China Growth Stocks

[Potse]

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/