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.
August 19, 2015
CBLY plans to be compliant, as far as their information reports to shareholders are concerned by September 6, 2015. Audited financials will come much later. When they first asked for a hearing three weeks ago the stock was 0.26. Now the stock is 0.616. There are virtually no sellers.
I have been checking the short sales on www.otcshortreport.com and in the last three weeks 13,300 shares were shorted. For a short period, three weeks ago, the offer went to $7.00. The shorting specialist was not around during that one hour period.
I started my short count last January and since then, 70,000 shares were shorted with zero re-purchases. I assume there were some shorts before that When the official announcement comes, I would not be surprised to see CBLY over $2.00.
Since I started the two CBLY web sites last January, I made my e-mail address available thinking a few readers would send a note. Nobody has written.
Have a profitable day !
July 25, 2015
We reported two months ago that a suit was filed against CBLY and some of their officers and board members. This case was still pending. Yesterday, at 4 PM Pacific Time a Meeting was requested by Dean Allen Morehous, an attorney for Troutman Sanders representing CBLY.
Troutman Sanders is an international firm with offices in Beijing. My hope is that CBLY plans to go private with a reasonable offer for the 6.7 Million free trading shares held by US shareholders.
My estimate of book value as of August 2015 is $125-$150 Million which about $4.50 per share. The average cost to investors for US held shares is probably over $2.00.
Based on other Chinese companies held by US investors, an offer of 25% to 50% of book value is possible. There is a short position estimated at 50,000 shares that will be scrambling to cover.
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