Sinotel Technologies

pharoah88: actually, a placement is not all bad news. a placement raises $ for the company to do more business, which in turn expands its profits. a placement also brings in new investors - usually, they try to get a few institutional investors.

SINOTEL AWARDED FIRST PHASE OF CHINA UNICOM’S 3G ONLINE SALES AND MARKETING SYSTEM WORTH RMB15.3 MILLION • Contract is a first of several phases to be awarded by China Unicom’s Headquarters • Group’s current order book stands at approximately RMB350 million. Part of a several phase roll out, China Unicom (the “Telco”) has indicated that the total budget allocated for the 3G Online Sales & Marketing System is approximately RMB150 million, expected to be completed over a period of the next eighteen months. --- All Sinotel shareholders should cheer this news! :laugh:

Sinotel has obtained the approval of the Shenzhen Development Bank to provide credit financing of up to RMB40.0 million to fund the Group’s on-going working capital needs. Together with the existing facility provided by the DBS Bank and the Hong Kong and Shanghai Bank , the new credit line will avail the Group to a total credit facility of RMB130 million, giving it additional source of working capital to fund its on-going projects. Should all the facilities be fully drawn down as at 30 September 2009, the Group will have a debt to equity ratio equivalent to 0.23 times. All three credit facilities will provide flexibility to the Group in managing its working capital as they are revolving in nature, i.e. interest is only chargeable on the amount drawn. Under the agreement which is similar to the two existing credit lines with the DBS Bank and HSBC, Sinotel has to present actual contracts secured from the mobile operators to the Bank before being allowed to draw down on the facility. This is somewhat similar to a factoring loan with the exception of a cap on the facility granted. Subsequently, payments received from the mobile operators would have to be channeled through the Group’s account maintained with the Bank. This arrangement provides an additional layer of checking from the Bank on an on-going basis. ***The last par about the payments going into the bank accounts - hey, this is novel and very reassuring.:laugh:

Harlequin wrote:

oh thank you gerald8. It is indeed a very insightful article. To me the eye-opening parts are that Q4 may be soft and the identity of the writer & his declaration of a shareholding in Sinotel since Jul 09: C) 4Q may be soft Several projects have been completed ahead of schedule in 3Q, due to the pressing timeline given by customers. Most existing contracts are scheduled for completion in 1Q10 and 2Q10, rather than 4Q09. Thus, 4Q09 may be soft and it is unlikely to replicate the 3QFY09 57.9% yoy and 52.0% yoy growth in both revenue and profits respectively. DISCLOSURE: Writer has been vested since July 2009. Ernest Lim is an assistant treasury and investment manager at Infocomm Development Authority of Singapore (IDA). Prior to joining IDA in 2009, he was with Legacy Capital Group Pte Ltd, a boutique asset management and private equity firm, as an investment manager since 2006. He received a Bachelor of Accountancy (Honours) from Nanyang Technological University in 2005. He is a Chartered Financial Analyst, as well as, a Certified Public Accountant Singapore.

Ernest has to disclose his shareholdings because it is CFA requirement when it comes to writing a company report. As for his government/stat board current job, it is alright to write freelance? but interestingly this bit is omitted from his profile here but not at the original source. Think sinotel has got a good story. it tells the tale of why it matters when you buy it. When too many retail people start buying into the company, especially when they know nuts about China and the intense competition there, there is bound to be broken hearts. Main misgiving about the stock is that like the fibre-optic boom, railway boom in america, somethings got to give. over supply tends to be a reality. go google.

dear \'coverup\': i dont thinj there is an oversupply situation here. there is alot of work to do for companies like Sinotel to get the 3G network up & running all over China. the country is so massive, it will be a lot of opportunity for Sinotel and its peers which trade at 16-20X valuation on HK exchange, Nasdaq, etc. it\'s a boom period that will last 2010-2011-2012, then it\'s on to something else - donchknow what. meantime, Sinotel should be worth $1. Just my 2 cts worth :laugh:

About two weeks ago, i read somewhere (cannot remember exactly where) that there are 10 companies like sinotel in China. So it is not a monopoly. What is sinotel\'s ranking amongst its Top 10 competitors? What is sinotel\'s marekt share, its strengths and weaknesses? Will sinotel get most of the projects all the times? Thanks