This report, dated on Oct 2010, analyses AutoChina International (AUTC.NASDAQ). We uncover issues about the impact of the latest action that AutoChina International undertook to remove its earn-out provision. We conduct analysis and take a perspective on the following key issues:
• AutoChina’s Annual earnout to CEO Mr. Li Yong Hui.
• AutoChina’s cash flow and net income.
• Other issues regarding Auto China…
• Our conclusion on the stock: whether to buy, hold or sell.
Anyone who has an interest in USA listed China stocks needs to buy this report now and see the value our research gives you (and your bottom line).
Company Description:
AutoChina International Limited, through its subsidiary, AutoChina Group Inc., owns and operates a commercial vehicle financing and service centres network in the People's Republic of China. It involves in leasing commercial vehicles; and providing after-sales support, road-side assistance, and value-added services. The company offers a lease-to-own program that comprises after-sales and support services for Class 8 heavy trucks; and a standard lease program, which includes various services consisting of licensing and permit, insurance, registration, and support services. In addition, it provides optional value-added services, such as financing for tire and diesel fuel purchases. (Source: Yahoo Finance!)
Sector: Financial
Industry: Diversified Investments
TOC
Section I – Main issue
The business model
Section II – Other issues
Negative operating cash flow
Ongoing share dilution
Continuous financing needs
Section III – Conclusion
Appendix I – Cash flow statement of AutoChina
Appendix II – Earnout program