EBT Mobile China plc

Interesting although Cantor Fitzgerald are increasing their holding the price only slides. Who is selling, why and does is it because of the company's fundamentals. It is a difficult one to call. In the last year this company only had revenus of about £17m but is now worth about £40m. Stock was placed at 17p but it is now 26p - a 50% increase. The company was loss making in the last full year of trading so needs to turn that around in a pretty big way to justify its £40m price tag.

As of yet we really have no RNS on financial statements on the group. Only bullish 'trading updates' and Director Appointments. All well and good but what about some numbers and profits otherwise this is just a sentiment stock and as such will be extremely volatile.

Sales may be increasing but it is selling a low-margin product - probably margins of a few percent.

I worry that this could be a China Wonder type story. I.e. associated with China so supposedly unlimited growth. This leads to a massive valuation in relation to sales and given that the business model hasn't been proved in relation to the risks it faces.

In fact we really know nothing much about this stock apart from the fact that they are erecting glass cabinets to flog mobile phones in as many supermarkets as possible. Yes they like to compare themselves to Carphone Warehouse but that looks like a fairly obvious valuation ploy.

IMHO Slap