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Hi guys,

I am bought shares of CGA since 2010 and I have been following the threads - till now. So I guessed I am part of this group who are still 'holding on'.

I believed that CGA still deserves its spot as an attractive investment despite the brutal shorts over the past 2 years exacerbated by the reports on false accounting and the law suits.

As far as I have read, the law suits were dismissed and we have not heard of any fresh 'shorts' reports till date. If any of these were to have an impact on CGA, they should have done so by now. I also think CGA should have emerged more robust in their accounting practices.

As it stands now (from Yahoo Finance).

PE is a mere 2.14
Cash per share is $2.62 (share price as of 28 Sep is 3.33) - about 2/3 is cash.

Enterprise value is $33.75M while market cap is 91.43

Looking plainly at these metrics, CGA seems to be really attractive.

I am planning to lock in for more. But I have just one query which I am quite concerned and I must say I am a novice in accounts.

I notice that CGA Total Debt/Equity ratio is 5.90 which is rather high ($5 of debt for every $1 of equity). I am trying to reconcile this metric:

Where does the debt come from? And for what purpose? Will CGA be able to repay?

Any light on this matter will be greatly appreciated.

Regards
Baby88fool
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