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.
