GE -
mentioned in the 3rd section, GREEN HELL, by Mike Shedlock (Mish), hope the link works. 2nd post here in 6 years - hit the snooze button.

http://globaleconomicanalysis.blogspot.com/2009/11/cap-and-trade-three-card-monte-dead-for.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29&utm_content=Twitter

I wonder if they can find a use for all that sand.
http://www.telegraph.co.uk/news/worldnews/asia/china/1516046/Beijing-is-covered-by-desert-sandstorm.html

CYXN - I consider this to be significant -
"Net Revenues. For the three month period ended June 30, 2009, our net revenues decreased approximately 37.1%, from $14,580,500 for the three month period ended June 30, 2008 compared to $9,169,544 for the same period ended June 30, 2009."
We are then further now told -
"Our revenues for the three months ended September 30, 2009 are lower due to the transition of the Company’s sales strategy."
How much accounting crap must we put up with???

Have you considered the possibility that the spike yesterday was caused by the warrant holders exercising their .04 warrants, for .14 - which also just increased the float?

Note 6 – Warrants and options
A summary of outstanding warrants and options as of September 30, 2009 is as follows:

Warrants

Weighted Average Exercise Price

Balance 06/30/09
9,133,340
$0.04

Wow, the only thing that seems to have moved this today, is the PR that they signed on 3,571 when the guesstimate was 3,000.

I've got enough thank you. Want to buy some MXMSF?

Future prospects are based on -
1)
From 10Q - 09/30/09
Investing activities:
Net cash used in investing activities was $1,758,301 for the nine months ended September 30, 2009. It was attributable to the capital expenditures of $872,341 on construction in progress for the new 5000 tons capacity plant, $236,982 on intangible asset and automobile and deposit for equipment of $767,420 also for the new plant, partially offset by the dividend of $43,860 received from the 20% equity investment and repayment from related parties of $74,582.

2)
From 10K - 12/31/08
a) They have taken steps to ensure raw material supplies
b) Based on the new plant, they will then have 6000 tons capacity, which will be more than No 2 (where they already compete with a 3000 ton supplier,"BZ" and their sales are 80% of BZ's, and they will be equal in terms of tonnage, at 6000, with No 1, "SZ".

Raw Materials And Principal Suppliers Of Zhongxi

Zhongxi’s amorphous alloy cores have three main raw materials: amorphous alloy ribbon, silicon steel sheet and epoxy resin. Except for amorphous alloy ribbon these materials are currently readily available in its domestic or the international market.

The current supplier of raw amorphous alloy strip for manufacturing amorphous alloy core is Hitachi Metals Co., Ltd., which is the biggest manufacturer of amorphous alloy strip in the world. Zhongxi has taken steps to build a strong relationship with Hitachi, in order to be able to purchase sufficient amounts of the product to meet its needs. Notwithstanding the fact that the supply of Hitachi's amorphous alloy strip is exceeded by the global demand for its product, we believe our relationship with Hitachi will generally permit us to purchase sufficient amounts of material to keep up with our demand. We expect that a new source of amorphous alloy ribbon will soon be available from China An Tai Technology Co., Ltd. We have signed an agreement with China An Tai Technology, where we have been given priority to purchase amorphous alloy ribbon products.

COMPETITION OF ZHONGXI

While many manufacturers are capable of producing traditional transformers, fewer than 20 manufacturers in China have the technology to produce amorphous alloy core transformers and only four are capable of large scale production. As for the production of amorphous alloy cores, Zhongxi is one of only three major manufacturers in China. The other two are Shanghai Zhixin Electric Co., Ltd. and Beijing Zhong Ji Lian Gong Co., Ltd.


Comparative data for Zhongxi and our two main competitors in the amorphous and steel core business is set forth in the table below:

China Power // Shanghai Zhixin Electric Co.Ltd // Beijing Zhong Ji Lian Gong Co., Ltd.
Time of Establishment 2004 // 1998 // 2005
Sales revenues of 2008 (RMB) (1) 65,406,798 // 1,000,000,000 // 82,541,025
Sales revenues of 2008 (U.S. dollar) 9,394,491 // 143,631,728 // 11,855,510
Sales area national national national
Annual production capacity 1000 ton 6000 ton 3000 ton

(1) 2008 sales revenues for Shanghai Zhixin Electric Co.Ltd were estimated based on its sales revenue data up to June 30, 2008 because their audited year-end of 2008 financial statements have not been yet made available.



