Corporate Webpages Telestone Technologies Corp.
$100,000 invested in Telestone Technology Inc. (TSTC) stock at
the beginning of 2009 would have made you a millionaire by
today. Is it any wonder that some of our favorite researchers
like Chinese stocks better than American-based ones? All of
the standard analysts we use seem to have shunned this stock
(because it is Chinese?) and thus many indicators we use such as
projected earnings or analysts' ratings simply aren't available.
Are these analysts suffering from the biases that plague us as
well? Zenith tends to shun foreign-based stocks because the
reporting requirements aren't as strict as for those in the U.S.
This is particularly true of Canadian-based stocks. However, many
Chinese stocks appear to be submitting to U.S. SEC reporting
requirements voluntarily, and Telestone is one of them.
There's a reason our favorite researchers look to Chinese
Communist/capitalist stocks for many, if not most, of their best
buy recommendations. The Chinese are out-producing Americans
and have their financial statements in better shape. Nowhere is
this more evident to us than a look at who is on the NYSE and
NASDAQ list of stocks these days. An amazing percentage,
perhaps as much as 25%, are exchange-traded funds which produce
nothing, contribute nothing, other than to provide an "index" of
the few remaining companies which are producing something.
Many of Telestone's customers are emerging Asian countries such
as Vietnam. The company is in a strong industry group,
Telecommunications. It manufactures antennas, peripherals, and
other equipment used in the wireless communication industry.
Chinese companies account for more than 70% of its sales in a
rapidly developing market area. Cash flow is a weak area for
this company costing it some, but not all, researcher ratings.
It has no debt. No one in their right mind seems to be shorting
this stock.
Telestone is one of the most explosive growth stocks to be found anywhere.
After quickly breezing through an AMEX listing, it was reassigned to NASDAQ's
Global Market listing from NASDAQ's Capital Market listing reflecting
more stringent financial reporting requirements coupled with a broad
international presence. Lingering doubts by some, but not all, analysts in this
country about anything to do with Chinese Communism have restrained out
enthusiasm as well, but those who were freed of biases made out pretty
well on this stock so far, and it appears to have plenty of growth potential
well beyond what it has seen to date, particularly in places like Western
China.
Perhaps nowhere is a changing world more evident that the remaking of Japanese
hatred of Chinese that existed prior to and during World War II. Atrocities committed
by Japanese then were unbelievably horrible in China. Yet, today when we unpack one of Sony's
latest and best-selling flat screen LCD television sets, we note the stamp on the
nameplate, "Made in China." Even the Japanese know where to go first for quality, and
it is not always Japan anymore.
001-11-2010: Telestone Technologies Corp. (TSTC): A Bet on Western Chinese Infrastructure Expansion
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Telestone Technologies Corp. (TSTC ) Sector: Technology
Floor 6 Saiou Plaza No 5 Haiyin Industry: Diversified Communication Ser
Fengtai Technology Park Exchange: Nasdaq
Beijing, China
Telestone Technologies Corporation provides wireless communications
coverage solutions in the People-Ęs Republic of China and
internationally. Its wireless coverage solutions include research
and development, and application of wireless communications
technology. The company also offers various wireless communications
equipment, including repeaters, antennas, and radio frequency
peripherals, as well as provides project design, project management,
installation, maintenance, and other after-sales services. It
supplies solutions to the telecommunications industry, which cover
indoor and outdoor environments comprising hotels, residential
estates, office buildings, airports, exhibition centers, underground
stations, highways, and tunnels. In addition, Telestone Technologies
offers the 3D solution, which utilizes fiber technology in the radio
frequency signal distribution to transmit high speed data signals,
and the PHS system optimization solution to address issues related
to wireless network, including network coverage, network planning,
network capacity, and network disturbance. The company-Ęs TD-SCDMA
repeater is used for application in signal coverage of blind spots,
such as signal blocked areas, tunnels, and temporary meeting rooms.
Its WFDS, the wireless distribution system that combines the
technologies of wireless telecom and fiber telecom, is an
all-optical network, which supports mobile telecom networks and
various other networks, including WLAN, FTTH, telephone networks,
and video surveillance system. The company was founded in 1987 and
is headquartered in Beijing, the People-Ęs Republic of China.
Last Trade: 23.25 52-Week Range: 24.94 - 0.75
Trade Date: 01-09 Avg. Volume: 655,898 Shares
Index Membership: N/A Employees: 0
Corporate Governance:
Telestone Technologies Corp.'s Corporate Governance Quotient (CGQ-«)
as of 3-Jan-10 is better than 57.7% of CGQ Universe companies and
38.6% of Technology Hardware & Equipment companies.
