Telestone's Got Serious Cash Issues

• Report this Comment On May 31, 2011, at 6:21 PM, mannaa wrote:

  With all respect I have to say you lost your credibility, only the dumpiest will listen to your opinion, It took you that long to figure out the financial issue after the stock start moving against you, what a coincident!.

  Many investors got hurt by listening to bad articles to find out later they sold on huge lose blindly.

  Now most of the emerging market stocks are gaining market share.

  Sorry I am not moved by this article, not this time.

• Report this Comment On May 31, 2011, at 9:41 PM, surprisesilk wrote:

  I think the author is a short seller in disguise. It is common to see high growth companies like TSTC have negative cash flows. All A/R are with big 3 telecoms in China who never have a credit problem. http://messages.finance.yahoo.com/Business_%26_Finance/Inves...

• Report this Comment On May 31, 2011, at 10:09 PM, ndshelso wrote:

  Directly from TSTS's 10-K

  "

  Accounts receivable are presented net of an allowance for doubtful accounts. Our long credit period arises because our major customers are the three major players in the China telecom market (“China Mobile”, “China Unicom” and “China Telecom”). Due to their virtual monopoly in China’s telecom market, we are at a disadvantage in negotiations regarding payments and credit periods. However the “Big 3” telecom carriers are state-owned and recognized as “blue-chip” customers. The Big 3 China telecom carriers are our major customers, and 99% of the revenues of 2010 came from them, thus our accounts receivable are a function of our business model. Once a contract is signed, we receive 60-70% of the contract value within 4-9 months, another 20-30% in 9-12 months, and the remainder in 12-24 months."

  I don't the the big state-owned carriers will not pay, they are just flexing their arm to delay pay.

• Report this Comment On June 01, 2011, at 11:24 AM, MKArch wrote:

  Inefficient or another China RTO fraud? You might want to look into the S.A. article detailing problems at this RTO. I don't remember all of the issues but I do remember they claim to only recognize a particular large revenue stream when it will be collected in the coming 12 months in their revenue recognition statement but the revenue numbers showed they had to be recording over a longer time frame than that (if you believe revenues).

  Management held a press conference shortly after the S.A. article came out to supposedly put the issues to bed. In the cc the CEO explained that revenues were collected over a 2 year period and thus revenues recorded were collected over an average of 18 months but he did not explain why their revenue recognition statement said otherwise. A caller tried to press him on this but was cut off of the call.

  You might want to dig a little deeper into this one. The 3X P/E might also be a clue that this company has bigger issues than timing of cash collection.

• Report this Comment On June 01, 2011, at 11:38 AM, Medicalrecordman wrote:

  TSTC is a total P.O.S. in my view and no way they'll collect what they're owed from China's major 3 telcos. TSTC deceived everyone last Fall when they touted their new line of credit, making everyone think they wouldn't have to raise money ... and then .... WHAM !! Capital raise at $12. Lousy company at best and actually overpriced in comparison to other China small-caps.

• Report this Comment On June 02, 2011, at 1:01 AM, surfermikeds wrote:

  all i know is im getting sick of all these short attacks on alot of the stocks i own. if you dont like tstc which i guess you or some of your friends are shorting , why dont you find a stock you like and write something positive about it? i wish they would do away with shorting all together . then if you dont like the stock you could just sell your shares and move on . there would be none of the alterior motives of profiting off of it . then you would not sit around trying to find problems with all these stocks . sa is the biggest offender . want to see where there telling the truth . its not really a fair playing field . if wanted to post an article what i thought of a stock , i dont believe i could. were at the mercy of you who post them . i have to keep tight stops on all my china stocks because i never know when one of these articles is going to written that will cause my stock to drop 20 30 40 percent in one day . so i wind up getting stopped out alot a locking in losses. im just sick of it .

• Report this Comment On June 03, 2011, at 9:02 PM, mannaa wrote:

  I am trying to constrain myself from saying bad thing about this author, this is the most dirty way to make money these days in the market, it worked and they keep doing it, I just found out that before this post was published the naked short seller having hard time recover or maintain their “naked short sale” shares and technically the stock is about to break to upside which mean huge loss on short squeeze.

  More likely the investors realized the trick this time and didn’t throw themselves out of the window!

• Report this Comment On June 07, 2011, at 11:10 AM, Dilwinkle1 wrote:

  I'm not buying the company line that it can take 1 to 2 years to collect from the big 3 Chinese Telco's. How come some of the competion like GRRF have no problem collecting much sooner ?

  I think TSTC is a legit company, but the CEO a one Mr Han, decided best way to project massive revenue streams was to give the store a way In return for inflated stock price. Which is not gonna happen with all the China RTO scandals.

• Report this Comment On June 08, 2011, at 8:25 PM, mannaa wrote:

  If the CEO buys more shares as he said he will, then many will have more trust in his company and will get the stock price up to where should be ($10...$12).

• Report this Comment On June 11, 2011, at 10:50 PM, manaxl wrote:

  the price is right. just stop being histerical and have patience. long or short seller can either win or lose their money every day. be a value high divesificated and stay beside the river

• Report this Comment On June 12, 2011, at 12:56 AM, manaxl wrote:

  one possible reason the big three aren't paying yet? they secretly compete to buy the whole thing. each of them. and they are trying to delay to put their cash in anyone else pocket. figure this? fools? do you know how large and populated china is? can you figure how many devices they're gonna put up for the next years? they have no debt. Short sellers have a lot......

• Report this Comment On June 25, 2011, at 2:22 AM, hedgeslayer wrote:

  The other reason the big 3 aren't paying is they have their own accounting problems,and are trying to make them selves look better on paper on the expense of their sub-contractors! If any one reads this,an artical came out on the big 3 with their accouting pactices and their auditors almost walked out because of their unpayed accounts payable!Where is the artical for companies like TSTC that are waiting to get paid by them!The Motley Fool must be short this stock to not scoop every one else on such an artical!History has proven that TSTC A/Rs eventually get paid!Just because they are a RTO,doesn't mean they are a fraud!If that was so,Berkshire Hathaway should be thown in the same pile!Jump on them shorts,with your scare tactics,I dare you!

• Report this Comment On August 10, 2011, at 7:07 PM, ironyworks wrote:

  When i bought TSTC and a number of other touted Chinese stocks,based on the Fool's recommendation..

  I assumed that they'd done the due diligence that i, as an English speaker, could not.

  Apparently the Fool misguided me and many others in this regard, and betrayed the many years of trust i'd had as part of the Fool community.

  Gotta admit,i'm disappointed and disheartened.

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