Wednesday, September 06, 2006
Note to ETLT, numbers in parentheses mean negative
For the third quarter of 2006 the company anticipates that its income will exceed that of the second quarter ($1,658,700) and will significantly exceed the earnings of the third quarter of calendar year of 2005 ($1,068,308).Investors are a nervous group. They've learned to be nervous because managements of public companies are so often trying to deceive them in all sorts of clever ways. Far too often, management will create a wonderfully enthusiastic narrative forecast for the future followed immediately by numbers that show the exact opposite.
When we read that third quarter earnings will be so wonderful, we're looking for the bad news. So when ETLT puts prior earnings numbers in parentheses, we immediately begin a frantic hunt for where this huge loss is coming from. I don't need that kind of panic early in the morning!
They also wisely provide "more color" on these strange new business ventures:
The company's business continues to evolve with the changing conditions in China. The company is currently conducting due diligence toward the acquisition of several additional Chinese businesses. The first is to expend its agricultural operations; the second is to expend its high tech operations (of which its medical device maker E-Sea is a part). Assuming the successful completion of its due diligence, the company anticipates concluding these acquisitions in the fourth quarter. The company's objective to fine tune its operations, fill in gaps in its existing product lines and to strengthen those which are already producing above average rates of return.The shareholder meeting is Oct 12 in Houston.
Good work but as a major investor in ETLT[ and I should not perhaps have gone so over board] they pump up the 3Q without saying anything...."fill the gaps"..what does that mean.....fill out product line"...what is that???
Confused. The potential of this company is SO huge yet the ability to express it is SO underwhelming its not funny.
With 33% more shares in the market this year than last, the EPS are suffering every year....what to do...
did you hear about what was said at the AGM ? The shares have done very well this week and someone want 2IN".....LJ