Empire Building 101
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This is in addition to the 387 acrea owned by the company. I've never saw this before so maybe cactus is not a problem as many have speculated. This filing also talks about the probabilty of using the tax losses in U.S. The filing is long but actually had some tidbits of things I did not know.
The Company leased 1,487 mu (approximately 245 acres) land for growing cactus from third parties under operating leases on April 1, 2008. The lease payment is RMB 14,871 (approximately $2,180) per annum from April 1, 2008 to March 31, 2018 and RMB 23,794 (approximately $3,500) from April 1, 2018 to March 31, 2038.
Are these newe patent applications? Found in 424 in last filing.
UNABLE TO PROTECT OR ENFORCE OUR INTELLECTUAL PROPERTY RIGHTS, OUR COMPETITIVE POSITION COULD BE HARMED AND WE COULD BE REQUIRED TO INCUR SIGNIFICANT EXPENSES TO ENFORCE OUR RIGHTS.
We depend on our ability to protect our proprietary technology. We rely on trade secrets, patent, and trademark laws and confidentiality agreements with employees and third parties, all of which offer only limited protection. We hold 18 PRC patents relating to our products. The terms of these patents will begin to expire in 2022, at which time we could become more vulnerable to increased competition. In addition, we have applied for 12 new PRC patents. We do not know whether any of our pending patent applications will result in the issuance of patents or whether the examination process will require us to narrow our claims, and even if patents are issued, they may be contested, circumvented or invalidated. Protecting against the unauthorized use of our products, trademarks and other proprietary rights is expensive, difficult and, in some cases, impossible. Litigation may be necessary in the future to enforce or defend our intellectual property rights or to determine the validity and scope of the proprietary rights of others. This litigation could result in substantial costs and diversion of management resources, either of which could harm our business.
Steve I believe with the purchase of the existing factory they already have plans to distribute product in Asia immediately. After that the roll=out into Europe. Remember they did have not only existing product lines but contacts and I believe a distribution network intact. US may take longer but I feel it is only paperwork othrwise how could they give samples to the public (us shareholders) if the FDA was going to be involved. I think we are going to do great and still feel a buyout or spinoff is inevitible.
FDA was never mentioned. She did say they were actively in the process of getting cigs into the states. I thought it was a matter of filing paperwork....forgot all about the FDA and never asked. Guess I should have kept better notes.
My understanding the process has already started. This is something Amy told me months ago.
Wonder what ckgt is up to??? Once again read the bottom line. I believe it is happening in Mexico but not sure as I've been told the expansion includes the US for cigs. Any comments?
Liquidity and Capital Resources
We had cash and cash equivalents of approximately $2,279,956 and $2,918,068, as of June 30, 2010 and December 31, 2009. Our funds are kept in financial institutions located in China, which do not provide insurance for amounts on deposit. Moreover, we are subject to the regulations of the PRC which restrict the transfer of cash from China, except under certain specific circumstances. Accordingly, such funds may not be readily available to us to satisfy obligations which have been incurred outside the PRC.
My expectation is for a nice pop on JADA as they don't face the share increase and the higher taxes that ckgt currently faces. Also JADA had a very nice q1 & q2 on a y/y basis. If that holds up on q3 we could see a nice pop. Jade prices are up significantly but don't know if that is the same type JADA produces. JADE' SP is up significantly with great results and have hopes of JADA doing the same when they report next Friday.
As far as CKGT nothing has changed IMO. However, a little nervous with all the selling. It;s as if their has been a leak on bad earnings possibly or dilution in some type. I've pointed out many times that I don't feel this management would ever do that but who knows. Afterall, they have grandiose expansion plans with Asia first. It appears we will not get the 30% net income growth this year as most expected on a EPS basis. Hpwever, next year could be a different story as I believe we will see close to a buck.
Hope you guys made a bundle on CCME. Very smart bunch over their on CGS board. AS they migrate out of CCME it would be nice for them to funnel some of that to CKGT.OB & JADA.OB
Never took it that way. I'm way over-weighted in ckgt.ob and have not participated in this rally in a meaningful way. CKGT will have its day just like all the chinese microcaps unless management does something absurdly stupid which I hardly doubt. In the meantine the proceeds from the 10k I sold was used to double up on JADA. JADA has had a wonderful q1 & q2 on a Y/Y basis and does not have the higher shares and higher taxes that ckgt faces this Q. Could be a real quick double. Surely you see the plan in all this madness(LOL)! Wwith a little luck who knows maybe I can buy back 20K.