While Zhongxi’s competitors are larger than it, we believe it has a number of advantages over its competition. Its patented Consecutive Anneal Stove For AMDT Core, permits it to produce its cores at a lower cost than its competitors which we believe will permit it to price its product lower than competitors but keep higher margins. In addition, we believe that its experience as a transformer manufacturer will permit it to offer better service and products that are better designed to meet its customer's needs. Zhongxi’s management also believes that its competitors are totally dependent on imported amorphous alloy ribbon as raw materials while it has taken steps to learn how to use amorphous alloy ribbon obtained from domestic sources which will relieve the supply shortage and reduce a bottleneck to our manufacturing process which Zhongxi’s management expects will continue to plague its competitors.

From the 10Q of March 31, 2009, this table shows on a fully diluted basis, what the holdings and percentages will be. Since no officer, director, or beneficial owner over 5% has filed for selling, and this table adds up to 17,159,686 then out of the fully diluted 19,365,013 that leaves a possible 2,205,327 as the float.
At a stretch, if the electric company sold, that would take us up to 2,765,427
Would love to hear other ideas.

Common Stock All Directors and Officers of the Company as a group 3,517,948 23. 5%

Common Stock Trustees for Alloy Science Shareholders (2) 3,803,625 25.5 %

Common Stock Zhejiang Lvneng Electric Co., Ltd.
1F, Building 3, No.75 Wen Yi West Road, Hangzhou City, Zhejiang Province, China 560,100 3.8 %

Common Stock Friedland Corporate Investor Services LLC,
600 So. Cherry Street, Suite 530 Denver, Co. 80246 (3) 1,451,613 9.7 %

Common Stock & Warrants KWCB Investments, Ltd.
Room B-2403, Yihe Bldg Hanguang Road, Xi'An. Shaanxi Province 710065. (4) 6,087,200 35.86 %

Common Stock & Warrants Jing Li Hay
A9E Intol Apartment Gau Zhang Garden Xibuhe Chao Yang District, Beijing, PRC (5) 869,600 7.37 %

Common Stock & Warrants Yao Gao
Room 5 Unit 2, No1 Xinme High Tech Area, Chengdu Sichuan Province, PRC (6) 869,600 7.37 %

(4) Consists of (a) 3,043,600 shares of common stock and (b) 3,043,600 shares of common stock issuable upon exercise of the warrants. Jin Wu has voting and investment control for KWCB Investments, Ltd.

(5) Consists of (a) 434,800 shares of common stock and (b) 434,800 shares of common stock issuable upon exercise of the warrants.


(6) Consists of (a) 434,800 shares of common stock and (b) 434,800 shares of common stock issuable upon exercise of the warrants.

This is not my "dry powder", it's more like my "ammo dump", been in slightly over a year, at $30.58
I'm waiting to see how far it can race this week, I think the time is fast approaching when I say "thanks for the memories"!

That 7,500,000 you mentioned relates to the shareholding of a company they have a 20% investment in, "Yan An".

China Power Equipment, Inc.
Notes to Consolidated Financial Statements (Continued)
Unaudited

NOTE 5 – INVESTMENT


Investment consists of:

September 30, December 31,
2009 2008
20% equity interest $ 253,334 $ 236,384

In May 2005, Zhongxi made a long-term investment in Shaanxi Yan An Amorphous Alloy Transformer Co., Ltd (“Yan An”) to purchase 20% of equity interest for approximately $159,413 (RMB1,090,000). The equity method has been used for this investment for the nine months ended September 30, 2009 and 2008, respectively. Zhongxi purchased the shares of Shaanxi Yan An Amorphous Alloy Transformer Co., Ltd from Xi'an Amorphous Alloy Science And Technology Co., Ltd. (Alloy Science). The balances for the investment including earnings from the investment as of September 30, 2009 and December 31, 2008 were $253,334 and $236,384, respectively. An evaluation had been performed by the company as of December 31, 2008 to ensure that the 20% of the net assets value of Shaanxi Yan An Amorphous Alloy Transformer Co., Ltd was above its investment amount.

