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CEO reiterates significance of CML investment.....
If DION's share price rises nicely over the next year or two, investors will not be able to look back and say there were no signs/indications/hints of what was to come. The comments from DION's CEO definitely suggest he believes the involvement of CML will eventually have a pretty dramatic impact. I think there is a distinct possibility in the next 1-2 years of seeing some type of merger/acquisition or perhaps some significant licensing deal, joint venture, or alliance with an Asian company.
The commentary sections of the last two press releases......
1) "We consider ourselves quite fortunate to have become associated with CML, for several reasons," Kravitz explains. "First, their financial strength puts a safety net under our Company, an invaluable asset in these difficult times." "Next," he continued, "that same financial strength, combined with their confidence in our technology, will permit us to more aggressively explore new products, new opportunities for growth and even potential strategic acquisitions that may become available, here and abroad." "Finally," he concluded, "their well-established marketing and manufacturing contacts in Asia, and particularly in China, provide us with entree to significantly larger markets for our leading product, PV MOSFET-Drivers." In closing, he then added, "In a year or two, we could look like a very different Company."
2) Moving to "still more upbeat news," Kravitz pointed out the "undeniable importance" of the recent $440,000 investment in Dionics by Central Mega Limited, a British Virgin Islands company. "Their support," he explained, "far outweighs the significance of any short-term quarterly fluctuations, regardless of how severe. Their funding not only puts a safety net under our company, but it also permits us to more aggressively pursue new product enhancements and to even seriously consider strategic merger opportunities." He continued by explaining, "The CML Asian contacts, particularly in China, offer the promise of increased foreign sales for our PV-MOSFET-Drivers as well as prospects for other growth-targeted relationships. It is hard to overstate the future benefits that may eventually stem from this new CML investment," he concluded.
Added a few more shares at 18 cents.......
Picked up some extra shares at .18 this week, just in case something in the upcoming quarterly and/or accompanying press release triggers buying interest.
The CEO usually provides some general commentary (often quite blunt in nature) in the quarterly filings on how things are going for the company. The earnings press releases are usually somewhat brief, but I'm guessing that with the recent financing/control developments the CEO might have a little more to talk about and might be able to "flesh out" future press releases a little bit more.
This was the commentary in the last quarterly filing......
At the time of this writing, early in August of 2009, business continues at a low level, although Management draws some encouragement from a recent slight increase in order activity and promising discussions with customers about projected new orders. Our primary technology thrust remains focused on the large market potential for our optically-isolated photovoltaic (PV) MOSFET-Drivers. We are using this slower period to both enhance our product performance and also to explore a variety of other growth opportunities. Although we are entering the traditionally slow Third Quarter, confidence in the future remains solid. Management reminds the reader that Dionics, Inc. has frequently proven capable, even in the toughest times, of finding yet another “rabbit in the hat.”
Zen...VOIG..possible sign of something coming.....
"VOIG is up 133% today. Potse, have you reviewed the updated fillings to see what all the excitement is about? I'll have to read it tonight....something in there seams to be causing quite the stir today."
I read through the POS AM filing a day or two after it came out on October 28, and there were about 3 things that I found kind of interesting, and perhaps one thing that could be some type of signal/precursor.
1) For the first time, the new address/contact information for the company and CEO appears in filings. I think this kind of helps bring home the fact that changes are (or will be) happening.
2) Sometimes I like to look for subtle wording changes from previous filings. I'm not exactly sure how this particular wording change below should be interpreted (or for that matter whether there is anything of significance behind it), but I did find the addition of the bold part to be somewhat interesting......
The Company recently has formed an alliance with PT. SUMBER DAYA KELOLA (SDK) with which the Company will pursue a geothermal project in Indonesia. The Company is also evaluating the potential acquisition of a gas processing project. A suitable gas plant has been identified and negotiations on its purchase have commenced and have been agreed to, but the Company does not currently have any agreements in place with SDK.
3) On August 20 VOIG amended a small promissary note and issued 1M shares to Capersia Pte. Ltd. The conversion price and possible ultimate dilution might look bad in the void of any significant news/developments, but sometimes when you see changes in financial agreements like this one, it could be a precursor to a possible merger/acquisition.
On or around August 20, 2009, we entered into an amendment to the Note, pursuant to which we agreed to amend the conversion price of the Note to $0.001 per share, and to allow Capersia to convert $1,000 of the amount owed under the Note into 1,000,000 shares of our common stock, which shares have not been issued to date, but which have been included in the number of issued and outstanding shares disclosed throughout this Prospectus. If the remaining approximately $11,764 of principal was converted into shares of the Company’s common stock, such Promissory Note would convert into 11,764,000 shares of common stock, representing approximately 48% of the Company’s then outstanding common stock.
Pretty interesting statement and 2010 guidance.....
1) The Company projects achievement of profitability during fiscal year 2010.
The press release doesn't elaborate on whether profitability will be achieved as a result of product sales, licensing/milestone payments, debt reduction from the 2008 financing agreement (see post below), or some combination of the above, but no matter how it is achieved it will certainly be a positive thing. One of things that has always been attractive about VODG is the ability of management to move the company forward while keeping expenses/dilution relatively contained.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36409124
2) Independent analyses by multiple outside laboratories have confirmed superior performance of Vitro’s stem cell growth medium when compared to existing commercial products. These improvements lead to greater recoveries of useful cells, critical parameters for efficiency and generation of clinically relevant research results by Vitro’s customers.
CEO comments from the press release.....
"We consider ourselves quite fortunate to have become associated with CML, for several reasons," Kravitz explains. "First, their financial strength puts a safety net under our Company, an invaluable asset in these difficult times." "Next," he continued, "that same financial strength, combined with their confidence in our technology, will permit us to more aggressively explore new products, new opportunities for growth and even potential strategic acquisitions that may become available, here and abroad." "Finally," he concluded, "their well-established marketing and manufacturing contacts in Asia, and particularly in China, provide us with entree to significantly larger markets for our leading product, PV MOSFET-Drivers." In closing, he then added, "In a year or two, we could look like a very different Company."
