Red chip became IR for LPIH before Crane entered the picture. Do you know if it was red chip who introduced Crane to LPIH?

Doesn't Crane also get a $300,000 salary from LPIH AND 100,000 free shares per year and that is only a part-time gig for him. Sad part is that LPIH people in China probably have no idea of how many investors on this side of the ocean view Crane's performance.

I agree with you on JADA and also picked up some good sized chunks in the 34-38c range.

I'm thinking many IHubbers see the value with BFAR but are waiting on the sidelines for the trend to turn. Problem is we won't know for sure that the trend has turned until we can see it in the rear view mirror. For that reason, I have been scaling into BFAR as it drops. How low will it go? I don't know, but I'm thinking that Q4 results may well get the ball rolling in the right direction. That quarter is seasonally the strongest quarter for Chinese pharmas, and I also expect strong #s here. That will be out at month's end unless BFAR files for an extension.

BFAR was trading at $4 a few months ago and today trades at less than 25% of that despite strong #s in the interim. Makes no sense to me and reminds me of LPIH which was beaten down to 30c range from $2 a year ago. Everyone wondered how many shares the seller still had left when all of a sudden it took off. I did great with LPIH and I can see BFAR turning out the same way. Time will tell.

BFAR - You're right, the filing does say that Sherb, the auditor resigned. However it also says that there were no disagreements with the auditor and a new auditor was hired the same day, so it seems it was a mutual agreement.



4. In connection with the audit of the consolidated financial statements of CNPH as at and for the years ended December 31, 2008 and 2007 and through the date of this Current Report: (i) there were no disagreements between the Company and Sherb & Co., LLP on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Sherb & Co., LLP, would have caused Sherb & Co., LLP to make reference to the subject matter of the disagreement in its report on the Company's financial statements for such year or during the interim period through the date of this Report, and (ii) there were no reportable events within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K.


5. The Company has provided Sherb & Co., LLP a copy of the disclosures in this Form 8-K and has requested that Sherb & Co., LLP furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not Sherb & Co., LLP agrees with the Company's statements in this Item 4.01(a). A copy of the letter furnished by Sherb & Co., LLP in response to that request has been filed as Exhibit 16.1 to this Form 8-K.


(b) Engagement of Principal Accountant


1. On February 21, 2010, the Company engaged Davis Accounting Group, P.C. as its registered independent public accountants for the fiscal year ending December 31, 2009. The decision to engage Davis Accounting Group, P.C. was approved by the Board of Directors of the Company on February 21, 2010.

Trader, re BFAR - I noticed the dismissal of Sherb and Co last month. BFAR noted that there were no issues with the auditors and replaced them with another auditor. I have seen Sherb dropped with similiar comments by other China pharmas in the last year as well, notably LTUS and CSKI, so I figure there is a legitimate reason for doing so, but I don't know what that is. I agree I don't like seeing it so close to a filing due date and it may cause a delay in reporting this year for BFAR, but then again, maybe the reason they dropped Sherb is that auditors inability to get the report out on time. LTUS, CSKI, and BFAR all had 10K NTs with late filings last year- not a good thing in the eyes of investors and exchanges when looking for upgrade listings. CSKI has since upgraded to the nasdaq and I'll bet both LTUS and CSKI get their 10Ks out on time this year with new auditors.

At any rate, the current price of BFAR makes it well worth the added risk, IMO.

CSR, nelson. I hate that offering-so did the market looking at the SP since. It sure caught me by surprise. Why does the company need to raise more money when they have $154 mil sitting in the bank already. What is interesting is the day before they announced it, they continued to reiterate guidance of $1.15 to $1.20 eps for 2010. It seems to me that guidance should include the effect of the offering, since they obviously knew about it. What do you think?
Bottom line, I'm an unhappy stockholder but certainly not selling here.

LPIH How's this for balance.. I have strongly disliked Crane ever since I met him at the Rodman conference in NYC last fall and he handed out and talked about bad numbers, among other things. Still, I bought stock yesterday at 2.10 as I believe it is a good buy here. If Crane was ever promoted to CEO or even if LPIH needed more money, I sure would run like hell.

