China Medicine Corporation (CHME)

[Blitzkrieg9]

I may add here too! I like it at $4.20, so i like it even more at 3-half.

I'm not concerned about the numbers. CHME has gone thru rapid expansion and revenues are up. Cash looks good, but the earning are way down because of the accounting loss associated with the warrants.

The only question mark /red flag i have is with OEP's warrants and terms of the deal. I will have to do some serious DD, but basically there are provisions that reward OEP tremendously if CHME doesn't achieve certain revenue /earning goals. Or something like that.

In turn, the shares could be vastly diluted. I don't recall all the details, so take all this with a grain of salt. If anyone else can shed more light on this i would appreciate it. Regardless, i'll have to devote a good 10 hours to comb thru all the docs and uncover the truth.

But, barring the possible dilution, i think the numbers look fine.

Blitz!