That last comment by the CEO in the press release is precisely why I think DION could turn out to be an extremely nice investment at current prices (5-12.5 cents).
IMO, although the risk may be high, situations like this one certainly have the ability to produce 5-20 bagger types of returns. Everytime I look at DION it somewhat reminds me of DYSL several years back, or to some extent ESEX (which became KEYW and was eventually acquired). Both of those companies had periods when retail investors probably became disenchanted with the prospects of the companies/stocks and a lot of investors probably decided to "give up" on the stocks. But both of those companies underwent transformations via growth/acquisitions and eventually "looked like very different companies". And both stocks produced very nice gains.
That is where I see DION today: at that pivotal point where there are inklings/suggestions of positive and possibly dramatic changes coming and the stock is still pretty much off the radar screens of most investors.
DION has a fully-diluted market cap under $3 million at current prices. With Roy Teng (Managing Director of Brean Murray, Carret & Co) now connected to the company, the prospects for growth/acquisitions/news in the China/Asia theater have probably improved greatly.
Assuming that Alan Gelband continues to hold for awhile the 2.2M share block that he owns, there are currently less than 5M shares out there for any open market purchases if hedge funds or institutional investors start developing an interest in the situation.
http://www.gelband.com/index.html
DION(.125)...future looks brighter.....
The change in control of the company was completed last week. I picked up a few more shares today for trading purposes, as I am anticipating there will be a move into at least the .20s at some point "relatively soon".
I think the longer-term prospects for DION have improved considerably with this share purchase agreement now completed. You have foreign (China) investors taking a liking to and gaining ownership control of a small and struggling company that is underfollowed in the market. This could very well turn into an extremely nice turnaround/growth type of situation as opportunities for business/acquisitions open up for the company. Roy Teng (a Managing Director of investment banker Brean Murray's China office) is now on DION's Board of Directors.
DION CEO's comments in today's press release pretty much lay out the case as to why DION could turn out to be a decent investment......
Dionics, Inc. Reports Major Foreign Investment in the Company; CML Gains 62% Control, Injects $440K of New Capital for Growth
WESTBURY, N.Y., Nov 3, 2009 (GlobeNewswire via COMTEX) -- Dionics, Inc., (DION 0.13, +0.03, +25.00%) a semiconductor / micro-electronics manufacturer best known for its high-reliability PV (photo-voltaic) MOSFET-Drivers, announced receipt of a major foreign investment in the Company. The new investor, Central Mega Limited (CML), a British Virgin Islands company, acquired a controlling 62% interest in Dionics, Inc. by purchasing a total of 13-million shares of its common stock. Of that total, 11-million were newly-issued shares purchased from the Company. An additional 2-million previously-owned shares were purchased from Bernard L. Kravitz, Company president, who also signed a two-year employment contract to continue as president and CEO. All 13-million shares were priced at $.04 each, resulting in an initial $440,000 Working Capital investment in Dionics, Inc. by CML, intended to support both current operations as well as future growth. Details appear in Dionics' SEC Form 8-K's filed on Oct.13 and Nov.3. Brean Murray, Carret & Co. served as exclusive financial advisor to Central Mega Limited in the transaction.
"We consider ourselves quite fortunate to have become associated with CML, for several reasons," Kravitz explains. "First, their financial strength puts a safety net under our Company, an invaluable asset in these difficult times." "Next," he continued, "that same financial strength, combined with their confidence in our technology, will permit us to more aggressively explore new products, new opportunities for growth and even potential strategic acquisitions that may become available, here and abroad." "Finally," he concluded, "their well-established marketing and manufacturing contacts in Asia, and particularly in China, provide us with entree to significantly larger markets for our leading product, PV MOSFET-Drivers." In closing, he then added, "In a year or two, we could look like a very different Company."
http://www.marketwatch.com/story/dionics-inc-reports-major-foreign-investment-in-the-company-cml-gains-62-control-injects-440k-of-new-capital-for-growth-2009-11-03?newsid=974726218&dist=bigchartssymb%3DDION&sid=1616
Picked up some trading shares......
Bought some more shares to go along with the "core position" I accumulated earlier, while waiting for updates on the share purchase agreement. This 5-10 cent level continues to look attractive to me given the current situation.
While it is probably much safer/prudent to wait until more information is revealed regarding the identity of the investor and the future plans for the company, I would prefer to have a position already built while DION still remains in relative obscurity. Low-float stocks like this one can have explosive potential.
tika1_sharma...AEPW position.....
I still have my entire position, as I am expecting to see a 3-bagger type of move in the stock.
With the stock trading at less than the cash in the bank, slight indications that the company might become a little bit more active on investor relations, and that interesting statement in the last quarterly filing regarding the expected introduction of new products in the fourth quarter, I think the upside potential at the current price is much better than the downside risk.
AEPW has managed to report slight-to-mild profits on the bottom line in 5 of the last 6 fiscal years. The only "bad" year was 2007 when the company had one-time expenses related to stock options. Back out that expense and AEPW would have made about $1M that year. I am expecting that AEPW will be profitable again this year.
Any significantly positive changes to AEPW's business operations (for example, some alliance or joint venture or large contract signings), or the company signing up an IR firm could produce a pretty good move in the stock beyond what I am anticipating.
steeledge...LHSI 2:7 reverse split.....
I saw that earlier today while going through the filings. I'm not entirely sure about this, and I'm not sure if my explanation is going to make any sense, but here goes....
I have this growing belief that the company/consultant followed normal procedure and filed for a reverse split on the state level first (amending the Nevada articles of incorporation), decided they don't need to wait until FINRA/Nasdaq reverse splits the trading common stock, and might not realize that when the trading common stock does eventually undergo a reverse split all of the current outstanding shares will undergo a split and not just the 4.3M shell shares.
Since the filings definitely state that the merger has been completed and LHSI has issued the 7M shares to the China company, any reverse split at this point will effect both the original shell shares and the new 7M China shares. Which would completely defeat the purpose of the split.
db7...LHSI...