The following is the shareholder’s list of Yan An Amorphous Alloy Transformer Co., Ltd as of September 30, 2009:


Yan An Amorphous Alloy Transformer Co., Ltd Shareholders’ List
Shareholders’ Name # of shares %
1 Mr. Chang Ming 4,500,000 60.0 %
2 Zhongxi 1,500,000 20.0 %
3 Mr. Yang Shuchen 500,000 6.7 %
4 Mr. Zhao Chongxiao 500,000 6.7 %
5 Mr. Wang Xinyu 500,000 6.6 %
Total 7,500,000 100 %

Add $10.00 and you may get lucky!

Gorilla - what amount do you come up with for the float?

CXDC - uplisting to NASDAQ November 27.

China's power consumption up for 5th consecutive month.

China's National Energy Administration (NEA) announced Friday that the country's power consumption in October rose 15.87 percent year-on-year to 313.42 billion kilowatt-hours (kWh), up for the 5th consecutive month since June.

The growth is 5.63 percentage points higher than the September figure. Accumulative power consumption in the first ten months totalled 2977.5 billion kWh of electricity, up 2.97 percent over the same period last year.

China's industrial sector used 232.4 billion kWh of electricity in October, up 2.2 percent from September and 17.7 percent year-on-year, according to NEA statistics.

In a breakdown, 193.3 billion kWh out of the 232.4 billion kWh was consumed by heavy industry, posting a 4.4 percent growth month-on-month and 20.11 percent growth year-on-year. The rest was consumed by light industry, representing a 6.88 percent growth month-on-month.

Of the power consumed in the first 10 months of this year, 80.2 billion kWh went to primary industry, which covers agriculture, animal husbandry and fishery.

The second industry, including mining, manufactural, building and construction sectors, consumed 2191.2 billion kWh while the tertiary industry, or the service industry, consumed 325.9 billion kWh, according to NEA.

The rapid increase in October power consumption is a result of rebound in heavy industry, which began to slump in the same period last year, said Niu Li, senior researcher with the State Information Center.

"Power consumption will continue to pick up in the fourth quarter as the country's economy is witnessing a sound recovery," he said.

http://www.chinadaily.com.cn/bizchina/2009-11/14/content_8970479.htm

XNYH - once the matter of the building is settled, so should the loan. From 10Q -
The “receivable for disposal of building” arose from a contract under which the Company sold a building. The contract provided that the Buyer should pay RMB 5,950,000 on the day the Company signed the contract. The remaining balance should be settled in two installments: RMB 10,250,000 by June 30, 2009, and RMB 10,250,000 by December 31, 2009. At that time, the Company did not foresee any risks associated with future payment as the contract is legally executed. Based on review of the creditworthiness of the Buyer, management was confident that the Buyer would meet the payment terms. Hence no allowance was suggested at December 31, 2008.

By September 30 2009, the Buyer had paid the Company RMB 4,000,000 of the RMB 10,250,000 due on that date. The remaining RMB6,250,000 is outstanding, because the Buyer increased its investment in 2009 for their business development, which resulted in tightened cash flow. On June 30, 2009 the Company made a supplemental agreement with the Buyer, in which the Buyer has agreed to settle the entire balance before December 31, 2009. If it fails to meet the revised payment terms, it is mandatory that the Buyer pay the Company at an interest rate which is 20% higher than the general bank interest rate during the extended period.

The Company has not reserved against this receivable because the Company believes that it is unlikely the Buyer would fail to meet the payment terms, due to the penalties involved. By the end of 2009, if the Buyer does not meet the revised payment terms, the Company will reconsider the necessity for an allowance.

TSTC revenue recognition, and a benevolent IRS - only in China.

We recognize our revenue upon the completion of contracts and have made full tax provision in accordance with relevant national and local laws and regulations of the PRC. A contract is considered completed upon completion of all essential contract work and when installation has been accepted by the customer. It is the common practice in the PRC that invoices are not issued to customers until payments are received. We follow the practice of reporting our revenue for PRC tax purposes when invoices are issued. All unbilled revenue will become taxable when invoices are issued. For PRC tax reporting purposes, we recognize revenue on an "invoice basis" instead of when goods are delivered and services are rendered. This is not in strict compliance with the relevant laws and regulations. Accordingly, despite the fact that we have made full tax provision in the financial statements, we may be subject to a penalty for the deferred reporting of tax obligations. The exact amount of any penalty cannot be estimated with any reasonable degree of certainty. The Board of Directors considers it is unlikely that the tax penalty will be imposed.

At least it seems to have a B/V of C$1.38 and a chance at life, however tenuous.

