Financial Status of Shane McMahon's Company - China Broadband, Inc.

China Broadband, Inc. starts 2011 with an increasing share price. Just like the sudden increase in the last days ofCBBD.jpg December, there is no specific reason for the positive development on the market during this week.

Throughout 2010, rapid increases and decreases of the share price were very common for CBI. Yet, they benefited only short-term speculative investors as the stock price has eventually decreased from $0.20 per share in the beginning of the year to $0.075 at present.

Another interesting fact is the number of traded shares, especially during yesterday`s session as it was higher than 3 million. This is more than 15 times above the average volume for 2010, excluding only two occassions in the previous year when more shares where traded in a single day.

It is also important to mention that China Broadband was involved in a series of mergers and acquisitions on the Chinese market, and it is through them that the company actually operates there. Several changes in the management were also made, yet, it is in 2011 to be seen whether the right choices have been made.

Chine Broadband`s business of providing television and internet services in the most populated country in the world is actually one of true potential. But, as in any booming industry, not everyone is a winner.

While recent movements in the stock price bring positive notions for the near future, a closer look at the financial side of the business reveals a much less optimistic picture. Now, according to the last 10-Q report, last year the company had total assets worth a little more than $10.5 million and liabilities of $9.6 million. But more important is the total net loss for 2010 of $11.2 million, or twice more than in 2009. Having in mind that the company intends to continue financing its operations through debt and stock sales, it is unlikely that the recent movement of the share price would last long this time. In the past, it did not.

source: www.hotstocked.com