Dionics, Inc. (DION)

[Potse]

CEO comments from the press release.....

"We consider ourselves quite fortunate to have become associated with CML, for several reasons," Kravitz explains. "First, their financial strength puts a safety net under our Company, an invaluable asset in these difficult times." "Next," he continued, "that same financial strength, combined with their confidence in our technology, will permit us to more aggressively explore new products, new opportunities for growth and even potential strategic acquisitions that may become available, here and abroad." "Finally," he concluded, "their well-established marketing and manufacturing contacts in Asia, and particularly in China, provide us with entree to significantly larger markets for our leading product, PV MOSFET-Drivers." In closing, he then added, "In a year or two, we could look like a very different Company."

That last comment by the CEO in the press release is precisely why I think DION could turn out to be an extremely nice investment at current prices (5-12.5 cents).

IMO, although the risk may be high, situations like this one certainly have the ability to produce 5-20 bagger types of returns. Everytime I look at DION it somewhat reminds me of DYSL several years back, or to some extent ESEX (which became KEYW and was eventually acquired). Both of those companies had periods when retail investors probably became disenchanted with the prospects of the companies/stocks and a lot of investors probably decided to "give up" on the stocks. But both of those companies underwent transformations via growth/acquisitions and eventually "looked like very different companies". And both stocks produced very nice gains.

That is where I see DION today: at that pivotal point where there are inklings/suggestions of positive and possibly dramatic changes coming and the stock is still pretty much off the radar screens of most investors.

DION has a fully-diluted market cap under $3 million at current prices. With Roy Teng (Managing Director of Brean Murray, Carret & Co) now connected to the company, the prospects for growth/acquisitions/news in the China/Asia theater have probably improved greatly.

Assuming that Alan Gelband continues to hold for awhile the 2.2M share block that he owns, there are currently less than 5M shares out there for any open market purchases if hedge funds or institutional investors start developing an interest in the situation.

http://www.gelband.com/index.html