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.
May 8, 2015
There was a CBLY news release last Thursday that some shareholders were suing the Company and its Directors for not releasing any news and thus resulting in lackluster stock price performance. The Company reported news to the SEC until April of 2013. Because of this corporate news black-out, stock volume and prices have been reduced to minimal levels and most shareholders have large losses. When the Company assessed risk factors in 2011, 2012 and 2013, going dark with a news blackout was not mentioned or considered. This suit holds the Company and its Directors liable.
Based on Company published student numbers of 16,300 and company advertised tuition rates averaging 27,500 yuan per student, gross revenues can be calculated. Chinese Education companies pay no Chinese income tax and they often bring over 50% to the bottom line. Because of typical risk factors, US listed Chinese companies often sell at P/E's below 10. With these numbers, earnings of $1.19 per share can be calculated for the fiscal year ended August 31, 2015. CBLY should be selling at over $4.00 instead of $0.25 bid and $0.28 offered.
I am hoping that this suit will result in resumption of news for Company information. CBLY's chairman and CEO, Dr. Ren Zhiqing, his son and cousin are Directors and own more than 70% of the Company. Dr. Zhiqing earned his Bachelor's and Master's degree in London and is listed in Facebook and several other social sites. Dr. Zhiqing was very disappointed when his only US Director was indicted in the Collapse of Longwei Petroleum. When that occurred, CBLY severed relations with their US stock promotion, accounting, legal and auditing firms that had represented the Company for several years.
Hiring native English speakers, especially Americans, has been a keystone of CBLY's Bilingual School from the beginning. It is my belief that American shareholders with patience and staying power will be eventually well rewarded
May 5, 2015
CBLY made a new 12-month high today of $0.65
on 1000 shares volume. Someone has shorted at least 40,000 shares at $0.50 the last six months and his 60 day order may have expired. If this shorter goes away, we have open sailing. Checking the Level II quotes, there are 1,000 offered at $0.58, 5,890 @$0.60 and 1,000 @$0.75 . Less than 10,000 shares should get us to $0.75
March 19, 2015
Finally I am getting this new web site going. I started researching China Bilingual (CBLY)last year. I signed up with a Chinese American legal firm and an investigator living in Taiyuan, Shanxi Province. CBLY owns two large boarding schools: the Shanxi Modern Bilingual Schools (SMBS) , North and South Campus. With 16,300 boarding school students, they have an active Chinese web site and it took a while to use the Google translator to navigate this information source. CBLY also publishes two brochures per year to attract new student. Those brochures show the latest tuition rates and the latest number of students. Multiplying the tuition by the number of students gives a good estimate of corporate income and for the 2014/2015 gross income is estimated 460 Million yuan . Since educational companies pay no income tax, they typically bring 50% to the bottom line. In the case of CBLY Converting that with the latest exchange rate and assuming that there are still 31 Million shares outstanding results in earnings of $1.20 per share.
For more detailed information please click on: www.cbly.info
China Bilingual Education