EPS: 1.03 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 241,890K
Payout Ratio: 0.00%
Last Split Factor (new for old): 1:54 Split Date: 26-Aug-04
Key Statistics:
Enterprise Value: $ 240,270K Revenue (ttm) : $ 53,300K
Gross Profit: $ 18,200K
Earnings before Income Tax, Depreciation and Amortization: $ 14,620K
Enterprise Value/Revenue (ttm): 4.51 Revenue per Share: $ 5.12
Enterprise Value/EBITDA (ttm): 16.43 Qtrly Rev Growth (y to y):124.70%
P/E Ratio (fwd projected): 0.00 P/E Ratio (current): 22.66
P/E Growth Ratio (5 yr expected): 0.00 Operating Margin: 26.85%
Price/Sales Ratio: 4.54 Profit Margin: 20.02%
Price/Book Value: 4.04 Book Value: $ 5.76/sh.
Return on Assets: 10.14% Net Income Avl to Common: $ 10,670K
Return on Equity: 19.77% Diluted Earnings/Share: $ 1.03
Qrtly Earnings Growth (yoy): 278.20%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 5,290K Operating Cash Flow:$ -1,700K
Total Debt: $ 3,660K Lvgd Free Cash Flow:$ 13,930K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.51
Current Ratio: 1.97
Share Statistics: Stock Price History:
Shares Outstanding: 10,400K Stk 52-Week Change: 910.87%
Float: 6,300K S&P 500 52-Wk Chng: 28.60%
Sh. Short % of Float: 0.00% 50-Day Moving Avg: 17.38
Short Ratio: 0.90 200-Day Moving Avg: 9.07
% Held by Institutions: 5.20% Beta: 3.17
% Held by Insiders: 40.47%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec-69 Dec-69 Dec-69 Dec-69
Average Earnings Estimate 32.42 19.77 0.61 0.00
Average Revenue Estimate 0M 0M 0M 0M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): 0.000
PEG Ratio (ttm, 5 yr expected): 0.000 P/E Ratio (ttm): 0.344
Revenue Growth (Qrtly YoY): 0.000
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 35,329 33,578 21,708
Cost of Revenue 17,133 16,534 10,691
Gross Profit 18,196 17,044 11,017
Operating Expenses:
Research & Development 527 822 605
Selling, General & Administrative 8,430 8,525 4,591
Non-Recurring Expenses 0 0 0
Other Operating Expenses 295 288 241
Total Operating Expenses 0 0 0
Operating Income or Loss 8,944 7,409 5,580
Income from Continuing Operations:
Total Other Income/Expenses Net 177 727 442
Earnings Before Interest & Taxes 9,121 8,136 6,022
Interest Expense 298 100 55
Income Before Taxes 8,823 8,036 5,967
Income Tax Expense 1,774 1,998 1,353
Minority Interest 0 0 0
Net Income from Continuing Op.s 7,049 6,038 4,614
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 7,049 6,038 4,614
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 7,049 6,038 4,614
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Total Revenue 18,891 12,130 7,896 14,385
Cost of Revenue 9,977 7,123 3,196 6,736
Gross Profit 8,914 5,007 4,700 7,649
Operating Expenses:
Research & Development 138 193 136 66
Selling, General & Adminis. 3,189 2,325 3,024 2,578
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 79 84 90 58
Total Operating Expenses 0 0 0 0
Operating Income or Loss 5,508 2,405 1,450 4,947
Income from Continuing Operations:
Total Other Income/Expenses Net 83 22 267 -738
Earnings Before Int. & Taxes 5,564 2,454 1,717 4,209
Interest Expense 40 89 41 43
Income Before Taxes 5,524 2,365 1,676 4,166
Income Tax Expense 1,308 366 529 857
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 4,243 1,972 1,147 3,309
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 4,243 1,972 1,147 3,309
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 4,243 1,972 1,147 3,309
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 7,866 5,473 3,380
Short Term Investments 0 0 0
Net Receivables 63,962 46,805 31,186
Inventory 7,843 8,023 5,048
Other Current Assets 3,699 2,501 688
Total Current Assets 83,370 62,802 40,302
Long-Term Investments 0 0 0
Property, Plant & Equipt 1,050 1,170 821
Goodwill 3,119 3,119 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 0 0 0
Deferred Long Term Asset Charges 0 0 0
Total Assets 87,539 67,091 41,123
Current Liabilities:
Accounts Payable 31,451 21,894 15,554
Short/Current Long Term Debt 2,918 2,079 1,279
Other Current Liabilities 739 262 20
Total Current Liabilities 35,108 24,235 16,853
Long Term Debt 0 30 0
Other Liabilities 0 0 0
Deferred LT Liability Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 35,108 24,265 16,853
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 11 11 9
Retained Earnings 24,071 17,610 12,152 Treasury Stock 0 0 0
Capital Surplus 18,989 18,989 8,475
Other Stockholder Equity 9,360 6,216 3,634
Total Stockholder Equity 52,431 42,826 24,270
Net Tangible Assets 49,312 39,707 24,270
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Current Assets:
Cash & Cash Equivalents 5,288 3,902 4,636 7,866
Short Term Investments 0 0 0 0
Net Receivables 60,870 72,208 70,006 63,962
Inventory 6,930 10,577 10,313 7,843
Other Current Assets 1,868 5,947 2,811 3,699
Total Current Assets 74,956 92,634 87,766 83,370
