Monday, August 15, 2005
China Cable & Communication (CCCI)
Sales kicked in during 2004 at $4.7 million with a gigantic net loss of $6.8 million. Revenues for Q1 2005 were $1.5 million (with a half million dollar loss) vs $0.9 million in Q1 2004 (with a $1.6 million loss). Positive cash flow from operations on both, even after factoring in capital expenditures.
Revenues increased over last year entirely due to sales of set-top boxes and cable modems and premium services that they didn't have last year.
There are 77 million shares and 200,000 cable subscribers: 385 shares per current subscriber. They intend to expand (including a subsequent joint venture that doesn't seem terribly promising, but who knows). The share count will almost certainly increase as they need to pay off a $4 million litigation settlement related to preferred shares. There's a good chance that the company will go into bankruptcy depending on the outcome.
The price for this wonderful opportunity is a mere 10 cents a share, for a market cap of $7.7 million. $38 per subscriber.