Sold 10K today. Pretty well fed up although I still believe it is severely undervalued...just to many things moving. Bought some more JADA
Once again I agree it is getting very old with no answers yet from Brian. Spending money on this IR firm was the biggest mistake this year. Atleast Amy answered questions. These morons think they are the reason for the $1.30 spike a few weeks ago. If that were the case why in the hell are we struggling to hold $1.20
If they need money to expand why in the hell don't they start doing some dog & pony shows. No that would be stupid when we get get some penny p&d firm for $5-10K a month...and to think they get free shares just makes me wanna puke!
Excellent post!
This was my thought as far as smokes. I think they're going to be absolutely huge. Sales will go absolutely beserk next year and yet the SP does nothing. IMO, they could do the $1.0+ next year that Pappy talked about. What are your thoughts on 2011 now that we have an idea what cigs will do? Anybody here ever remember BTI?
Revenues are going to explode next year?
With this type of growth in cigs how long before "they" notice?
Will "they" do anything about it?
Who is "they"?
The COMPETITION
Traderfan here is something that we agree on. While I don't believe they will be any less than last years Q3 obviously somebody thinks different. Afterall they probably have been sinking alot of money into the cig plant. The question is whether they amortise the costs or direct cost for the Q. Regardless I just think we have a great future.
SIAF.PK is ckgt.ob 3 years ago. Once the subsidies go away their margins will be MUCH lower. The fact that they have found new markets and products which looks to overcome any potential shortfall of the government subsidies which in this case was lower taxes. I expect the 30%+ growth in earnings per share to continue in 2011 only at a much higher rate as Pappys' dream products get launched.
As far as bad earnings I don't see it. As I have stated on more than one occasion they will be basically flat on PPS basis but sequentually higher on total net income. Guess I'm done ranting and raving as in two weeks we will all know.
As far as the new IR firm I still believe they were the back-up plan if cash was/is needed. They know nothing and will continue in that capacity.
Fraud? This is becoming a nightmare. Everything I own except cnoa has passed up ckgt.ob What is the problem?"--10/25 post #2263
I was being facitious...opps.
I find ckgt.ob a much better value than siaf.pk as ckgt.ob is now totally weaned off government subsidies while siaf.pk is highly dependent. Remember in q4 09 was the launch of cigs and within 2 years they are going to be 20% of sales which is no small feat and margins appear fantastic and much better than the high 30's management was expecting. Not to mention that the cig manufacturing plant is operational 2 months early with full production within 4 months. Todays news is no less than awesome. Remember ccme less than 5 weeks ago was around $7-8 with the same retort as here with rather large volume at the time.
Next you have the geographical expansion into Asia by CKGT.OB while SIAF.PK is only within China. Along with the demonstrated results in q2 surely gives some credibility on the purchase of patents(feed up 300%+). To say their is no transparency it just not true. I too,was misinformed on the patents but they did a very ligitmate job of explaining this in the 10k.
Here is q4 09 cig results:
Patented New Product: Cactus Cigarettes
•? Sales $317K in ’09, launched in Q4 2009 ?
•? Profit margin - 64% in ’09?
•? Registered trademark - “Sheng Cao” brand
•? Made from cactus, honeysuckle, ginkgo biloba leaves, (small amount of tobacco leaves)
•? Two products: (i) low nicotine (ii) zero nicotine
•? (i) low nicotine: lower the tar and nicotine content by 70% (ii) zero nicotine: eliminates nicotine
•? Offers taste and enjoyment like regular cigarettes
Market
•? China accounts for 30% of global smokers
- 390 Millions Chinese are smokers
•? Survey from 14,000 Chinese smokers shows
47% accept cactus cigarette
•? Smoking becomes a fad in China, esp. for young people
and females
•? Government promotes health-preserving cigarettes
- still in innovation stage
Not a problem but just look at this post. Todays news was exceptional considering they are 2 months ahead of schedule. Also told how much production would be done in-house on a percentage basis.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55399408
Although I am alittle skeptical of the continued shares available at these bargaain prices.
Trader you really should sell and move on. Obviously you don't like the company yet profess to own it and recently added shares.
If you are married it is no different than telling your wife/husband how much you love them and then go to work and bitch about her/him. If you don't like her/him MOVE on.
Many companies do not give guidance period. Again if they are not transparent enough for you why are you holding shares and adding? They have never been a PR machine and probably never will.