BFAR, abh's post did put up a big yellow flag for me, but I still have been adding shares as the price drops. China Finance was also heavily involved in stocks like GFRE, UTA (formerly UTVG), NEWN (formerly CMTP) which have all turned out some fantastic gains for stockholders. Who knows when or how CHFI will get bought out here, but I also am expecting BFAR to put out some strong results for Q4 and 2009 which could turn this around. Those results are due the end of the month.

Meanwhile, my hand is going after the proverbial falling knife today. I have added shares at 94c, 90c, 86c and 84c. Yowser.

I talked to an SEC attorney a few years ago about a similiar situation (bb stock and my gtc order wasn't filled at the open) and he is the one who told me about the exception to the rules for MMs at the open and close.

Picked up more shares today at 94c and have another order in at 90c. As the price keeps dropping, I'll keep adding.

I believe there is an exception to the rule that the market maker has to fill the best bid (or ask) for the first few and also the last few minutes of the day. I'm thinking that for about the first 5 minutes (maybe less), the market maker can simply ignore other bids and asks and trade for his own book. This is allowed so the MM can adjust his books as needed. In this case, the MM probably lined his own pocket, so no fill for you even though yours was better. Dirty scoundrels.

Anyone else see interest rates heading higher in the coming months?

Energy, metals, and commodity prices continue to head higher.
The Fed says they will stop buying mortgage backed securities by the end of this month.
Stock market recovery suggests we are recovering from a bad recession.

I've been slowly adding TBT, a reverse bond ETF that rises as LT interest rates go up.

BFAR My BofA account doesn't show bid and ask either. TDAm has it (currently 99x101).
Btw, BofA never gave me a fill at 1.04 when the price dropped to .98, but I did get fills there before. Needless to say, I cancelled that one.

LPIH Are you sure the filing is not effective (looking at the volume there)? If not, when is it effective?

throwerw, Have you been in any of BFAR's stores? If so, what was your impression of them? Thanks, Cliff

re LTUS, traderfan, I assumed LTUS was referred to overall sales as that still requires about a 50% annual increase in sales, which is excellent.

LTUS announces new 9 story manufacturing facility construction going on the fast track. Ground breaking now, construction completed this summer, and approvals and production by end of year. Also provides sales forecasts of $150 mil for 2011 (vs $66 mil last 12 months). It appears financing is no longer holding them back.


2010, 8:00 am EST
BEIJING, March 10 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board:LTUS.ob - News) ("Lotus" or the "Company"), a growing developer and producer of prescription drugs and licensed national seller of pharmaceutical products in the People's Republic of China ("PRC"), reported the groundbreaking ceremony on March 9 to construct a new building complex on the grounds of its production facility in Beijing.

Officials of Beijing municipal and Chaoyang district governments, officers of the China State Food & Drug, and representatives of both state-owned and private pharmaceutical companies attended the ceremony.

CEO, Zhongyi Liu, welcomed the guests. "After a year of planning, we are pleased to start the construction of the new building complex and expect to finish the construction by July, interior decoration by September and GMP certification by December of this year," he said. "This is a new page for Lotus' development and it will provide important impetus to profitable growth, which is anticipated to reach $150 million in annual sales during the first year after the facility is fully operational."

The new nine-floor building complex will be used for offices, research and development, production, and modern storage. Until the building complex is complete, interim production of the drugs to be produced at the new facility will be produced by third parties

CHGI - Rick Pearson's seeking alpha article yesterday "Predicting China's next skyrocket stock" is likely the driving force behind the large two day run-up here. His target price is $6, so there is more than a double left here and the stock is only now at BV, with a low forward PE, strong growth, and a planned uplisting.

http://seekingalpha.com/article/192573-predicting-china-s-next-skyrocket-stock

CHGI is having a great day on heavy volume-up 17%. I like this one going forward although I'm not sure why the sudden interest today. Fast growing graphite producer in China selling below BV. Entering nuclear graphite market which has wider margins and huge growth as China plans on 40 new nuclear plants by 2015. Here's a link to further info: http://www.crystalequityresearch.citymax.com/f/CHGI_Update_11-20-09.pdf

Wow, congratulations Northernlights. You moved to 1st place from 59th place in one short week. That must be a record move here.

