CKGT I'm just not sold on these Cactus cigarettes and it's going to take a capital raise at some point to move the plan forward which will be dilution to shareholders.
I don't really believe CKGT will achieve a $.40 EPS for 2009. I can't see $.13 EPS in last quarter. I also think CKGT will miss that guidance and since the company is trading well above book it will cause a short term sell off which will need to recover.
I am long on CKGT.. don't get me wrong, but I see disappointment before happiness with CKGT. I think long term it is a genuine winner.. but I'm not going to be scared to flip out when the time comes because I know it will eventually have a healthy pull back.
I take into account far more than just fundamentals. I was once a stock promoter/IR guy so I know that sentiment and emotion play an even greater role.
With CKGT, they have set the bar high in regards to forward guidance. In my opinion they have done so to create a short term positive effect on their share price.. most likely in order to gain altitude for an offering.
Unlike listed companies, OTCBB's don't normally do well on PIPE offerings due to limited liquidity. I believe guidance will be missed, a PIPE deal will be entered into and this will impact the mood of the market. The mood of the market is a powerful thing.
With SIAF, you have a company that has already announced a dividend, which I believe will be small but designed to show strength. SIAF requires little to no capital because its projects are all mostly JV's in which the Government picks up the tab. Also, I believe Beef and dairy obviously have a larger market potential than cactus cigs.
You are also going to see a more positive mood as watchign a pink up list to the OTCBB is far more exciting to small cap investors than a OTCBB move to the NASDAQ (wich SIAF is working towards anyway)
Last but not least.. once they do uplist, I believe you will see a surge of buying come in from those skeptical about this pinksheet.. and the float is small.
That is what I'm expecting anyway.
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