3Q 2009 results
http://money.cnn.com/news/newsfeeds/articles/marketwire/0558947.htm

CMFO reported yesterday, nice balance sheet, Cash = $31,298,084, while TOTAL Liabilities = $6,771,288

Q3 revenues increased by 16.5% to $13.4 million YOY; seafood-based snack foods represent for 90.3% of revenues. Gross margins increased 110 basis points to 32.0%.
Q3 Net income increased by 24.5% to $3.2 million compared to Q308; EPS was $0.14 vs. $0.11 in Q308.
For the 9-months ended September 30, 2009 revenues increased 26.5% to $44.7 million and net income increased 18.4% YOY to $10.2 million. EPS was $0.44 vs. $0.37.
Sales to new distribution territories increased 214.7% during the first nine months of 2009 vs. the same period in 2008.
Company completes second phase of capacity expansion to 20,000 tons per annum, a 100% increase in capacity leading into the 2010 fiscal year.

CBPO
Third Quarter Financial Performance Highlights

We continued to experience strong demand for our products and services during the third quarter of 2009, which resulted in growth in our revenue and net income. The following are some financial highlights for the three months ended September 30, 2009:

� Revenue: Revenue increased $13,239,824, or 95.9%, to $27,039,739 for the three months ended September 30, 2009, from $13,799,915 for the same period in 2008.

� Income from operations: Income from operations increased $6,981,412, or 99.1%, to $14,027,734 for the three months ended September 30, 2009, from $7,046,322 for the same period in 2008.

� Net income: Net income decreased $10,672,115, or 238.3%, to a net loss of $6,193,569 for the three months ended September 30, 2009, from a net income of $4,478,546 for the same period in 2008, as a result of the $13.2 million non-cash charge of fair value of derivative liability.

� Fully diluted net income per share: Fully diluted net loss per share was $0.29 for the three months ended September 30, 2009, as compared to the net income of $0.21 for the same period in 2008.

CREG on the move today, CC on Monday 16th.

There have been no numbers released since listing, only forward looking stuff, that looks good. It has been subject to strong attacks both on the IH board, and Yahoo, saying that it was a scam - most probably by a person(s) unknown, with their own motive. However, one of the investors - Ceyuan, is mentioned in this link, under John S. Wadsworth Jr.
http://www.frbsf.org/banking/asiasource/events/2007/0706/biographies.html
That is what is probably driving the price, a known respectable name - also the Carlyle group in CREG.

From -
http://stockpromoters.com/view_promotions_by_symbol.asp?promoted_symbol=GCHT


Stocks Promoted : (3) Total
Displaying top 10 25 50 Viewing 1-3


--------------------------------------------------------------------------------


Company: Gc China Turbine Corp. ( GCHT ) Promoter: Small Cap Fortunes
11/2/2009


End of Day: Close: 2.75 Volume: 230,714
Change: 0.01 % Change: 0.365

3 Month : High/Low: 2.84 / 1.1 Volume 3m : 160,321

Compensation: $3,000 as an editorial fee from CFM



Company: Gc China Turbine Corp. ( GCHT ) Promoter: Small Cap Fortunes
10/22/2009


End of Day: Close: 2.15 Volume: 207,797
Change: 0.05 % Change: 2.381

3 Month : High/Low: 2.15 / 1.005 Volume 3m : 131,896

Compensation: one hundred thousand dollars from Cosworth Communications Ltd



Company: Gc China Turbine Corp. ( GCHT ) Promoter: Wall Street News Alert
10/7/2009


End of Day: Close: 1.3 Volume: 153,200
Change: 0 % Change: 0

3 Month : High/Low: 1.46 / 0.96 Volume 3m : 72,145

Compensation: Nineteen Thousand Dollars

CHCG
They'll be filing late...again.

So just how many stocks have an agent to kill H1N1 -
BONU, SKVI, PURE .....

Howdy Tim et al. There may be some small change to be made via a short term trade on GCHT. There is a poster on that board (real pest - scamexposer) who mentioned that another promotion may be in the works. If you go to www.stockpromoters.com you can enter GCHT, and see the promotions -
Date / Price / Volume / 3mt volume
10/7 / $1.30 / 153,200 / 72,145
10/22 / $2.15 / 207,797 / 131,896
11/2 / $2.75 / 230,714 / 160,321
It's currently at $3.43, so judging by the above, around the 17th, we could be looking at say around $4.00
Any entry under $3.50 should be good to take 10% and be out.

