Cacola

Buy now or wait? Price already up 7.7%!

yeh,
a)  As of December 31, 2009, it had a sales and distribution network of 105 specialty stores under the CACOLA brand name
investing.businessweek.com/research/stoc...ot.asp?ticker=CCF:SP
b) inventory can include the raw resouces/ material required to make an finished products.
Sometimes it doesn't really matter, all these foundemental analysis, like what bestworld says, its already rise 7.7% to 7 cents in the morning. Although it has fallen back to 6.5 cents since. if u you think its worth it, buy, maybe there will be a coporate raider to buy the business and unlock its cash and delist it. So luck still has its significant impact in every stock investment decision
I have no shares of cacola, I wish all sharesholders all the best and may you HUAT LA!!

What could catalyse the stock price? I dont see any.

A) No fund manager would touch this stock - as it is too small-cap and too illiquid and it is in a business that is not sexy.

No investor relations - Cacola has no one outside or inside the company to bring the message of recovery to investors.

C) Tho 2Q and 3Q have turned profitable, the amounts are not massive. (If 4Q is good, there could be some upside by 1 - 2 cents.)

So what might go on in the next few months? It would be the brave fundamental investor who would buy a small stake, in recognition of the possibility of a re-rating at some point in the future for the stock.

Closer to full-yr results announcement, there could be more accumulation up to 7-8 cents.

Just my 2 yuan worth
 

Laggard stock.  12 months ago the shares were at 6 cents, same as today!
The business has turned profiable with 2Q and 3Q showing profits and rising cash balance.
This is possibly the stock with a high % potential upside in 2011. Watch this space.

Vested...worth the risk!!

After reading the posts on Cacola, I have observed 1 thing about the stock - there is always a big Q to buy at 6 and a big Q to sell at 7 cents.

6.5 is where trades get done - not a lot, but that's where people get off or get on board the Cacola train.

Why so many sell Q at 6? Why so many sell Q at 7?

Anyone has a theory?

The most sexy aspect of Cacola is the cash of RMB180 million, as everyone knows by now. However, RMB176k of quarterly interest on 180m of cash is what it has reported, which is only 0.39% interest per annum.

I finally found someone who can explain this as he has asked the management before. Most of the cash is not kept in Fixed Deposit. It is in current Account which doesnt earn interest. And the reason seems to be that they don't want to lock it into a FD since they have plans to set up showroom or retail outlets or whatever. My friend can't recall exactly what.

Now, we are just a few weeks away from its 4Q result. It should be a profitable quarter or else, they have a lot of explaining to do.