Read D's post again. This is how you make money. As far as SIAF.PK IMO the most you can expect to make is 100% in 12-24 months while ckgt.ob is much more. I bought lots of SIAF around .75 and sold at $1.50+ and bought more ckgt under $1.10
Good Luck and hopefully you make a bundle.
While you make very logical comments you really have to assume a few things. For example while sales are growing strong at 30%+ net income will be flat because of the increase in taxes and share count. They were not included in last years figures. Along with that we will not see an increase in taxes and shares mimimal for 11.
20% of sales next year will be cigs! They already said in a slideshow margins would be high 30's. If they continue the same 30%+ growth next year(remember management already gave a $35Mil estimate for this year) that would put sales over $45 Mil and 20% would be closing in on $10 MIl. If you remember also my original estimate for cigs was $4-5 Mil this year and $10 MIl plus.
IMO, they are a flat out buy at this price even though you were sure it was going to .75 Your very good at pointing out your predictions when they are right but not so when your off base.
I would rather see no NI guidance than many that are just wrong. IMO, ckgt.ob is much more transparent than you and many have led on. They have made it very clear the direction they have chosen to expand in regards to product and expansion.
While they may be cheaper on a PE the difference is minisule at best. I like ckgt.ob much better particularly due to the fact they are growing at a consistent rate and the demograhics and the middle class is growing at a rate of 40mil per year. This is a lot of buying power and should continue for years to come. This is very good news and thus in my opinion a much more predictible future because of the business they are in. They also have the ability to grow outside of China while many do not have this ability.
I was unable to add much unlike you snow, but have the same thoughts as you. I do expect N.I. up 30%+ but believe earnings will be up marginally on a PPS basis because of the increase in shares and taxes.
Regardless of how earnings are reported the fact remains that dilution if needed will suck but responsible.
WE are all ranting and raving about cigs and pigs while the beverage group has quietly grew sales for the last 4 years at 50%.
Unlike many other Chinese microcaps ckgt.ob has not made the same lidution mistakes as many have.
Many are very concerned about a cactus shortage. IMO, this will not happen as I believe with their close relations with the Mexicans we will see a new supply of cactus. Again, remember they have contacts in Mexico and Mexico is a thriving climate for growing cactus. Also don't forget about cigs in the States along with hog feed in the States.
I still believe we have a tiger by the tale surpassing SIAF.PK and many other CGS picks.
Good Luck with your recent buying snow, I believe you will be well rewarded very soon.
I believe revenues will be huge this Q up to the tune of 50% and continue this explosive growth for quite some time.
Amy from Hawk Associates made it very clear that ckgt.ob has the right to refuse. Here is an earliar post regarding Kodiak and a few thoughts and DD.
StevenRisk Share Tuesday, September 28, 2010 9:27:38 PM
Re: None Post # of 2285
My thoughts to the Kodiak deal and more news may be flawed as they have until 11/27/10 to deliver the put notice. They report q3 results by Nov. 15 and the results are good, the stock rallies, and at that point do the put notice. It had been posted that they had until the middle of Oct. which was untrue. Always substantiate anything you hear or read on a m.b.
The fact remains they have a "right to walk away" if the stock price isn't what they believe it is worth(I agree). Remember they walked from the Seaside deal.
Item 1.02 Termination of a Material Definitive Agreement.
On April 30, 2010, China Kangtai Cactus bio-Tech, Inc. (the "Company") entered into a termination agreement (the "Termination Agreement") with Seaside 88, LP ("Seaside") pursuant to which the parties agreed to mutually terminate the Common Stock Purchase Agreement, dated November 5, 2009, between the Company and Seaside 88, LP (the "Purchase Agreement") with no further obligations. The parties agreed to enter into the Termination Agreement because the Company believes the financing terms as contemplated by the Purchase Agreement is not in the best interest of the Company at the current time.
Apr 30, 2010 2.30 2.35 2.30 2.35 21,900 2.35
They certainly will walk here also. They walked at $2.35 they sure as heck arn't going to let this put option go at $1.0
The following is directly from 8K.
"Pursuant to the Investment Agreement, the price per share will be determined once the Company submits a written notice (the “Put Notice”) to the Investor stating the dollar amount in U.S. dollars the Company intends to sell to the Investor and will be based on the following formula: eighty three percent (83%) of the volume-weighted average price of the Company’s common stock five (5) days immediately preceding the date of the Put Notice and five (5) days immediately following the date of the Put Notice. Under the Investment Agreement, the Company may not deliver the Put Notice until after the resale of the Shares has been registered with the Securities and Exchange Commission. Additionally, provided that the Investment Agreement does not terminate earlier, the Company has a three (3) month period, beginning on the trading day immediately following the effectiveness of the registration statement, during which it may deliver the Put Notice to the Investor (the “Open Period”)."
