China Dom. Bio-tech Hldgs Inc. (fka CDBH)

[Potse]

DesertRat1...interesting development.....

The management of Cienega Creek Holdings, Inc. is pleased to announce that the company’s Board of Directors has agreed, in principle, to a majority ownership purchase of the company’s common stock. The company is in the final phases of the transaction. The expected buyer is one of Wall Street’s most respected and successful consulting firms. Baring any unforeseen circumstances, this transaction is expected to occur within then next 10 days. Additional information, as required, will be made available in our public filings at www.sec.gov.

http://www.cienegacreek.net/LETTER%20TO%20SHAREHOLDERS%20Nov%202009.pdf

The letter doesn't specify whether the consulting firm itself or a potential client will use the CCKH shell to go public. But either way, this change in majority ownership is a welcome sight. I'm assuming this means that CCKH will no longer be concentrating on the start-up software subsidiary the CEO is/was trying to establish, and will instead focus more on a merger/acquisition.

I wasn't particularly enamored with the dual approach that the CEO was taking previously as I felt it was more of a hinderance toward completing a reverse merger. And, in my opinion, retail investors probably stand a better chance of making some decent money on this shell if a quality reverse merger of an already established business can be completed.

This could get pretty interesting, depending of course on the exact nature/structure of any deal. Shell investing can be a hit-or-miss kind of thing, but I figure if a person concentrates on picking up some "quality/value" shells you stand a good chance of eventually hitting some home runs.

The current shell structure of CCKH is relatively attractive when compared to the share structures and valuations that you see on some of the shells receiving attention recently. For example, both AMCG and JNTX have shell share structures (adjusted for cancellations) significantly higher than CCKH. Pre-merger shell valuations on both of those shells has exceeded $9M. For comparison, that is the equivalent of CCKH trading at nearly $4 per share.