
China BAK Battery (CBBT)
CBBT seems like a fine company, but it's not selling cheap.
In other companies...
I also get a lot of development stage companies (why are these public?) like Caneum (website). I like how Google asks, "Did you mean 'Cranium'?"Is it a good investment? How the hell would anyone know? Actually, given the financial statements, the employees ought to be surfing the web at Monster.com.
And here's proof that accounting is a purely cold blooded profession:
Net income for the full year 2003 was $737,000 or $0.07 per common share on a diluted basis compared to a net loss of $325,000 or ($0.03) per share for the twelve months ended December 31, 2002. Net income for 2003 was favorably impacted by $500,000 ($0.05 per common share on a diluted basis) of proceeds from a life insurance policy paid upon the death of one of the Company's key employees. Net income was also favorably affected by the reversal of income tax accruals referred to above resulting in an income tax benefit recorded for 2003 of $106,000 ($0.01 per common share on a diluted basis).Sorta gives new meaning to "non-recurring event", unless they plan to kill off one key employee every quarter. Please, God, when I die don't let my key member life insurance cause more than 50% of the total earnings of the company I've founded.
So you'd think that somewhere in the discussion, they'd mention in somber tones the death of an employee. Nope.
"I am pleased to report improved results from operations for 2003 compared to the prior year" commented Louis P. Scheps, President and CEO of the Company. "The Company's new vital signs monitor has been well received both domestically and internationally resulting in increased penetration in markets for our products" stated Mr. Scheps. "The Company has also posted a record ending backlog of open orders for its products which provides a firm foundation for our first quarter goals" Mr. Scheps added.I take it Louis wasn't the key employee from the previous paragraph.