"Potse, my only thought is wouldn't/shouldn't they have caught on to this by now? especially beforing making everything official? i bought a pretty large position so i hope things don't go sour here"
I only have a small position purchased at $1.50, so I don't have a sizable amount of money at stake here. Because of some things I have been seeing (and anticipating) in the shell markets, I have been trying to focus much of my new buying into certain shell and special opportunity types of situations.
I don't know whether the company/consultant are aware of the problem here or what the eventual resolution might be. I would think that whoever assembled/wrote the last quarterly filing would have noticed that there is an inconsistency between the 4.3M shares claimed at the beginning of the report and the 8.2M claimed within the main body of text.
I just looked over everything again to see if I missed anything earlier today, but I came to the same conclusion. I suppose there is always the possibility that something of significance was left out of the filing (for example, undisclosed cancellation of some of the shell shares).
I remember when CNDH (media/tourism) went public the company, consultants, and financing partners left out of the merger filings a pretty important piece of information regarding dilution. It made a huge negative difference in just how attractive the stock was, but retail investors were the last to find out.
db7...LHSI share structure.....
"Potse, this makes it seem to me like everything is kosher?-->......In exchange, we issued to Asia-Pharm 7,000,000 shares, or approximately 65.25% of our common stock."
I'm about 99.9% certain that LHSI and the consultant on this deal have somewhat of a mess on their hands at the moment. At the very least the company is going to need to do some clarification of the situation. It wouldn't surprise me if LHSI needs to do a number of amended filings and/or perhaps make changes/adjustments to the merger agreement.
Regarding that "7M shares representing 65.25% of our stock" statement.....
1) I'm pretty sure that the 10.7M shares (7M/.6525 = 10.7M)indicated in that statement is the number of total shares outstanding if all the warrants (2.5M) are exercised. Note this statement in one of the 8-k filings (page 41).....
Assuming the exercise of the Warrants, as of September 30, 2009, we have 10,728,571 shares of common stock outstanding.
http://knobias.10kwizard.com/filing.php?param=&ipage=6546869&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
2) Subtract the 2.5M warrants from that 10.7M number and you get 8.2M shares outstanding. That number matches the number you can derive from the press releases, and it also matches the number that can be found in the main text bodies of the various filings.
3) 8.2M post merger shares minus the 7M shares issued to the China company gives you 1.2M shell shares. So just prior to issuing those 7M shares to the China company we know there are only 1.2M shell shares outstanding. And this is where we run into a problem. As I mentioned in my previous post, it is very clear that after the cancellation of the 5M shares from the CEO there are 4.3M shell shares outstanding. Since there are no references of any kind in the filings regarding any further/additional cancellation of those shell shares prior to the merger, the only other way to get those 4.3M shares down to the 1.2M level is via a 2:7 reverse split. From the 8-k filing (page 41).....
Pursuant to the share exchange agreement of September 30, 2009, Eric Anderson transfer red 5,000,000 shares of common stock of Lid Hair Studios to Lid Hair Studios in exchange for 100% of the issued and outstanding shares of Lid Hair Studios’ wholly-owned subsidiary, Belford Enterprises B.C. Ltd., d/b/a Lid Hair Studio. Lid Hair Studios cancelled the shares of common stock received from Eric Anderson prior to affecting the reverse stock split which reduce the amount of common stock then issued and outstanding. Eric Anderson and Lid Hair Studios entered into a binding agreement with respect to such transaction on September 30, 2009.
http://knobias.10kwizard.com/filing.php?param=&ipage=6546869&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
So it certainly appears to me that the only way that the 8.2M share count can be accurate, as agreed upon by both the press releases and the main body text of the filings, is if LHSI's 4.3M shell shares underwent a 2:7 reverse split prior to the 7M shares being issued to the China company. And as far as I have been able to determine, that reverse split never occurred. The numbers don't seem to work any other way.
LHSI...possible problem with this merger.....
I'm not 100% certain about this, but after extensively reviewing the last few filings by LHSI it is my belief that the company and/or consultant have made an extremely serious mistake on this merger.
As far as I have been able to figure out, I believe that LHSI's common stock was supposed to have undergone a 2:7 reverse split prior to the issuance of shares to the Chinese merger candidate. Unless I am completely mistaken, that reverse split never occurred.
According to both the press releases and the filings, there are supposed to be roughly 8.2M shares outstanding after the closing of the merger, which according to the filings occurred at the end of September. But after looking at the merger agreement closer, the only way that 8.2M number can be achieved is if a 2:7 reverse split occurred prior to the shares being issued to the Chinese company. Here are the 3 steps this merger was supposed to have taken.....
1) The shell had 9.3M shares. The CEO sold 5M, which were then cancelled. That left the shell with 4.3M shares.
2) Those 4.3M shares undergo a 2:7 reverse split. That leaves the shell with 1.2M shares.
3) The Chinese company is issued 7M new shares to complete the merger. That leaves a grand total of 8.2M shares post merger.
Notice what appears at the beginning of the 10Q filed on October 15. If the merger closed at the end of September, then the outstanding share count two weeks later should be 8.2M and not the 4.3M that the company reports....
The number of shares outstanding of the registrant's Class A common stock as of October 12, 2009 was 4,300,000.
joenatural...AEPW.....
"AEPW soaring today and I can't figure out why. I've been on the bid at .041 for weeks now with only 850 shares filled. LOL."
Other than the reasons cited in the post below, one of the reasons I picked up a position in AEPW awhile back was my belief that the company may be interested in increasing its public relations activity.
Earlier this year the company changed its CFO and Secretary. Shortly after filing an 8-k in May to disclose this information, I noticed that the Chinese website started undergoing some minor updating. Now, about a week or so ago the company issues its first press release in more than a year. So my hunch is that AEPW might be planning to be a little more active on the PR side of the business.
At 5-6 cents AEPW is basically selling for less than the cash on its books. While I don't expect to see spectactular quarter-over-quarter comparisons like those prevalent in the more upper tier types of China stocks, I do think there is a good possibility of AEPW posting profits in the second half of 2009. I base this on the expected revenue improvements, and if I recall correctly I think the company booked all of its management salaries in the first half of the year which should make it easier for AEPW to post profits in the third and fourth quarters.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40778091
DION(.07)...finished accumulating position.....
