The civil law suit Yang et al. v China Bilingual Technology and Education Group, Inc. et al., case number 3:15-CV-01517 was filed in May, 2015. CBLY hired an attorney to represent them and in July the attorney appeared. At the hearing, CBLY agreed to resume reporting to the SEC and the attorney asked for extra time to translate and prepare for reporting. On two occasions thereafter, CBLY asked for and the court granted the extra time. In October the language of the complaint was amended as follows:
DANA POINT, Calif., Oct. 27, 2015 /PRNewswire/ -- Hand & Hand, a securities law firm, announced today that it has filed an amended complaint in US Federal District Court for the Northern District of California on behalf of two shareholders who purchased shares in the open market. The First Amended Complaint, amended in response to China Bilingual's motion to dismiss, continues to allege violations of Securities Exchange Act Rule 10b-5 but removes allegations regarding breach of duty by the officers and directors. The case name is Yang et al. v China Bilingual Technology and Education Group, Inc. et al., case number 3:15-CV-01517.
Interested members of the public can register with the court to receive e- mailed information on appearances and hearings.
Again, this was another indication that the management of CBLY wants to become a reporting company again. At least two of the current board members are fluent in English, with graduate degrees from London. One of the Board works in Illinois.
The board members do not want to have personal court judgments against them when they visit English speaking countries.
I expected some year-end selling by US shareholders to take some losses , but less than 10,000 shares sold during December. I expect that CBLY will announce earnings between $0.60 and $1.10 per share for the fiscal year ended in August 2016 with a book value above $3.
November 5, 2015
Tomorrow the latest deadline expires and my contact says CBLY was granted another extension before resuming reporting. I suggested a CBLY News release:
"Resumption of SEC reporting now anticipated for early 2016"
The latest offer has dropped to 50 cents. The latest trade was more than four weeks ago at 61 cents. By my count, there are more than 100,000 shares short at this time most by a single specialist. There are less than 60,000 shares available for under $1.00 and I think we are going to see $1.50 before year-end.
Once reporting resumes, I expect annual earnings between $0.50 and $1.10 and the stock price between $5 and $10.
News September 12, 2015
At the July meeting with the CBLY Attorney, the company offered to become a reporting company again. CBLY was given 30 days to accomplish this. The court gave them until September 6, 2015. Recently, CBLY has requested more time and they were given an additional 60 days, until November 6, 2015.
It looks like CBLY wants to avoid large judgments against their CEO, officers and board members. Becoming a reporting company again should be very positive for the share price.
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