This Chinese SaaS/IaaS has been busy securing new Saas focused contracts from financial firms that CEO Wang Weidong hopes will:
“allow us to show a full year result similar to last year and, more importantly, leave us well placed for profits growth and cash generation in the following years”
So no sign significant increases in earnings even though improved sales contracts have been secured.
At least not for this year.
It looks as though current shareholders will have a very long wait to see a return.
20th December 2013 was the last time Geong made any public statements and one would like to think that they are too busy to make announcements because they are securing more of those juicy SaaS contracts with banks.
The real reason Geong is on my radar is because it is selling at a price to tangible book of 0.08 and a debt to equity of 0.15.
But at 93x earnings it’s still tad on the expensive side and therefore I’d like to see much clearer guidance from management as to earnings before making an investment decision.
At this stage aiming for a ‘similar result as last year’ is simply not enough.