CHIO is doing a presentation at Rodman and Renshaw's investor conference on Tuesday in Beijing. I expect they will provide some needed clarity on their future plans and goals. Let's keep this rally going..

http://www.rodm.com/conferences?id=49&link=presenters

RodmanandRenshaw conference. Thanks for the info, atco. Hopefully, it will be presented in English, not Mandarin. Btw, using your example of the CCME conference at 3:40 pm Beijing time; 13 hours difference would put it at 2:40 AM New York time, not 2:40pm, so be prepared for a late niter to watch it live. I'm thinking recordings will be available soon after.

LTUS Details are out on the financing and I don't see any problems with it:
It is available on an as needed basis. LTUS can draw funds in up to $200,000 increments as needed and the stock price is based on 93% of a 5 day volume weighted average price. Agreement is good for 2 years or once the lender owns 4.99% of the outstanding stock which is the most they can own and also has a $10,000,00 max limit.
Actually, this sounds like great terms for LTUS to me.
http://biz.yahoo.com/e/100305/ltus.ob8-k.html

LTUS Details are out on the financing and I don't see any problems with it:
It is available on an as needed basis. LTUS can draw funds in up to $200,000 increments as needed and the stock price is based on 93% of a 5 day volume weighted average price. Agreement is good for 2 years or once the lender owns 4.99% of the outstanding stock which is the most they can own and also has a $10,000,00 max limit.
Actually, this sounds like great terms for LTUS to me.http://biz.yahoo.com/e/100305/ltus.ob8-k.html

LTUS announced a $10,000,000 financing which will be issued in tranches as needed. Many investors have concerns with how LTUS will fund their agressive expansion plans including a new manufacturing plant now under construction. This new financing should help alleviate those concerns. It is also nice that they can draw on it as needed; hopefully much of the funding will be done at a much higher SP. Need to see the details but I think it is a positive. Also looking forward to Q4 #s which I expect to be strong.

http://www.lotuspharma.com/Press%20Release2010-03-03.html

EGMI-Supposedly it is traded on the grey market. Whatever that is.

EGMI- 10c, Ouch is right!!!
Where is their damn PR???

LTUS Many investors have concerns with how LTUS will fund their agressive expansion plans including a new manufacturing plant now under construction. This new financing should help alleviate those concerns. It is also nice that they can draw on it as needed; hopefully much of the funding will be done at a much higher SP. Need to see the details but I think it is a positive. Also looking forward to Q4 #s which I expect to be strong.

It seems to me that there is somewhat of a weasel clause in the contract. The company has to fulfill ALL of its requirements for listing before the penalty kicks in. If the company is missing just one part of the requirement and that might be exchange approval of the independent board or maybe even the final fees due before listing can occur, then they have more time to comply. Not that I want a delay, the sooner the better, including the AMEX as far as I'm concerned.



The Company has agreed that if its common stock is not listed on a national securities exchange within one hundred and forty-five (145) days of the Closing Date, the Company shall pay the Investors as liquidated damages and not as a penalty, an amount equal to twelve percent (12%) per annum, based on the lesser of (i) the Purchase Price or (ii) that percentage of the Purchase Price which the shares of common stock issuable upon conversion of the Series B Preferred Stock and issuable upon exercise of the Warrants (the “Underlying Shares”) bears to the number of shares of common stock initially issuable upon conversion of the Series B Preferred Stock, provided, however , such payment of liquidated damages shall not accrue until the Company fulfills all of its requirements for listing on a national securities exchange.

BFAR Seller is back and willing to sell shares at 1.09. I just picked up 21K. Last Q, this fast growing Chinese drug company earned 10c and is trading at a forward PE of 2 based on guidance. Negative is how many more shares does the seller abh3 discussed have to unload??? Let's see if he goes away this afternoon again.