If a return to normalcy would help our emerging stocks, is SHIPPING helping by making a comeback? A screen I follow, of 31 shippers, showed the following today -
5 container, all up
13 dry bulk, all up
13 tankers, 2 down, 2 no change, 9 up.

RDBO - SIAF

For a quick snapshot on RDBO, I used the figures at GeoInvesting, Quote.
RDBO = $5.00 shares 15M, and based on cash requirements below, that price may well drop significantly. No room for R/S?
SIAF = $0.81 shares 53M, so there is lots of room for an R/S, however, their cow increase was just paid for, and accordingly, will unfortunately not become CASH cows, until 2013.
Seems like SAIF may be the more attractive, long term, if you have SPARE cash to invest now, because as of today, they both look the same as a 0.75% 4yr bank CD.

As of March 31, 2009, Mega Profit Agriculture made a total down payment of RMB 84,830,400 (approximately US$12,413,666) to acquire land, buildings and equipment from various parties. The remaining contract amount totals RMB 63,805,485 (approximately US$9,336,983). As of March 31, 2009, Harbin Rodobo also made down payment of $1,024,346 to purchase certain equipment.

October 7, 2008.
Headquartered in Harbin, Heilongjiang Province, Rodobo is one of the largest private companies in the fast growing dairy industry in China. It currently operates a production facility with milk processing capacity of 200 tons per day in Qinggang County in Northeast China, producing high-quality dairy based nutritional products for infants, children, pregnant women, nursing mothers and other adults.

My commenmt = Therefore, at that time annual capacity on a 260 day year, would have been 52,000 tons. Since however, I guess the cows gotta be milked every day, we could be looking at 73,000 tons, 1 year ago.

5/18/2009
Currently, Rodobo International is building its own organic dairy farm that will meet international standards and include top technology equipment".

"We focus on providing high quality premium products for all our consumers and the construction of our dairy farm demonstrates the Company's dedication to this vision. We expect that our new and advanced dairy farm will start operating towards the end of fiscal 2009 and this will give us a tremendous competitive advantage in terms of high quality raw milk resources. Being certified as "Green Food" and winning the lucrative prize: Best Quality Control Enterprise of Dairy Products for 2008, reinforces our leading position in the market and we believe that it will be reflected in our financial results".

Here is a comparison with SAIF.

ZhungXing Cattle Husbandry Co. Ltd. to Add 1,800 Head of Cattle Increasing Dairy Production Output up to 23%
GUANGZHOU, China, Nov 04, 2009 (BUSINESS WIRE) -- Sino Agro Food, Inc. (Pink Sheet: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce the Company's 78% owned subsidiary ZhungXing Cattle Husbandry Co. Ltd. has paid the required deposit to import 1,800 head of cattle from Uruguay. The shipment is scheduled for delivery February 2010.

The Company currently has 3,500 milking cows in production, 1,400 milking cows on standby, 1,200 in nursery and 880 beef cattle. This latest shipment will bring the total cattle and milking herd to over 8,700. This will represent a 23% increase in dairy production capabilities.

Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "By importing quality cattle from Uruguay, the imported cattle will be used to breed a more productive herd. The breeding cycle takes up to three years, by which time we expect to increase our production from 6.89 tons of milk per cow to 8.5 tons by 2013. This will allow us to increase production while maintaining the same unit cost of production thereby increasing both our gross and net profits."

My comment = So if we assume SAIF will have 8,000 milking cows in 2013 that would be 68,000 tons. I think the problem lies in Rodobo getting listed just when the melamine scandal started.

Perhaps an email to the author of this newsletter may be able to help clarify the names, since he mentions Novartis on page 7.
http://www.arcchina.cn/emails/2009_11_10/2009_11_10_arc_china_newsletter.pdf

I guess English does not appear to be your first language, so I'll become as repetitive as you - We want to believe you, but we don't know who you are, so point us to your actual postings on what you have exposed in the past.

You just said "I love exposing pumped up pennystocks for what they truly are, garbage", but I can't seem to find what you have exposed, seems that you alias was only born on Friday November 6th, and you have only ever posted 28 times to this board, so all we have to go on, is your continuous repetitive ranting and raving, quoting from past SEC filings, conveniently overlooking the latest filing. We want to believe you, but we don't know who you are, so point us to your actual postings on what you have exposed in the past.

