Sunday, March 04, 2007
CHVC, CHWG, CPHI, CPNE
CHVC, CHINA VOICE HOLDING CORP., website, sec, yahoo, chart, Com ($0.001)
A telecom company selling voice-over-IP stuff dealing with China. No relevant SEC filings. The only financial statements I found were here. 80% of the company assets are intangible assets (goodwill and a patent). Q1: Revenues are down. Gross margins below 30%. Operating expenses are nearly twice as high as revenues. Big losses. 88 million shares. 6 million warrants. Also preferred stock. They were recently awarded a Chinese patent. If you're not in the specific industry, it's not likely that you can predict whether this will be successful or not (and even then, it's probably a crap shoot).
Q1: Revenue=$4.7 million, AR increase=$2.6 million
Q2: Revenue=$4.0 million, AR increase=$0.8 million
Q3: Revenue=$5.0 million, AR increase=$2.2 million
Then on Feb 1, 2007, they raised more money by offering 2.5 million shares and a bunch of warrants.
See what happens in the 10-K.
They charge members a monthly fee for tools/services to create and run Internet auctions. Also coaching services. Also value-add services: prescription drug plans, roadside assistance, tax/legal services, real estate listings, etc.
Just looking at the main website, they have a cheap trial offer but if you don't cancel it, you get stuck with $50 per month in charges.
It seems like this business could get mauled at any time due to any number of causes (such as some massive competitor or simplification by eBay and others). The business earned about 15 cents a share totally diluted in 2006. Good margins. Reasonably good cash flow. But the stock isn't cheap at around $2.50.