China Health Labs & Diagnostics Ltd CHLBF

No News dragging CHO down

[Grove1]

Looks like some shareholders are loosing patience waiting for 1st quarter results/update from management so they are dumping their shares today. No news is bad news I guess. I have high hopes for Q1 results. If they dont disappoint the stock will go straight up. If Q1 is not so good (but not so bad) then we could get more selling especially if the general market goes down. Right now though stock looks like it is on sale at around 90 cents !

[rocarocket]

I've had this stock on my watch list since Moriarty wrote about it.What concerns me is the large receivables balance.  There have been so many Chinese companies listed on the Nasdag that get pumped then later come out with revenues that were over booked.  Hope it doesn't happen here.

[TheRock07]

It looks like the same house selling the end of their position today, after dumping yesterday.This is a great buying opp...

[Grove1]

I agree that with over $20 million of their assets being a receivable this is quite high compared to total assets of only $37 million.  What gives me confidence that most of this is collectable is the main client is the chinese government in one form or another. So if CHO has the stong relationship with them and they want to nurture that relationship they should collect. Also the auditors

[TheRock07]

Am I not correct that, because of new accounting standards this year, companies have been given an extra month to prepare their quarterly financials which might explain the delayed quarterly ?

[TheRock07]

I have confirmed that new fianancial standards , implemented for 2011, provide companies with an extra month for initial reporting of their fianncials.

[honzol]

The Clarus report makes reference to the abnormally high receivables as a result of the company booking most of its revenue in the fourth quarter.