RDBO - SIAF

For a quick snapshot on RDBO, I used the figures at GeoInvesting, Quote.
RDBO = $5.00 shares 15M, and based on cash requirements below, that price may well drop significantly. No room for R/S?
SIAF = $0.81 shares 53M, so there is lots of room for an R/S, however, their cow increase was just paid for, and accordingly, will unfortunately not become CASH cows, until 2013.
Seems like SAIF may be the more attractive, long term, if you have SPARE cash to invest now, because as of today, they both look the same as a 0.75% 4yr bank CD.

As of March 31, 2009, Mega Profit Agriculture made a total down payment of RMB 84,830,400 (approximately US$12,413,666) to acquire land, buildings and equipment from various parties. The remaining contract amount totals RMB 63,805,485 (approximately US$9,336,983). As of March 31, 2009, Harbin Rodobo also made down payment of $1,024,346 to purchase certain equipment.

7. DEPOSITS ON LAND AND EQUIPMENT

As of March 31, 2009, Mega Profit Agriculture made a total down payment of RMB 84,830,400 (approximately US$12,413,666) to acquire land, buildings and equipment from various parties. The remaining contract amount totals RMB 63,805,485 (approximately US$9,336,983). As of March 31, 2009, Harbin Rodobo also made down payment of $1,024,346 to purchase certain equipment.

Name not mentioned. Now here are some interesting figures -
October 7, 2008.
Headquartered in Harbin, Heilongjiang Province, Rodobo is one of the largest private companies in the fast growing dairy industry in China. It currently operates a production facility with milk processing capacity of 200 tons per day in Qinggang County in Northeast China, producing high-quality dairy based nutritional products for infants, children, pregnant women, nursing mothers and other adults.

My commenmt = Therefore, at that time annual capacity on a 260 day year, would have been 52,000 tons. Since however, I guess the cows gotta be milked every day, we could be looking at 73,000 tons, 1 year ago.

5/18/2009
Currently, Rodobo International is building its own organic dairy farm that will meet international standards and include top technology equipment".

"We focus on providing high quality premium products for all our consumers and the construction of our dairy farm demonstrates the Company's dedication to this vision. We expect that our new and advanced dairy farm will start operating towards the end of fiscal 2009 and this will give us a tremendous competitive advantage in terms of high quality raw milk resources. Being certified as "Green Food" and winning the lucrative prize: Best Quality Control Enterprise of Dairy Products for 2008, reinforces our leading position in the market and we believe that it will be reflected in our financial results".

Here is a comparison with SAIF.

ZhungXing Cattle Husbandry Co. Ltd. to Add 1,800 Head of Cattle Increasing Dairy Production Output up to 23%
GUANGZHOU, China, Nov 04, 2009 (BUSINESS WIRE) -- Sino Agro Food, Inc. (Pink Sheet: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce the Company's 78% owned subsidiary ZhungXing Cattle Husbandry Co. Ltd. has paid the required deposit to import 1,800 head of cattle from Uruguay. The shipment is scheduled for delivery February 2010.

The Company currently has 3,500 milking cows in production, 1,400 milking cows on standby, 1,200 in nursery and 880 beef cattle. This latest shipment will bring the total cattle and milking herd to over 8,700. This will represent a 23% increase in dairy production capabilities.

Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "By importing quality cattle from Uruguay, the imported cattle will be used to breed a more productive herd. The breeding cycle takes up to three years, by which time we expect to increase our production from 6.89 tons of milk per cow to 8.5 tons by 2013. This will allow us to increase production while maintaining the same unit cost of production thereby increasing both our gross and net profits."

My comment = So if we assume SAIF will have 8,000 milking cows in 2013 that would be 68,000 tons. I think the problem lies in Rodobo getting listed just when the melamine scandal started.

14. Issuance of Series B Convertible Preferred Stock Securities Purchase Agreement



On April 30, 2009, the Company entered into a Series B Convertible Preferred Stock Securities Purchase Agreement (the “SPA”) with China Hand Fund I L.P. (“China Hand”). Pursuant to the SPA, on May 1, 2009, the Company issued and sold to China Hand, and China Hand purchased from the Company, 1,116,388 shares of the Company’s Series B Convertible Preferred Stock (“Series B Preferred Stock”) and warrants (the “Warrants”) to purchase 7,814,719 shares of its Common Stock at an initial exercise price of $0.187 per share (subject to adjustments) for a period of five (5) years following the date of issuance for an aggregate purchase price of $5,400,000 (the “Private Placement”).