Long-Term Investments 18,774 0 0 0
Property, Plant & Equipt 1,162 1,178 1,174 1,050
Goodwill 3,119 3,119 3,119 3,119
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 0 0 0 0
Deferred LT Asset Charges 1,232 908 777 739
Total Assets 98,011 96,931 92,059 87,539
Current Liabilities:
Accounts Payable 33,226 36,690 35,701 31,451
Current Portion LT Debt 3,656 3,652 1,758 2,918
Other Current Liabilities 0 0 0 0
Total Current Liabilities 38,114 41,250 38,236 35,108
Long Term Debt 0 0 0 0
Other Liabilities 0 0 0 0
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 38,114 41,250 38,236 35,108
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 11 11 11 11
Retained Earnings 30,707 26,844 25,027 24,071
Treasury Stock 0 0 0 0
Capital Surplus 18,989 18,989 18,989 18,989
Other Stockholder Equity 10,190 9,837 9,796 9,360
Total Stockholder Equity 59,897 55,681 53,823 52,431
Net Tangible Assets 56,778 52,562 50,704 49,312
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 7,049 1,972 4,614
Operating Activites:
Depreciation 295 260 240
Adjustments to Net Income 1,327 1,568 210
Changes in Accounts Recv'bls -15,566 -9,934 -6,940
Changes in Liabilities 8,676 293 1,511
Changes in Inventories 731 -1,629 -2,686
Changes in Other Op'ing Actv's -1,045 -471 112
Total Cash Flow fr Operations 1,467 -3,875 -2,939
Investing Activities:
Capital Expenditures -169 -270 -148
Investments 0 0 0
Other Cash Flows fr Investing 61 -186 391
Total Cash Flows fr Investing -108 -456 243
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 0 5,454 1,075
Net Borrowings 666 409 1,279
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing 666 5,863 2,354
Effect of Exchange Rate Change 0 561 0
Change in Cash & Cash Equiv.s 2,025 2,093 -342
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Net Income 4,243 1,972 1,147 3,309
Operating Activites:
Depreciation 79 84 90 58
Adjustments to Net Income 880 -24 307 1,005
Changes in Accounts Recv'bls -8,599 -2,159 -6,087 -7,272
Changes in Liabilities -3,142 1,254 4,155 4,373
Changes in Inventories 3,647 -296 -2,438 -150
Changes in Other Oper'g Acts 4,129 -3,202 903 36
Total Cash Flow f Operations 1,237 0 -2,371 0
Investing Activities:
Capital Expenditures 5 -168 -203 -137
Investments 0 0 0 0
Other Cash Flows fr Investing 0 0 0 12
Total Cash Flows fr Investing 5 -168 -203 -125
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 0 0 0 0
Net Borrowings 4 1,906 -1,172 -21
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 4 1,906 0 0
Effect of Exchange Rate Chg 0 -68 68 -42
Change in Cash & Cash Equiv. 1,246 0 -701 0
TSTC Telestone Technologies Corp. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.2357 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: -2.0000 Forward P/E Ratio < 28? 0.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.5066 Inventory/Sales < 5%? 0.2252
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.2793
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.9835 Working Capital >= 1.5? 1.0170
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 1.7358 Inventory Turnover > 1? 2.0346
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 2.6693
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 3.0000 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 2.3476 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.0681
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 2.7685
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.1235
Beta > 1.25? 2.5360 % Held by Institut. < 50? 3.0000
50 Da MA > 200 Da MA? 1.0723 % Held by Institut. > 30? 0.1733
52-Wk Change vs. S&P 500: 1.9068 Short Ratio > 5? 0.1800
Price/Book Value < 3? -0.0400 Short % of Float > 20? 0.0000
Return on Assets > 17%? 0.5965 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: -0.1220 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 0.0000 Price to C.F./sh. Ratio: 1.2403
Cash Flow / Assets >.10? 1.4213
TSTC Telestone Technologies Corp. Overall Zenith Index: 1.3869
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Telestone Technologies:
Symbol? TSTC
Total Months Available: 39
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
2.99 0.75 6.25 2.27 24.94 4.62
RANGE = 24.94 TO 0.75 Close = 23.28
CHANNEL = 4.62 TO 2.99 Degree = 1
Volatility = 7.00% Index = 0
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | - 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | - 1 |
| Intrinsic Value DDM | 0 |
| Stock Scout | - 1 |
| Projected Earnings | 0 |
| Research Reports | 0 |
| Analysts | 0 |
| Executive Perquisites | + 1 |
| Insider Activity | 0 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | 0 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | + 1 |
| Stock Options | - 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 11 |
Place 1,290 shares of Telestone Technologies Inc. (TSTC) on the Active List.
