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Author: Collinsmeister Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 53  
Subject: Re: Hmmmmmm Date: 2/21/2009 10:59 AM
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Matt and Jim,

I read that Yahoo post as well. So are you guys buying more now that its dropped to $3.55 a share? When I read the thread yesterday it ended with a guy, hdoe1000, who seemed pretty knowledgable. His comments would incline me to buy more if I had money. For instance, he says, which is his #4 note, that:

"Following the 10K, the Citadel Notes are due 2012. There is no provision to call them early. This whole Citadel story sounds not very credible."

As you know, though, the original writeup that made up the first part of the thread, that is, the one pasted from Robert Hsu's newsletter, cautioned against adding more now because he thought the company would have to offer more shares soon and hence dilute the overall pool. Yet the new public announcement about the deal CSR forged with the Industrial and Commercial Bank of China (ICBC) wherein they pay CSR the total cost of the job as soon as it's fully installed and inspected, strongly suggests that their cash flow problem should be well on it's way to being solved. And this in turn implies there may not be a need for dilution. The article also states that:

"We believe this initiative can significantly improve our cash flows, reduce our accounts receivable, and lower our working capital requirements. Further, this factoring service is a model we intend to replicate for other Safe City projects and is one that further enhances our competitive advantages in winning additional large Safe City projects throughout China."

http://finance.yahoo.com/news/China-Security-amp-prnews-1437...

So, again, this suggests we should, if we can, be buying at these new lows. What do you guys think?

Thanks,

Steve
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