Now look at the new firm. Right off the web-site.
Let Equititrend initiate, structure and execute your next fundraising transaction. Equititrend specializes in:.
PIPE Financing
Distressed Company Financing
Convertible Debt Financing
Merger and Acquisition Financing
Mezzanine and short-term Bridge Financing
Early Stage Venture Capital
Asset-based Debt and Credit Instruments
Regulation D, Rule 504 and Rule 506 Private Placements
Reg. D, 144 Capital
IMO, if they don't get their price this Kodiak deal is dead. These guys want top dollar for any dilution and are unwilling to take any less. They will probably do $10 Mil cash flow for the year. Obviously, this management is a lot smarter than many give credit.
I doubt you will get anything from these guys as they appear 2nd rate at best. Different stories and no follow-up.
Still would be nice to see somebody do what they say their going to do. IMO, ckgt.ob wasted money and would be much better off to hire somebody for their own I.R. that speaks english.
I don't believe these guys are telling all! IMO, much more is going on and they have every intention of cashing in. As I've stated in an earliar post, they may very well do the next financing if the present put option isn't excersized and that is probably the only reason they hired this firm.
P & D is an expectation on my part. They will do a mailing with full intent of exposing out little gem to a new set of eyes.
Brian told me distinctly they he would be going the end of Oct. and obviously something has changed.
I also asked about their fees and was told he did not know. This is material and should be disclosed simply by asking. I do not believe they will be rewarded with a ton of free trading shares and no more than 5k per month.
As far as the old PR firm Amy told me they though they were no longer working for them, she thought it was an excellent company and the future was very bright and things would get much better as management brought them to the next level.
Steve, when you get the e-mail tonite(sounds like the pump will be starting very soon) please post it if you could. If you choose not to would you atleast give the board some type of an update on the contents. I really don't expect any news that we don't know as it would be material.
What I expect on the update from company is updates of cigs. pappys new product and possibly uplisting news which should happen by Q1.
We are going to rock very soon! As far as the selling many are just getting impatient.
This management is NOT going to give shares away freely. They needed money 6 months ago and cancelled the deal. Do they still need the funds? I really don't think so. I believe this firm was hired to get the price up and nothing more. They are ready for an uplisting but lack pps and more shareholders. Let's go NASDAQ not AMEX.
When I talked to Mike he said they were going to visit China and personally visit their facilities. Today stockmOn said he talked to Jose wo said they had no intentions of visiting. Today I called and left a message. I've many unanswered questions that they would be contacting me as soon as they recieved the answers. My understanding was they have conference calls twice weekly one being on Tuesday and the other Friday.
Again Mike said they would be in China the end of this month. AS soon as I receive an answer will post to the many questions I had.
Fraud? This is becoming a nightmare. Everything I own except cnoa has passed up ckgt.ob What is the problem?
I may be buying a few more Thursday but obviously concerned that we can't get any traction. I believe this is one of the very few that has not moved. Also wonder who is selling and the reason. Anybody here selling?
So much for the rally.
Volume is the highest today since Aug. earnings report. It has been steady selling all day with very nice blocks going thru today. Looks like IMO, the next leg up is coming very soon. Still very puzzling that somebody is selling unless mm's are trading shares back and forth trying to steal your shares.
Excellent volume again today. Unfortunately the stock is down. Hardly doubt it is a leak as company is very tight-lipped. Looks like volume is definately going to see 100k today. Regardless of the stock price it certainly is good to see the renewed interest. GLTA!
Excellent volume again today. Unfortunately the stock is down. Hardly doubt it is a leak as company is very tight-lipped. Looks like volume is definately going to see 100k today. regardless of the stock price it certainly is good to see the renewed interest. GLTA!
Good volume last week. It looks like our space is coming back in a very strong way. We could/should get $1.50+ this week as this space heats up looking for stocks that have not moved much.
Now let's hear something from the new I.R. firm. The timing couldn't be better.
I'll bite: you pay an IR firm 60k a year because you know you have a fantastic story, you know your cactus cigarettes are a big seller, you know you'll meet or exceed analysts' expectations and it's worth it to get the story out there.
It could be worth the money providing they get the story out. I guess what is different is they have been hired solely for investor awareness. In the past. I never had a clue why they hired the last firms. It would have been a savings since all they ever did was PR SEC filings nad transfer messaes or questions from shareholders to company. Really not worth the money spent.