Finished building a position in DION over the last week at prices in the 5-7 cent area. This tiny semiconductor designer/manufacturer has managed to basically claw its way back from very difficult periods a number of times over the years. DION is making an effort to come back from the brink once again, catching up with 6 years of missed filings, and as indicated in filings and press releases the company is exploring some "external growth opportunities".
One of those external opportunities (or perhaps a precursor to one) may in fact be occurring very shortly with an outside investor expected to acquire 62+% of the company. If everything remains on track, the proposed stock purchase agreement is scheduled to close no later than October 30 (10 days from now).
There isn't a great deal of detail regarding the identity of the investor and exactly what is going to transpire with DION once the deal is completed and additions to DION's Board of Directors occur, but my guess is that this transaction will represent a significantly positive moment in the the company's history.
As a result of the struggles DION has experienced over the years, the stock is pretty much off the radar screens of most investors. Any positive developments here could lead to some pretty nice upside on the stock, IMO.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42609497
DION...stock purchase agreement.....
Picked up some shares of DION in the 5-6.5 cent range. I believe the potential action described in the 10/13/2009 8-k will likely represent an important turning point in the company's history, and could be a precursor to some nice developments (both from a business and stock price perspective).
The stock purchase agreement outlined in the 8-k filing on Tuesday has an outside party purchasing a total of 13 million shares (11M newly issued, and 2M from the CEO's personal holdings) at .04/shr. This will give the investor a 62+% ownership position in DION. Fully-diluted share count following the transaction will be about 21M. If the CEO converts some debt into shares at .09 in the next year, there would be about 23.5M fully-diluted.
One of the more interesting things in this filing was the identity of one of the law firms (Anslow & Jaclin) and an investment banker (Brean Murray, Carret & Co) that had involvement in this transaction. Both of these firms have a history of working with China/Asia corporations and individuals.
I think the involvement of these two entities coupled with the fact that the investor is going through a British Virgin Islands corporation opens up some intriguing possibilities of what might eventually take place here. My hunch is that this purchase agreement could signal that some foreign company (most likely located in China/Asia) has some type of potential business interest in DION's products/technologies, or perhaps this is a precusor to an eventual merger/acquisition with a foreign entity.
Stock purchase agreement.....
http://knobias.10kwizard.com/filing.php?param=&ipage=6551573&DSEQ=3&SEQ=&SQDESC=SECTION_EXHIBIT&exp=
LHSI(1.50)...china pediatric pharma.....
1) Based on the RM press release, LHSI appears to be very much interested in uplisting to a higher exchange.....
http://ih.advfn.com/p.php?pid=nmona&cb=1255370245&article=39835481&symbol=NB%5ELHSI
2) Interesting to note that the sole compensation for the consultant and investor relations firm on this recent reverse merger comes in the form of warrants exercisable at a significant premium to the current share price ($3 and $5).
3) I've read through the warrant agreements several times, and unless I've completely overlooked something, there appears to be no cashless exercise option on those warrants.
So the consultant/IR on LHSI appear to be fairly confident in seeing much higher prices on this stock. IMO, buying some shares at a 50% discount to those warrant prices should be good for at least a double/triple.
SBAT...picked up some more shares.....
Added some more shares of this shell at 23 cents. All things considered (share structure, valuation, ownership, risk/reward, etc.) SBAT continues to be among the most attractive shells in the market, IMO.
As I mentioned in the above post, as long as the Viking/SBAT agreement remains in place in which Viking absorbs all of SBAT's expenses until a change in ownership control, there is a decent chance at making nice money on this shell around this 20-30 cent area.
If RHGP steps up to the plate and does well in the coming weeks/months (as I am anticipating), that is something that could draw some additional attention to the SBAT shell.
RHGP...NT 10-Q filed...
RHGP filed a NT 10-Q yesterday for the period ended July 31 2009 (third quarter report). This filing somewhat confirms in my mind that RHGP is intent on catching up with its filings and probably interested in seeking an uplisting.
Although managment didn't provide any narrative, it might be worth noting that the "yes" box was checked. If the 3Q and/or 9-month results show positive changes, I think the share price could move nicely higher......
Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
|X| Yes |_| No
http://knobias.10kwizard.com/filing.php?param=&ipage=6514140&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
steeledge...RHGP...Allied Merit.....
"I'm a little perplexed why they sought financing last month when they appear to have plenty of cash. That's always a yellow flag for me."
I believe prior to the global economic meltdown RHGP had been considering raising somewhere around $20 million for business expansion/acquisition purposes. It's possible that this financing with Allied Merit International could be an attempt by RHGP to "dip" its toe into the financing waters, as perhaps a precursor to a larger influx of institutional money.
Or perhaps this is merely part of RHGP's plan of regaining fully-reporting status and/or uplisting to one of the major exchanges. Allied Merit provides a number of financial services for its clients (direct placements, merger/acquisition advice, listing services, etc.). So with Allied owning a chunk of shares, Allied has a pretty good financial incentive to assist (either formally or informally) in improving RHGP's status.
Part of the reason why my interest in RHGP has increased is that Allied Merit's investment here probably means.....
a) RHGP's business has most likely fared pretty well subsequent to October 2008, and the prospects look encouraging, and.....
b) you are going to see RHGP eventually trading on the Amex or Nasdaq at some point.
Off the top of my head two of the China stocks that I recall Allied owned very early in their public Bulletin Board existence were SHZ (mining) and CSKI (pharm/biotech). I also think Allied had some type of financial advisory role with ADY (dairy) prior to its move to a major exchange.
I think the overall improved investor climate for China stocks may encourage financial advisory firms or China companies themselves to "resurrect" some stocks that have fallen behind on their filings. I think a prime example would be TNPH. I thought that pharma had some extremely nice potential, and unless there is something completely amiss with the business I could see that company/stock doing quite well in this current China stock environment.
LONGBEACHBOY...GVBP/KHGT relationship.....
"Is KHGT.PK what Genova bought out?"
