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10.25.09 TimelessWealth.net: Technical Trading Idea with China Cablecom
Holdings, Ltd. (NASDAQ: CABL).
October 22nd, 2009: The New York Times, along
with thousands of international newspapers, business journals,
and other media outlets, reiterated China’s reported 8.9%
economic growth in the third quarter of 2009. The Times
wrote: “The state-controlled banking system has given out a
record $1.27 trillion in new loans this year […], and a flood of
initial public offerings helped quench the thirst for
investments.”
Source.
Growing
Market for China Cablecom’s Solutions.
China is the world’s largest cable market, with over 300 cable
television operators, 378 million television households, and 152
million cable television households.
-
China
Cablecom Holdings (NASDAQ: CABL)currently operates 28 cable networks with over 1.67 million
paying subscribers.
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China Cablecom Holdings (NASDAQ: CABL)
reported a 10% increase in paying subscribers for the first half
of 2009 (six months ended June 30th, 2009) over last
year.
China Cablecom Holdings is a joint-venture provider of cable
television services in the People's Republic of China, operating
in partnership with a local state-owned enterprise authorized by
the government to control the distribution of cable TV services
through the deployment of analog & digital cable services. China
Cablecom Holding employs 3,566 workers, fulltime.
Market
Capitalization: non-reflective of a growing cable television
provider.
China Cablecom’s market capitalization is $6.5M based on 9,244,469 shares issued
and outstanding.
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China Cablecom trades at nearly an 80% discount to the market
with $31,145,513 in cash on their balance sheet. Due to the
large cash position, China Cablecom is able to pay debts when
they become due as well as reduce other outstanding
liabilities.
October 9th, 2009:
China Cablecom arranged for the cash payment of $13.9 million in
Senior Secured Notes,reducing the company’s debt.
Source.
-
China Cablecom’s EBITDA was $5.3M for the first half
of 2009 (six months ended June 30th, 2009);
annualized, $10.6M (assuming growth does not occur),
or a 38% discount to the market.
-
Adjusted to China Cablecom’s book value per common share
($2.13), the market presents an opportunity for a potential 202%
ROI (return on investment).
Mr. Pu Yue, CEO China Cablecom, made the following statement
during the company’s semi-annual financial report: “Despite the
challenging financial markets […], we set record revenue,
EBITDA and paying subscriber levels at our operating subsidiaries
during the first six months of 2009. We remain conservative in
managing our operating costs and expect to be on schedule to
decrease our corporate overhead by more than 50%.”
China Cablecom reported consolidated revenues for the six months
ended June 30, 2009 were $10.7 million compared to pro forma
revenues of $9.1 million for same period in 2008. The increase was
due to growth in paying subscribers and revenues generated in
subscription and installation fees.
Experienced Senior Executive joins China Cablecom.
October 21st, 2009:
China
Cablecom Holdings, Ltd. (NASDAQ: CABL) announced the appointment
of Emmanuel J. Olympitis
to Its Board of Directors and Audit Committee.
Source.
From 1999 to 2004, Mr. Olympitis was formerly Executive Chairman
of Pacific Media Plc., a London Stock Exchange listed retail,
media, and e-commerce company focused on Asia.
Previously, he held numerous executive positions including Group
Chief Executive of Aitken Hume International Plc., a London
Stock Exchange listed banking, insurance and fund management
group. Subsequently, Mr. Olympitis was Executive Chairman and
Managing Director of Johnson & Higgins Ltd., during which time
the company won the Queens Award for Exports in 1994.
Mr. Olympitis' background includes investment banking where
he was appointed head of all Eurodollar syndicated loan
activities for Bankers Trust International Limited in
London. There he served as Executive Director where he
managed international initiatives of several billion dollars
into South America, Greece and Eastern Europe.
TimelessWealth.net has analyzed China
Cablecom Holdings, Ltd. (NASDAQ: CABL) from a technical
perspective and offers a complimentary annotated chart. To view
- click here.
Summary.
Trading more than 60% under its 52-week high ($1.94), and at a
substantial discount to cash position, book value, record revenue,
EBITDA, and growing clientele, China Cablecom Holdings, Ltd.
(NASDAQ: CABL) presents an overlooked trading opportunity. Among
the most powerful correlations in the equity market, the agreement
of technical and fundamental analysis signals limitless potential.
We strongly encourage investors review this technical trading idea
relative to the company’s expansion, competition, and presence in
a growing economy. All the best.
Sincerely,
Edward Stevenson.
Timeless Wealth Staff.
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