Kuhns Brothers Securities Corporation (“Kuhns Brothers”) acted as placement agent in connection with the Private Placement. As compensation for its services, Kuhns Brothers received a cash fee equal to $540,000, representing 10% of the gross proceeds received from the Private Placement, as well as warrants to purchase 3,907,358 shares of the Company’s Common Stock (the “Agent Warrants”), representing 10% of the aggregate number of shares of common stock issuable to China Hand in the Private Placement upon conversion of the Preferred Stock. In connection with the signing of the SPA, on April 30, 2009, the Company also entered into a Closing Escrow Agreement by and among the Company, China Hand and Escrow LLC (the “Escrow Agent”), pursuant to which China Hand agreed to deposit all funds due to the Company under the SPA in escrow until such time as all closing conditions of the SPA have been satisfied and the Escrow Agent shall have received notice, executed by both the Company and China Hand, instructing the Escrow Agent to release such funds to the Company. The Closing Escrow Agreement terminates upon the release of all funds from escrow as described above, or upon the 90 the day following the date of the Closing Escrow Agreement if no such instructions to disburse funds are received by the Escrow Agent, on which date all such funds will be returned to China Hand.


Make Good Provision


Additionally, the Company agreed to make good provisions that will require the Company to issue to China Hand up to 334,916 additional shares (the “Make Good Shares”) of its Series B Preferred Stock if it does not achieve an audited after-tax net income of $5.0 million for the year ending December 31, 2009 (the “2009 Income Target”); if the Company is successful in achieving the 2009 Income Target, China Hand will transfer 22,327 shares of its Series B Preferred Stock to certain members of the Company’s management, which shares have been deposited into an escrow account. The Company also agreed to issue to China Hand 27,910 shares of Series B Preferred Stock if the Company’s Common Stock is not listed for trading on a national securities exchange on or before January 31, 2010 (the “Listing Shares”).

One year ago was when the Melamine scandal hit the news.

A problem I am having, is that looking at the SCE filings, it still seems to be written in Mandarin, and needs translating! lol! However, I am giving them the benefit of the doubt. It seems that every sentence one reads, brings up 2 questions. For example, here is a press item from JULY 10, 2008

BEIJING, July 10 /Xinhua-PRNewswire-FirstCall/ -- MyStarU.com, Inc. (OTC Bulletin Board: MYST; Frankfurt Stock Exchange: TQF) announced today that its wholly-owned subsidiary, 3G Dynasty Inc., an entertainment and media investment firm focused on developing entertainment content for Internet, television and film, announced that it has completed the film "Dayoucun Subaye," a contemporary drama illustrating the culture and contrasts of Guangdong's 100 million people. An Asia premiere is planned for later this summer.
From page 17 of the last 14c of September 30, 2009.
The Company expects to release the DaYouCun motion picture by October 31, 2009.
(a) Why did it take 16 months to get to market?
(b) HAS IT BEEN RELEASED???

On the other hand, at page F50 there is this gem -
NOTE 15 – SUBSEQUENT EVENTS

On November 3, 2008, the Company’s subsidiary, Subaye IIP Limited entered into a contract with Gold Swallow Show Shop Limited (“Gold Swallow”), a PRC-based management agency for 14 shopping malls in Guangdong, China for 1,700 software licenses to be utilized by tenants within Gold Swallow’s shopping malls. The contract is for a term of one year. The license fees earned by Subaye IIP will be $170,000 per month or $2,040,000 in total.

On December 16, 2008, Subaye IIP Limited entered into a contract with Gold Swallow for 2,200 software licenses to be utilized by tenants within Gold Swallow’s shopping malls. The contract is for term of one year. The license fees earned by Subaye IIP will be $220,000 per month or $2,640,000 in total.

Holy crap what sweet deals! All in all, I'm slowly being converted to the fact, that they are a multimedia conglomerate.

E-MAIL to J.Crane - REPLY at bottom.

A filing of MyStarU.com, Inc., Schedule 14C of September 30, 2009 listed the following subsidiaries, and the percentages owned -

MyStarU Ltd 100.00%
3G Dynasty Inc. 100.00%
Subaye.com, Inc. 69.03%
Subaye IIP Limited 69.03%
Guangzhou Panyu Metals & Materials Limited 100.00%
Guangzhou Subaye Computer Tech Limited 69.03%
Media Group International Limited 69.03%

There are 4 entities at 69.03%. With the recent full "acquisition" of Subaye.com, Inc., does that leave 3 entities still to be acquired, or were any of them included in said deal?
If none were included, then perhaps you can guide, either by reply, or in a not too distant PR, as to what plans the company has for their acquisition.