The intellectual property that GVBP currently owns was previously the property of NextGen Bioscience (NXGB, now trading as KHGT). For various reasons NXGB's attempt to develop a pharm/biotech business (identical to GVBP's business plan) failed. Some of the reasons for this failure were out of control of the company, but most of them were self-inflicted.
NXGB was probably the most puzzling/frustrating investment I have ever made. Opportunities to develop a viable development-stage pharma/biotech were pretty much squandered by questionable decision-making from the get-go. I have followed GVBP since the pharma IP was purchased earlier this year. To a large extent GVBP is basically duplicating the same mistakes that eventually led to the downfall of NXGB (for example, the needless forward split before the company has raised any financing).
Despite the collapse in share price, I have maintained my position in KHGT (Kalahari Greentech, formerly NXGB). A pretty large, well-known, well-respected European institutional investor held a significant ownership position in NXGB at the time its pharma business model was implemented. The relative lack of volume that NXGB experienced makes me believe that investor still has a large position. Ironically, I am kind of guessing that whoever is now pulling the strings at KHGT (contact was changed to a China address) will probably do a forward split at some point. Perhaps that coupled with some promotion will allow for a decent tradeable move in the stock.....
http://www.kalaharigreentech.com/default.asp
RHGP($1.10)...pink sheet pharma/biotech.....
"Viking is best-known for bringing China pharma RHGP public."
Speaking of RHGP: IMO, the risk/reward on RHGP has just improved with the company filing its annual report today for the year ended October 2008. I think the possibility exists for some pretty sharp/explosive moves in the share price, if this particular filing is an indication of positive events to come.
Disclosed in the subsequent events section of the 10-K was this piece of information.....
On May 15, 2009, there is an agreement between Renhuang and Allied Merit International Investments, Inc. and Griffin Ventures Ltd (the “Investors”). The Investors agreed to pay Renhuang $ 1.5 million in exchange for an aggregate of 2,142,856 shares of the Company’s Common Stock and 1,071,428 Warrants with an exercise price of $0.875. The Company issued 2,142,856 shares on May 20, 2009 and received the $1.5 million on August 7, 2009.
This investment of money into RHGP suggests to me that there is a decent chance that the company will catch up on its SEC filings and probably upgrade to the bulletin board.
Using a fully-diluted share count of a little over 38M (includes the warrants mentioned above), RHGP's 2008 earnings came in at about .30 cents/shr. Book value was above .90/shr.
CCMS...attractive shell.....
As of June 30, 2009:
4.7M outstanding shares
2M float
$560K market cap at .12/shr
$190K book value: .04/shr
Picked up some shares of CCMS in the 8-12 cent area. The shell is pretty much off the radar screens of most shell investors/players. Share structure, valuation, cash position of about $200k, make CCMS a reasonably attractive shell.
Although there is no updated information in the last two quarterly reports regarding management's search for a merger candidate, there was this rather interesting piece of information included in the "subsequent events" section of the annual report filed on 4/15/2009......
Management has identified potential businesses to merge with and is in negotiation with the parties. Such negotiations are subject to due diligence , the completion of the annual 10-K filing with the Securities and Exchange Commission, as well as completion of all federal , state and local tax filings and resolution of any and all outstanding liabilities should there be any. There is no assurance that we will be successful in completing these negotiations.
http://knobias.10kwizard.com/filing.php?param=&ipage=6267990&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
SBAT...speculative no-brainer shell.....
1M shares outstanding
367K float
$200K market cap
Security ownership per the last annual report (filed 4/15/2009).....
Viking Investments Group LLC 632K 63.5%
Cede & Co. 342K 34.4%
Picked up a position in the SBAT shell at 25-30 cents. The share structure, valuation, tight ownership, etc., are all extremely attractive and, in my opinion, place SBAT solidly into the "speculative no-brainer" category.
Viking Investments Group purchased the SBAT shell about one year ago at 95 cents per share (this includes some assumed debt which they have already converted into equity). So current retail investors can buy SBAT at a pretty large discount to what Viking paid.
Also worth noting: Viking has been paying out-of-pocket all of SBAT's expenses (audit fees, filings, etc). As long as Viking continues to do this, and there is no unexpectedly negative pre-merger/acquisition dilution, there is a fairly good chance for the average retail investor to make some decent money on this shell at some point.
Viking is best-known for bringing China pharma RHGP public. Since the firm concentrates on Asia/India, and they changed the name of the shell to SinoCubate last year, there would seem to be a pretty good chance that the SBAT shell would be used for some type of China-related merger/acquisition or new business plan/development.
http://www.sinocubate.com/
SBAT...speculative no-brainer shell.....
1M shares outstanding
367K float
$200K market cap
Security ownership per the last annual report (filed 4/15/2009).....
Viking Investments Group LLC 632K 63.5%
Cede & Co. 342K 34.4%
Picked up a position in the SBAT shell at 25-30 cents. The share structure, valuation, tight ownership, etc., are all extremely attractive and, in my opinion, place SBAT solidly into the "speculative no-brainer" category.
Viking Investments Group purchased the SBAT shell about one year ago at 95 cents per share (this includes some assumed debt which they have already converted into equity). So current retail investors can buy SBAT at a pretty large discount to what Viking paid.
Also worth noting: Viking has been paying out-of-pocket all of SBAT's expenses (audit fees, filings, etc). As long as Viking continues to do this, and there are no unexpectedly negative pre-merger/acquisition dilution, there is a fairly good chance for the average retail investor to make some decent money on this shell at some point.
Viking is best-known for bringing China pharma RHGP public. Since the firm concentrates on Asia/India, and they changed the name of the shell to SinoCubate last year, there would seem to be a pretty good chance that the SBAT shell would be used for some type of China-related merger/acquisition or new business plan/development.
http://www.sinocubate.com/
AEPW (.06)...electrical power systems......
52M shrs outstanding
$3.1M market cap
$3M cash
$11.9M Book Value: .23/shr
2009 revenues expected to be $18.7M (based on 2Q guidance)
Picked up some shares of AEPW as a speculative play. AEPW designs and manufactures systems to monitor/control electrical energy (switchgears, circuit breakers, etc.).