DRWI Wade,Company earned 37c lastQ and guiding for another big increase in revs and presumably profits in the current Q. I'm betting that the doublebottom from a month ago will hold. I added shares at 10.90

BFAR, thanks abh3. Someone correct me if I am wrong, but since they are conveniently under the 10% ownership threshold, I believe their sales of stock here only need to be reported on an annual basis. That means, we have no idea how much stock they may have sold since last year when their holdings were reported.

re: amex listing rqmts. Thanks Guy, I now see that CHGS qualified under standard #3, which allows a minimum $2 price. I don't remember CHGS ever announcing that they are working on an upgrade listing which may be part of why they have had such a nice pop in the SP today.

BFAR- Another typical day, the seller shows up mid-morning and beats the stock price back down again.

Abh3vt, which one of those owners, and directors you listed are a part of that China Finance connection? Thanks, Cliff

CHGS announcing they are upgrading to the AMEX from the bb as of tomorrow and it is off to the races today- currently +20%. I've liked this one's growth potential and prospects for quite some time. Once again, it shows the power of a listing upgrade to these chinese bb stocks. Does anyone have a link to the requirements for an amex listing? I recall it was a tier system but don't remember the details.


GONGYI, China, March 3 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC Bulletin Board: CHGS; NYSE Amex: CHGS) ("Gengsheng" or the "Company"), a high-tech industrial materials products company in China with products capable of withstanding high temperatures, saving energy and boosting productivity in certain industries such as steel and oil, today announced that the Company has received approval to list its common stock on NYSE Amex and will begin trading on March 4, 2010. The Company will trade on NYSE Amex under the ticker symbol "CHGS."

"We are excited to be moving onto NYSE Amex as this opens a new chapter in our 25-year corporate history," Mr. Shunqing Zhang, Chairman and CEO of China Gengsheng Minerals, commented. "As a leading industrial materials company, China Gengsheng Minerals has successfully developed new products to help oil and steel producers improve efficiency and conserve resources. The transition to NYSE Amex enables China Gengsheng to gain more visibility among institutional investors, and to strengthen our investor base. As we continue to progress in our corporate objectives, we will further enhance our corporate governance structure, strengthen internal control, and meanwhile focus on new products development and sales expansion to achieve continued growth and maximize value for our shareholders."

BFAR Which ones of the owners listed are a part of that China Finance connection?

CSR reported earnings of 38c vs 23c for Q4 on 27% jump in revs. For 2008, earnings were $1.01 vs 72c, revs were $580 mil vs $427 mil. Also guiding for 2010 revs of $800-820 mil and eps of $1.15 to $1.20. Over $2.20 in cash on the balance sheet for this nasdaq company. Looking strong to me: I think this stock should be in the double digits (currently $7.55)

ihtblr, I looked on Seekingalpha and did not see any negative article on SKBI. There was one recently about CBPO alleging criminal ties that attracted wide attention, perhaps that is what the Geo guy was thinking about? I'm thinking SKBI has become oversold at current levels.

Re: reserve fund MM: Interesting story, nelson. I'm glad it is working out for you. I switched my mmfund at TDAM to a government treasury fund in Summer of 2008. Totally safe but they paid virtually no interest (of course, no mm fund is paying beans any more either).

Question: Are you saying that the entire amount you had in there has been frozen until now or did they release the lion's share of it long ago? That could be real expensive when compared to investing some of it back in the market a year ago.

Hard to see the China small caps continuing to drop like rocks much longer when most only have single digit PEs now coupled with dramatic growth ahead. Maybe Bernanke's renomination with near zero interest policy will settle the markets. I added NEWN and bought back into LPIH this morning (held my nose re: the Crane effect)

Wade, I have netflix service and like it. But the day will come when we download most of our movies directly from the internet. Netflix already offers that for a percentage of its movies using Roku but whether Netflix or someone else will become the industry leader for that is an unknown.