I have read a line attributed to you, "There are no significant acquisitions on the horizon either". I think the general stateside shareholder consensus, was that the 31% acquisition of Subaye.com, Inc., would have been a rather benign event, instead it turned out to be an over 100% dilution. Obviously, what you may consider to be of no significance in China, is a major matter stateside.
I am concerned, as I am sure are many other shareholders, that further devastating dilution will occur, since Guangzhou Subaye only owns fifty percent (50%) of Aixi Software! Any comment?

I will now excerpt from 2 paragraphs, concerning 2 of the Company's service providers, CN and SSTH -

"The Company has an ongoing agreement with China Netcom ("CN"). CN is an internet and webhosting provider in the PRC and manages the internet connection and webhosting of the Company's www.subaye.com website. CN is compensated such that CN receives forty percent (40%) of the Company's gross membership fees.
The Company does not believe it has the ability to replace CN with another comparable internet and webhosting provider."

"The Company has an ongoing agreement with SSTH Limited ("SSTH"). SSTH is a merchant service provider. SSTH is compensated such that SSTH receives ten percent (10%) of the Company's gross membership fees. The Company does not believe it has the ability to replace SSTH with another comparable internet and webhosting provider."
Observation - seems like the last line of SSTH was simply copied fron the previous paragraph, re CN.

Question - while these agreements are mentioned on page F7, the SSTH agreement is not mentioned under Vendor Commitments, on page F48 - was that an oversight?
Question - are these the best terms that the Company can get in the whole of China? It seems a bit lopsided, that for the vast revenue stream expected by the Company, it can only be achieved in conjunction with those 2 service providers! Has this Delaware registered company ever attempted to obtain bids from any US service providers?
So overall, does this mean that fifty percent (50%) of the membership fees are going to service providers, and will you at least be footnoting this on the Income statement? (I am aware on the netting under EITF 99-19, but I am sure you will agree, more information leads to greater transparency.)

There is another paragraph, on page F6, which reads -

CONTROL BY PRINCIPAL STOCKHOLDERS

MyStarU.com, Inc., a Delaware corporation owns beneficially and in the aggregate, the majority of the voting power of the outstanding shares of the common stock of the company. Accordingly, MyStarU.com, Inc., its directors, executive officers and their affiliates, if they voted their shares uniformly, would have the ability to control the approval of most corporate actions, including increasing the authorized capital stock of the Company and the dissolution, merger or sale of the Company's assets or business.

Does that still hold true, when one considers -

Let us look at some simple mathematics. Consider an Income amount of $4,350,000.00 - under pre acquisition, this would have been split 69:31 with Subaye Inc getting
69% = $3,000,000.00 assigned to 3,000,000 shares for an EPS of $1.00
31% = $1,350,000.00 to Subaye.com, Inc.
Under the new math, said $4,350,000 now has to be shared by 3,000,000 + 3,408,852 shares = 6,408,852.00 i.e., $0.68 EPS
So the old Subaye Inc 3,000,000 gets x $0.68 = $2,040,000.00
While the Subaye.com Inc group gets 3,408,852 x $0.68 = $2,310,000.00
I have rounded, and omitted the 200,000 "warrant exchange".
This reminds me of a line from the famous poem The Rainbow, written in 1802 by William Woodsworth "The Child is father of the Man".

Also attributed to you - "Both the 3D mall and Dayoucun advertising are going to be very expensive but we (including me) all believe in the roi each of those investments will produce. Dayoucun is going to be national here in china and could very well produce significant revenues in the six months ending in May".
I am going to assume, that DaYouCun is being produced by 3G Dynasty, Inc., in conjunction with other business partners, and would therefore like to know, what are the relative costs and working interest percentages involved here.

I noted a mention of presenting in 6 US cities the week after thanksgiving - would San Francisco be one of them, and if so, could I get an invite.
REPLY
If you would like to talk then please always feel free to call.

I will say that all 3 subsidiaries of Subaye.com, Inc were acquired in
connection with the acquisition of Subaye.com.

Jim

Rights Offering - also very much British, and thus passed along to Commonwealth countries.. ah, brings back pleasant memories. Problem is, ain't no gravy train for anyone except the shareholders.