It is somewhat scary but certainly exciting with this volume to see what the next day brings. Personally, I've been expecting a write-up from the new PR before they visit the company the end of this month. I believe tt will be very positive as the volume indicates their friends are getting in before the P&D.
Comgradulations on CCME as that train has definately left the station.
Now get ready for blast-off here. Maybe I'm wtong here and we don't get a P&D write-up but earth shattering news. Today would be a good day(LOL)!
Nice write-up. Don't know if this has been copied and pasted.
Thursday,October 14, 2010
Atomic Penny StocksSubscribe FreeContact UsDisclaimerAtomic Blog
http://www.atomicpennystocks.com/index.php/529
I like the volume yesterday and once again today. This is before the P & D by the new firm which may not be out until after they visit the facility at the end of this month.
We shall see very soon why management decided made the decision to also manufactor their own cig. Remember they have a 5 year contract for the outsourcer plus this new facility. They obviously have a plan....sure which they would share it with the shareholders(LOL)!
Who is doing all the selling? Maybe they know something that we don't. Volume has been up and the stock has not. This is not good with the Chinese stocks going up.
StockmOn yout thoughts on q3 earnings and revenue projections would be appreciated.
Trader you are very corrrect that they could come in at 11 Mil which would still be over 40% growth. They did 34% last Q without the 3,000 stores. That is a lot of stores and surely should benefit the bottom line. There could be added expense to get the store distibution in place but the pieces certainly are coming together.
I hope your are wrong in your assumption that cigs are not taking off like their is no tommorrow. I still think the company is very astute at running a business and would never spend $5 Mil when they already had an outsourcing contract in place. We could also see added expenses for getting the plant running...actually I would expect that.
As far as blowing away q3 estimates it certainly is a possibility but nothing that I would bet on. With a PE of less than 3 for this year I hardly see much downside but then again I thought the same at $2 per share.
I think things are going very good and the expectations are very high. Why else would you cancel the Seaside deal as they did. The quote came out something like this.."we do not feel this deal is in the best interest of shareholders as we feel the stock is undervalue" Remember the price was $2.32 on April 30 when this happened. Obviously things are going very well.
I've paid a tad more in the last week from $1.07-1.10
I'm in so deep my eyes are now brown(LOL)!
However, as Bob Brinker used to talk about the promised land(financial security) this is exactly what the doctor ordered.
Took some off the table with siaf.pk and told Brian from EquiTrend they need to carbon copy everything siaf.pk did. Equitrend is having a conference call tommorrow with ckgt.ob in the afternoon and are going to pose some questions to the company.
Much better conversation today with Brian as he called me back even though we did talk last Friday. Maybe they got the shareholder list(LOL)!
Fernando, what are your expectations here on sales/ net income?
I know I come off very optimistic but they really are in the catbird seat especially with a healthy cig, healthy drinks, and healthy animal feed growing and very little debt.
Cash flow is better when measuring financial health and ckgt is very healthy.
Good luck on more $1.00 shares.
You are right about running a public company.
My expectation only differs from your slightly negative to my slightly positive.
When I orginally had high expectations I totally missed the 10% tax increse. This was a huge miss on my part as this would have went directly to the bottomline. Not to mention more shares, and amortization charges. Then you had a rotten q1 margins miss from raw materials which they have all but discontinued. My expectation is they will do 40% margins in cigs vrs below 10 on the discontinued line. Clearly understand that margins will increase q3 unless sales go through the roof on feed wich is 17%. However. If that happens we will have a blowout q3 as alcohol and beverages continue their double digit increase.
My most optimistic sales forcast is $13.5+ Mil which is doable. It is also an expectation for a huge impact from the 3,000 stores. However, I've ratched it down to $12.5 MIl.
My conceern pertains to all the flooding they have had recently??
The volume is picking up very nicely with some good accumulation with decent sized blocks.
Finally an admitted seller.
Anybody buying?
I'd have to disagree Trader! They do a wonderful job of running and growing a business. They just do NOT understand that they must do this by becoming more transparent and shareholder friendly.
Imo, earnings for Q3 will be flat to marginable improvement. They did increase shares by 15%+ from conversions and warrrants and a 10% increase in taxes.
My understanding they do not want to dilute but not sure if this is after the Kodoak deal. I'm thinking now that earnings are not going to rock the stock this Q
Who knows maybe Q4?
This is getting very old here. This is the only stock that has not really moved at all. I thought for sure we would be getting some type of update. Maybe I will sell and then it will go up!