Sinotel Tech Rights Issue - For?

rmb52 million is a drop in the ocean - can't do much with it if you have big plans to take on big projects. Sinotel's working capital needs are high - so it needs the placements and rights issue.

We can only hope the cashflow and the trade receivables get better so they can fund expansion projects. Anyway, not exactly the market's favourite stock .

There was strong profit growth in 3Q. Good quarter, unlike previous 2 quarrters ....got scared that Sinotel was flattish.

Trade receivables as at end-Sept was much higher than end 2009 months.... at 532 m rmb, compared to 385. Big negative here.

The outlook is better with its business model changing from project-based (and high receivable-based!!!) to recurring revenue stream.

Anyone can share his views?

LATTEST DEVELOPMENT
SINOTEL WINS RMB27.8 MILLION CONTRACT FROM CHINA UNICOM TO PROVIDE NETWORK OPTIMIZATION SOLUTIONS

They seem to be more active these few weeks. Stock is a laggard with PE only 4X, but the receivables are high and the working capital needs are going to continue to be high as they win more projects.

How are Sinotel's ADR doing? Any news on it. I am aware there was much banter when Sinotel first proposed the ADRs.
There may be reasons why Sinotel is trading at 4 times PE, that is, the market has priced the company as such. The company should focus on increasing ROE than PE, because the former means that it is working for the interest of the shareholders.
The stock is definitely higher than March 2009, but it is a far cry from the peak. I see little if no up side. Its good ol days are over for the stock.

Woke up from the dead liao .... stock is up 2 cents on active trading. Now at 33.5 cents.