Value Microcaps Zip Code Changers

[Potse]

Guy...SBAT.....

"SBAT - I just saw that they filed 8-K on Monday
and unfortunately, the CEO of VIKING decided to be
a POS greedy bastard and issue to himself 19.7 million shares.
This is unbelievable. 4.7 million shares of SBAT for 100k
of RHGP which last traded @.65 AND 15 million for "right to acquire Twenty-Five percent (25%) of all net equity received by Viking from its potential future Chinese Clients".
He issued himself shares for nothing. What a pathetic loser.
I am out."

I'm maintaining my full position in SBAT. Based on some information disclosed in the 8-k filing and some "behind the scenes" things I have noticed in the last 1-2 months or so, I have a hunch/belief there will be opportunities to sell some shares at higher prices in 2010 or beyond.

From an initial fundamental perspective these transactions and new business implementation do not look attractive. From a retail investor standpoint I would have preferred to see a RM transaction with a single operating Chinese client/company.

The success/failure of SBAT now as an investment will probably largely depend on its operational expenses going forward and exactly how many shares it will need to issue for future equity acquisitions from Viking. The two transactions described above have taken SBAT from shell status to an operating business status (consultant). The original retail investors now have a 4-5% position in the new business, which in line with the kind of percentages you usually see in reverse merger types of situations. Again, future dilution and accompanying assets/value will likely decide SBAT's fate from this point forward.

Regarding the reason why I am keeping my position.....

1) In the last month or so Viking Investments has been advertising for positions at its Shanghai office (a business development manager and three financial analysts)......

http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://www.examda.net/Html/Company/28025.html&ei=lR4rS4uwOsjZnAeUzfX4CA&sa=X&oi=translate&ct=result&resnum=1&ved=0CAgQ7gEwAA&prev=/search%3Fq%3D%2522viking%2Binvestments%2522%26hl%3Den%26lr%3Dlang_zh-CN%26num%3D100

2) As I mentioned above there is a very interesting bit of information disclosed in the 8-k filing which has gone largely unnoticed, but which has potentially huge positive implications for SBAT. Philip Wan has been named a Vice President and Director of SBAT. Wan is extremely well-connected and well-respected (he was on the same panel with Crocker Coulson at this year's DealFlow Media PIPEs conference). The warrants Wan received are priced at 26 cents. For SBAT to attract someone of Wan's caliber into an officer position is a bit of an eyebrow-raiser and that coupled with the timing of the employee hiring undergoing at Viking Investments suggests there may be some things of significance occurring behind the scenes.......

Philip Wan. Prior to joining SinoCubate, Mr. Wan was with Linkasia Lawyers based in Shanghai China from 2001 where he became a partner in 2002. LinkAsia is a Chinese law firm with more than 120 lawyers and 30 partners in Shanghai, Beijing and Shenzhen. Over the last decade, Mr. Wan has been practicing law and providing consulting services to international clients and diverse investment projects. These projects have mostly involved cross board investments that pertained to telecommunications, power plants, civic infrastructure, energy and natural resource industries and green-tech projects. Through his professional career and successful representations, Mr. Wan assisted many of his clients to complete their investment and business transactions, and protected their best interests in China and Asia. Prior to Linkasia Lawyers, Mr. Wan was a legal counsel for 6 years in early 1990’s at Emerson Network Power and Schneider Electrical Investment China. In the year 2004-2008, Mr. Wan served as the China CEO of Linkasia Capital LLP, and managed diverse funds in China and Asia worth 2 billion US dollars, including private equity funds, mutual funds, and venture capital funds. Some of the significant investment projects that he participated in include, joint venture (Merlin-Gerlin Electronics Tianjin, Schneider China Investment), business formation and outsourcing (Libert-Emerson Network, Saha International), venture capital investment (Shanghai Tourism Web), private equity investment (China AME fund), M&A (Vivax Asia), Corporate restructuring (Shanghai GSY). Mr. Wan also extensive experience from Chinese privately owned companies with their foreign IPO listing endeavors on OTCBB and NASDAQ (US listings), ASE (Australian listings), and AIM (United Kingdom listings). Mr. Wan is a director of China M&A Association, and a director of the Climate Change Committee of China New Chamber of Commerce. He served as the China legal counsel for Standard & Poor’s Vista Research in 2007-2008. He is also a frequent speaker at several international conferences including the International Bar Association, Asia Pacific Law Society and SNP’s Vista Society of Industrial Leaders.