Sunday, March 12, 2006
China Entertainment Group (CGRP)
In addition to artist management fees, as a result of managing nearly every major film and television celebrity in southern China [Hong Kong], the Company has recently leveraged its talent under contract to penetrate the lucrative casino gaming industry's marketing and promotional business throughout Southern China and Macau. Casino marketing, promotional and junket services are performed by independently operated Asian companies.[Sure, these guys are successful now, but just wait until some gifted yet exploited martial arts expert within their lower ranks breaks into the compound and systematically defeats all of their guards and then gets the beautiful daughter of the CEO to turn against the business. When the Dragon enters, the shareholders are screwed.]
Jan 13, 2006: CGRP files its 10-K statement for the period ending Dec 31, 2004 nearly a year late. That 10-K shows a weak balance sheet, (all US dollars) $2.6 million in revenues and $1.1 million in net earnings. They claim that basic and diluted earnings per share are 90 cents, but the basic and diluted share count is 129 million shares. Try 9 cents!!
They paid exactly $1,410,256 in, um, non-cash dividends.
Cash flow from ops is slightly higher than earnings due to mild changes in assets and liabilities. Capex is $391. Cash flow from financing shows $1,462,136 in related party payments. The money comes in the front door and goes out the back door.
But like I said, this 10-K is almost a year late.
On March 1, 2005, they issued this 10-Q for the 3rd quarter ending Nov 30, 2004, one month before the year ended in the 10-K shown above. Neither of these are transitional reports. So their fourth quarter lasts one month?
Perhaps the screw ups and failure to file any sort of financial statements for 2005 is because some sort of Jackie Chan or Bruce Lee type person is already battling senior management in various warehouses and shipping docks in Hong Kong.
Meanwhile, the stock is selling for 3 cents on the pink sheets. I think I'll pass.
don't follow (except for entertainment value)