Some of the lower-quality types of China stocks often get neglected as money pours into the upper-tier names, but that can provide some opportunities. Eventually, some of the more speculative stocks out there can have their moments in the sun and produce nice percentage gains (SNPY and CHFR are two examples that have moved nicely off their 52-week lows).
AEPW does have a $1.5 million floor-less convertible note with an existing minority shareholder. However, the note can not be converted until the maturity date of December 31, 2010. Gross margins are slim so I don't see AEPW becoming wildly profitable any time soon, but there are some encouraging indications regarding anticipated revenue. Guidance in the 2Q report calls for $12M in the next 6 months, which would compare favorably to the $6.7M in the first 6 months of 2009.
An item of interest from the 10-K filed on 4/15/2009......
We endeavor to enhance our product line by improving exiting products and/or introducing new products to the marketplace. We have developed and are currently testing a gas insulated switchgear to be used in the power distribution system of power plants and sub-stations, as well as an enhancement to an existing switchgear which would afford applicability to other markets, such as power plants. We expect to introduce both products during the fourth quarter of 2009. These new products will allow us to enter new markets and attract new customers.
AEPW websites.....
http://www.greghetrick.com/AEP2/about.asp (from around the time the company went public)
http://www.aepe.biz/cn/
RichieBoy....SUIP management......
"Fascinating speculation, but the stinging reality is management have accomplished nothing for investors since this shell was spun off. IF this is to move management is not likely to show much indication, that's there nature."
The fact that SUIP management has not yet filled this shell with a merger candidate or successfully implemented a new business plan is not something I hold against the management team. By their very nature, most shells are basically in similiar situations and have lengthy periods of time where it appears as if nothing is happening (and seemingly no hope of anything ever happening). And the last year or two have been particularly difficult for shell management teams as a result of the market downturn and credit crunch.
SUIP looks interesting to me at this point in time for a couple of reasons.....
1) Many reverse merger firms have been indicating over the last few months that they are seeing a significant increase in Chinese/foreign companies inquiring about reverse mergers in the United States. I believe this could eventually lead to an improved market for reverse mergers and perhaps lead to periods of renewed speculation in the shell market.
2) I was actually somewhat impressed by an action SUIP took last year to restore shareholder value to the shell after SUIP management basically got blindsided by the events that transpired surrounding SJEL (the company that it purchased a $500K convertible note from). That $500K came from the $3 million that the CEO and his associates invested in SUIP in early 2008.
I don't have the time/energy to go back through SJEL's filings but from what I recall just a few months after SUIP purchased that note a large international financial institution unexpectedly pulled some loan or line of credit from SJEL. This created an extremely serious financial situation for SJEL almost overnight, and it potentially could have resulted in SUIP shareholders losing that $500K.
SUIP's management did something you rarely see. The CEO basically took personal responsibility for that situation. The CEO took ownership of that note, and then completely restored SUIP to its original shell condition prior to their $3 million investment. Unless SJEL has recovered financially from that incident, it is entirely possible that SUIP's CEO may have taken a personal $500K hit. And thanks to his efforts to insulate other shareholders, SUIP shareholders managed to emerge from this unscathed.
While this doesn't guarantee that future actions by SUIP's managment team will lead to an eventually profitable investment, it does suggest to me that they are trying to do the right thing.
Disappointing business plan......
I was pretty disappointed with the new business plan of acquiring income-producing properties in Michigan. It's probably unlikely to generate a great deal of investor enthusiasm, and certainly isn't what I had hoped to see when EIG and Jan Telander gained control of the shell. I was looking for something a bit more exciting from the get-go. Most likely this significantly decreases the upside on the stock.
When I first saw that DPRI was changing its name to ProGreen Properties, I thought maybe the business plan would involve real estate or other assets that had strong ties to EIG Venture Capital's interest in clean/efficient energy. But unless the business plan drastically changes or broadens out, it doesn't appear there will be any major connection.
I will grant them this, though: The Telander family does have a great deal of knowledge/experience in the area of real estate over the past few decades (primarily in Europe/Spain), including the founding of a large construction company and consultation/advising on large real estate deals.
OT: mystiq...VOIG...shells in general.....
"Any news on VOIG? Down quite a bit since you took a 9% holding in it. I did it too but losing at this time. Are you still in it?"
I only purchased about 5% of the VOIG shell (575K at .0167/shr cost basis). Continue to hold all my shares, with an expectation that I will eventually get about 10-30 cents per share on that position.
Generally speaking, whenever I buy shares in a shell I basically assume that at some point I will probably have a paper loss of at least 50-75%. Adopting that philosophy (accepting the inherent volatility of shells) makes investing in shell situations a whole lot easier to stomach.
I don't have any updated info on VOIG, but remain quite optimistic on the potential for the stock based on the info that has been disclosed in filings this year: a new CEO with a background in Indonesia energy, prospective geothermal acquisition targets have been identified, the number of preferred shares available for financing/acquisition has been increased which suggests to me that VOIG is pretty serious about making some kind of significant acquisition/alliance.
As a shell investor about all I can do is try to identify shells/situations that look potentially intriguing from an overall fundamental or speculative perspective, place some money at risk and see how things develop.
Finished accumulating shares.....
More than doubled my position in DPRI over the last 5 days at .05 (overall cost basis now at .0406). My attempts to pick up some shares at .04 during this time were unsuccessful, but there did seem to be a willing seller at .05 so I decided to snap up some of those shares quickly. My guess/expectation is that I will be able to get a minimum of a 3-bagger on those 5-cent shares sometime during the next few months.
DPRI is at a pretty interesting point in its corporate history, and like most companies emerging from shell status things could develop along either a positive or negative pathway. There are enough intriguing things about this particular situation that I prefer to have a position already built before any additional information is revealed in filings or press releases.
Zen lunatic420.....DPRI dilution......
"I would think they would want to raise capital at higher rates to control dillution, but since EIG is the financer....I can't help but think that this dillution is just to water down the current shareholders equity.....and provide a little bit of capital to get things rolling....with whatever ProGreen Properties, Inc. intends to do with their properties."
