Via financialskeptic.blogspot.com/:
Xinhua Finance Media(XFML) issued a very breezy press release announcing the acquisition of a 70% interest in Small World Television ("Small World"). The transaction closed August 23. XFMedia made a cash payment of US$ 5 million and will issue 546,248 Class A common shares within five days from closing date (equivalent to 273,124 American Depository Shares).
The problem I have is that absolutely no financial information has been provided. Will earnings be accretive and if so when? Any cost cutting opportunities? Nothing an investor can really sink their teeth into.
The press release gushes about the transaction and how it will strengthen and enhance everything. Its almost like extra vitamins in my cereal. Its sort of good but really how much better is my life going to be.
Small World started in 2004 and they now sell out or jump ship for $5 million. Not exactly the big score. Did they need more capital? Was there some kind of problem. If the earnings will not be seriously accretive than why bother. In this case the faux joy that all are expressing is just a little bit overdone and one becomes suspicious.
For those of you who may not know Xinhua Finance Media is a partially owned subsidiary of Xinhua Finance Limited ("XFL"; TSE Mothers: 9399; OTC ADRs: XHFNY). They bill themselves as China's premier financial information and media company.
These guys are more than capable of providing substantive financial information. Its supposed to be a core competency. The omission which was clearly intended has too much smoke screen in it. Investors will find it hard to come to grips with .
$6.49 (08/27/07)
