You can go to the SEC Company News Site (EDGAR) and find postings for CBLY going back to September 24, 2009. Looking at a long-term CBLY stock chart, it started trading on NASDQ on September 1, 2010 at $4.05 and one month later hit its high of $4.40. Weekly volume averaged about 50,000 shares then. Chinese stocks were soon hit by scandal with several companies cooking the books and the US based auditors were hoodwinked. At that time , I owned Longwei Petroleum (LPH now LPIH). I figured such a basic company selling gasoline and Diesel had to be on the level, since it was a simple business. Red Chip Company specializing in small stocks had positive reports on LPH and CBLY . Chinese stocks kept dropping and when CBLY hit $1.00 I started to buy it. I bought it several times on the way down, but never was able to get it at the 10 cent low price. Longwei turned out to be one of the scandal companies and they shared at least two board members with CBLY.
"When the paddy wagon comes, it will take the good girls with the bad" is an old Wall Street saying. Well, that happened to CBLY.
CBLY has 31 Million shares outstanding , most of which are owned by insiders, with the chairman and CEO and Board of Directors owning close to 24 Million shares. Publicly held shares are 6.7 Million.
The SEC has a regulation that allows companies to file a Form 15 if the number of shareholders drops below 300. CBLY filed Form 15 in April , 2013 and became a non-reporting company. Since then, there has been no news from the company for the shareholders.
I have a nice position in CBLY, but without any news most US investors will not touch the stock now. Sometimes I feel like I am the only person buying the stock. That is why I decided to get as much information as possible and report all credible news on a blog or web site. I have been studying The Chinese BAIDU search results and have found a major web site for the "Shanxi Modern Bilingual School". I am looking for a Chinese speaker to get information through the Chinese internet. I am following two American English Teachers Blog, who work or have worked for CBLY. I have hired a Chinese Law Firm and they have engaged an investigator living in Taiyuan to work on my investigation. I have written To Dr. Jun Zhang who is a CBLY board member living in Illinois. And I am looking for a few Chinese citizens to buy some CBLY and then demand corporate reports from the company as shareholders. With 16,300 boarding students in their three campuses, they must have brochures to attract these students and I should have these in the near future.
I found a job opening announcement on the internet for CBLY dated November 2014. Here is a portion of the posting:
"Shanxi Modern Bilingual School is a private boarding school with two campuses including the preliminary, primary, junior and senior sections. One campus , called North School, is for primary school and is located in Taiyuan City and covers an area of 160,000 sq meters with about 4500 students and 800 staff members. The other campus, called South School, for middle school, is located in a southern suburb of Taiyuan covering an area of 200,000 sq meters and there are about 8,300 students and 1,100 staff members.
When you add the old student and staff numbers for CBLY's third school in the neighboring Sichuan Province , it adds up to 16,300 students and a staff of 2600. That is a 18% increase for the student numbers last reported by the company.
Earnings, Book Value and Business Model. Educational Companies are not taxed in China. With no taxes , low salaries and all facilities owned by the educational company, they can show a 50% profit on revenue. CBLY clearly demonstrated a growth orientation when they bought the Shanxi Rising School for $109 Million. This facility has a capacity for 10,000 students . When they bought Shanxi Rising, it had 5869 students. Those numbers have grown to about 8000, an increase of 36% in the last two years.
For their fiscal year ended August 31, 2012 CBLY reported audited earnings of $0.32 (I have found several numbers with .32 being the lowest). At that time they owed about $60 Million and were paying around 8% interest. Today, they have two high rise (18 story) apartment buildings or boarding school resident quarters under construction that I estimate to cost at least 16 Million. I am going to assume they will continue to grow at 20% per year instead of paying off their loans. When CBLY stopped paying their American financial officer, accountants, public relations firm, auditors and legal firm, they reduced their cost by $250,000 or $.08/share. Their CEO, D., Ren Ziqing and his company directors get minimal salaries by US standards. To make a long story short, I believe the actual earnings were $0.40 for 2012, $0.48 for 2013 and $0.58 in 2014. The book value for 2012 was $1.70 and my guess for the book value for the 2014 fiscal year is $2. 76.
One source of current information for CBLY are native English Teachers from the U.S. There are thousands of such jobs in China with 1500 open positions at any time. Since CBLY has a staff of 2600 they must have at least 40 such teachers and I started looking for blogs or reports on the internet and Facebook. I found three bloggers teaching at the Shanxi Modern Bilingual School (SMBS). One such teacher from Illinois has a blog with many photos and descriptions. She has several photos of her school-provided apartment at the SMBS North Campus. She has a photo taken through her window of two 18 story residence buildings under construction just a few hundred feet away.
I estimate that this project will cost $20-$40 Million. Since the company just finished paying for the $110 Million Dollar acquisition of the Modern Rising School, it stands to reason that they are spending money to expand the SMBS North Campus from its present capacity of 4500 students .
This Blogger also describes a vacation trip to Ulaan Bataar, Mongolia to another bilingual school "operated by the same management." CBLY promised fast growth, and that could be one of their new acquisitions. She was visiting other American Teachers that she had met during the initial training in Bejing. Here is the link to Sarah Roberts Blog:
Sara Roberts' Blog