My hunch is that the purpose of the three tranches has less to do with infusing some capital into the business and more to do with increasing/maintaining EIG's ownership percentage of the business (watering down the current shareholders equity).
Shell owners usually keep around 3-10% of the new business in a typical reverse merger transaction. Based on the language in the recent filings, DPRI is no longer a shell and now has an operating business via the merger with the ProGreen Properties subsidiary. It is kind of interesting to run the numbers on DPRI on a fully-diluted basis (treat the three EIG investment tranches as if they all had been completed as of today), and then calculate the percentage the non-EIG shareholders keep......
a) 112 million shares fully-diluted
b) 5.4 shares owned by non-EIG shareholders
c) 4.8% of the new business owned by non-EIG shareholders, which is a number that falls quite nicely within the typical reverse merger parameters.
Obviously without knowing any details regarding the company's business plans/direction, there is considerable risk in maintaining an investment in DPRI, but that is basically the nature of shell investing. I decided to pick up some shares at 5 cents for trading purposes when I noticed that statement in Thursday's NT 10-K.....
The Company was a shell corporation from April 30, 2009 until July 28, 2009 when it closed on its first acquisition of real estate.
That verbiage/wording is rather interesting, IMO. Unless DPRI has issued shares in some type of real estate transaction that hasn't been disclosed as of yet via a filing, then it would appear to me that this acquisition of real estate occurred when DPRI and its subsidiary ProGreen Properties merged. Further, this opens up the intriguing possibility that EIG Capital and Jan Telander may be basically transfering some assets into DPRI, since other than the tranches it doesn't appear that DPRI bore any noticeable expense in acquiring ProGreen and the real estate. But that is all just a hunch on my part, and would require some confirmation/clarification.
Last week CEO Jan Telander registered the new website (still under construction as of this writing)......
http://www.progreenproperties.com/
DPRI...new name and business direction.....
Picked up some more shares of DPRI at .05 the last couple of days. As disclosed in filings this week, DPRI will be changing names (ProGreen Properties) and the venture capital group that controls the shell will apparently be implementing a new business direction that involves the acquisition of real estate.
Current share count should be roughly 19.4 million (includes the completed first tranche of investment by EIG Venture Capital at slightly more than one cent per share).
The upcoming annual report should provide a bit more information/clarification on the subsidiary that DPRI merged with, but I find the following statement in yesterday's NT 10-K to be somewhat interesting.......
The Company was a shell corporation from April 30, 2009 until July 28, 2009 when it closed on its first acquisition of real estate. As a result of this change, the auditors need additional time to complete their required subsequent event procedures.
http://knobias.10kwizard.com/filing.php?param=&ipage=6438825&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
SUIP...accumulated a position.....
Accumulated a pretty good-sized position in the SUIP shell over the last few months (purchased shares in the 1-3.5 cent range, currently averaged in around 2.8 cents).
1) 6.3 million shares outstanding
2) $220K market cap at the current .035 ask
3) Insiders directly own only about 10% of the stock (obviously I would prefer to see a higher number there), but CEO Xuguang Sun has voting control of the company via non-convertible preferred stock. That preferred stock is owned by the CEO's mainland China company: Sunrise Lighting Holdings Limited (Tian Xing Lighting & Electrical Co.), which is a 14-year old company involved in lighting/electronic equipment, employees apparently number in the 500-1000 area, and the existing or new factory that was built apparently can accomodate 2000 employees.
http://www.ttnet.net/show_html.jsp/profile/SS/infohtm/Y/oday//cono/10124589/type1/A
In March the CEO purchased a subsidiary from SUIP, which I view as "housekeeping" in advance of a potential reverse merger. The fact that SUIP disposed of this particular subsidiary makes me believe that management is leaning more towards completing a full-scale type of reverse merger rather than injecting cash into the shell and making a partial investment/loan similiar to what they did last year (but that is just a hunch on my part). From the last quarterly report.....
Management is currently looking for more capital to complete our corporate objectives. In addition, we may engage in joint activities with other companies. Sunrise cannot predict the extent to which its liquidity and capital resources will be diminished prior to the consummation of a business acquisition or whether its capital will be further depleted by its operating losses. Sunrise has some discussions concerning potential business cooperation or combination with other companies but no final agreement has been reached yet.
Zen lunatic420...difficult to accumulate.....
"That's been me on the 0.031 for the past couple of months. I've been sitting on this bid for about two months now....and have only gotten about 12k filled. These shares seam to be held real tight. If/when something is announced here, this thing could spring up by multiples with a few buys."
This stock does seem to be held much more tightly than a person might expect. When I first started looking at DPRI last year, I figured with the uncertainty surrounding the change in control and after basically years of lackluster stock performance there would be some retail investors willing to let go of some sizable blocks. But it didn't take too long after I started to buy that I realized accumulating a position in DPRI might be a little more difficult than I anticipated.
I think all of my buy orders were placed at the then ask price(s) of 2-3 cents, and outside of a 63k block I pretty much had to settle for blocks under 10k.
With the usual caveats (unexpectedly high/negative pre-merger dilution, badly structured or incredibly boring merger/acquisition, etc., etc.), my gut feeling is that buys around this price area have a decent chance of seeing some pretty nice gains. Personally, I think minimum prices in the .20s are doable.
Currently accumulating (or perhaps I should say "trying to accumulate") some more shells that look particularly attractive. The economic downturn has definitely had an impact on the shell market and companies willing to go public, but my hunch is that taking a "contrarian" viewpoint and picking up some shells at this time might pay off nicely down the road.
There are a couple that look like "speculative no-brainers" to me (extremely attractive share structures, valuation, interesting ownership, basically no significant following/buzz from IHUB members, etc.) and I figure if I keep buying some of these "value" shells eventually a few of them will produce some major gains. Will probably post about them on their respective boards if I get the positions I want.
budge...REPR's advertising.....
"why repr has run the ad for as long as they have is beyond me. time will tell what the result is.
I have no problems/concerns about REPR's long advertising campaign for assembly positions because I consider it a positive sign of decent/improving business conditions for the company. Historically, these types of ad placements by REPR have produced increases in the employee numbers and ultimately has led to increasing/accelerating revenue and profits.
The last time that I recall REPR advertising for at least two consecutive months was during fiscal 2008, which resulted in a 40% expansion of the company's manufacturing workforce. And this was followed by a 70% expansion of manufacturing employees in fiscal 2009.
With the possibility of REPR bringing the new needle set to market this summer, and my belief that the company hired a national sales manager in the third or fourth quarter, I find the timing of the 3-month advertising campaign for assemblers to be a little bit intriguing.
Assembler ad....3 consecutive months.....
This is now 3 consecutive months that REPR has placed an advertisement for assembler positions.....
Growing Company Needs Help
Assembler
RMS Medical Products is an innovative company needing to fill key assembly, positions. We are a leading manufacturer of medical products that are designed to save or improve the quality of life.Our modern facility is located in (Chester NY) a small town in the Hudson Valley. We offer flexable hours and a great working environment, which is based on openess, trust and mutual accountability. If you would like to be considered for a team member position, apply in person or fax your resume. No prior assembly experience necessary but good dexterity skills are required.
Company Name: REPRO-MED SYSTEMS INC.
Location: Chester
Available: Immediately. Full Time. 1st and 2nd shifts.
Posted: 6/25/09
http://regionalhelpwanted.com/search/detail.cfm?SN=1&ID=21444675
VOIG...finished accumulating a position.....
Finished accumulating a position in the VOIG shell today. Over the last 3 days I have been able to pick up close to 5% of the outstanding shares at a cost basis under .017/shr.
The shell valuation around these price levels is pretty attractive, and it is quite possible that the selling of the gifted shares has provided a buying opportunity that in retrospect will prove to be extremely profitable. Depending on how any merger/acquisition/alliance is structured, the upside on VOIG could be considerable.
The geothermal industry in Indonesia has been attracting pretty significant levels of investment. The timing of the new CEO appointment, and any further near-term corporate developments regarding Indonesian geothermal business activities, could get a little interesting given there is a very large geothermal conference being held in Indonesia next month.
Indonesia Geothermal Energy World Conference (July 22-23, 2009).....
http://www.abf-asia.com/project/1985SC_EM.pdf
VOIG...shell, Indonesia energy play......
Accumulated quite a few shares of the VOIG shell over the last couple of days in the .014-.02 range. On shells the supply of shares can dry up unexpectedly, so once I identify an interesting situation I generally like to establish a good-sized position fairly quickly if the seller cooperates.
There was a CEO change earlier this month and the company has stated plans to focus on geothermal energy in Indonesia. Significant amounts of money/attention have been flowing into the geothermal industry in that part of the world.
Under 12 million shares outstanding currently. I am assuming that some accrued consultant liabilities (owed to the previous CEO) will probably get converted into shares at some point, so I figure the fully-diluted share count should be under 20 million (and perhaps much less than that number).
A former CEO (and current Director) owns 120,000 warrants, but they are all exercisable in the .25-.50 range.
The Series B Preferred Stock that was created earlier this year in anticipation of potential financings/acquisitions has a $2.50 price and is convertible into 30 shares (8.3 cents per share). According to the recent 8-k filing, the company is amending the designation of the Series B Preferred so the $2.50 price will not be subject to any recapitalizations. So, it would appear that if VOIG wishes to use Preferred stock in any upcoming financing/acquisition it will be done at the equivalent of a 8.3 cent common share price. Whether that price would be at a premium/discount to VOIG's current share price will depend on whether VOIG does a reverse split (and the size of the split).
All things considered, the risk/reward on VOIG around this 1-3 cent area looks pretty intriguing, IMO.
VLOV...domestic China apparel.....
This company is involved in the V-LOV brand of apparel in China. Went public about 4 months ago via a reverse merger with the SNOH shell. I played the reverse split round-up feature on the shell since it was basically a no-brainer type of situation (end result: 100 shares with a cost basis of 23 cents per share).
I guessing/anticipating that at some point VLOV will probably begin some type of investor relations program to increase exposure of the company. Pope Investments, Ancora Greater China Fund, and Matthew Hayden (Hayden Communications International) owned about 90% of the shell at the time of the reverse merger.
16 million shares outstanding
$40 million market cap at last $2.50 trade
2008: $52 million rev, $9 million net, .56/shr
1Q 2009: $18 million rev, $3.7 million net, .23/shr
VLOV website.....
http://www.jinduren.cn/main.asp
CGWY(.01 x .035)..potential China-related shell.....
Picked up a few more shares to add to a very small, high-risk, speculative position I have in the CGWY shell (cost basis in the sub-penny level). Under 19 million shares outstanding.
Currently trading on the pink sheets as a result of missing the last two filings (2008 annual report and 2009 first quarter report). I don't know what management's intentions are regarding its future filing status, but I figure it might be worth throwing some speculative money at this one given the increased interest in China stocks, the possibility that CGWY might be looking at a China-related reverse merger, and the identity of the CEO.
When CGWY became a shell last year, Martin Key (an ARC China Vice President) took over the CEO duties and changed the name of the company to China Gateway Corporation.
Key's bio.....
http://www.arcinvestmentpartners.com/en/seniorprofessionals.html
Ongoing interactions with major pharmas......
From today's 10Q filing.....
However, additional expansion of the product line and aggressive marketing both require additional capital and management is activity seeking additional investment into the Company. Furthermore, management has various ongoing interactions with major pharmaceutical companies who continue to express interest in the Company’s products and technology. Either through contractual sales of products or other forms of strategic alliance, such discussions may lead to additional capitalization of the Company.
http://knobias.10kwizard.com/filing.php?param=&ipage=6375337&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=
A reminder of what was disclosed in the previous quarterly filing......
However, additional expansion of the product line and aggressive marketing both require additional capital and management is activity seeking additional investment into the Company. Furthermore, management has been invited to present at a partnering forum organized by a major pharmaceutical company who is known to partner with and acquire biotechnology firms. Such discussions may lead to additional capitalization of the Company.
http://knobias.10kwizard.com/filing.php?param=&ipage=6216520&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=