Value Microcaps Zip Code Changers

[Potse]

Guy...SBAT......

"Not exactly. After the issuance of the 19.7m shares, Viking owns 20.3m of the total 20.7m outstanding shares which is approx 98%, so the retail investors own 2%."

Sorry, I meant to say that the original shell owners (comprised of both Viking and retail investors) own about 4-5% of the new company.

"The mere fact that the CEO issued
to himself 4.7 million shares for 100k shares of
RHGP, should be enough reason to get out.
The RHGP shares are worth $65k now. 4.7 million shares
of SBAT for RHGP, assign a value of $0.014 per SBAT share.

I can go on about the other 15 million shares he gave
himself for nothing and the fact that they will need to
dilute further, but the first example is enough."

I agree that from a purely fundamental perspective I don't like the two transactions (particularly the RHGP deal). However, I am also willing to acknowledge there may be reasons for these moves that might not be entirely evident/understood at this point in time.

The RHGP transaction may or may not be indicative of what future deals will look like. Perhaps the future equity acquisitions by SBAT will be done on terms decidely favorable to SBAT. Perhaps the RHGP deal has something to do with Viking's intentions of providing financial support for SBAT during its development stage. Perhaps this is just some type of precursor move to an eventual acquisition of Viking. It is difficult to say at this point.

The transactions certainly raise some concern in my mind, but I'm also a bit intrigued by some of the things here......

1) Viking has been advertising for employees in China. CEO Tom Simeo was in China during November visiting a company/client that has been attracting interest from other Asian and United States investors......

http://translate.google.com/translate?hl=en&sl=zh-CN&u=http://hb.ce.cn/news/2009-11/23/143817.htm&ei=qhwpS6iiNpOKnQeIzcylDQ&sa=X&oi=translate&ct=result&resnum=1&ved=0CAgQ7gEwAA&prev=/search%3Fq%3D%2522tom%2Bsimeo%2522%26hl%3Den%26lr%3Dlang_zh-CN%26num%3D100

2) Appointment of two officers who have extensive experience with the financial aspects of Asian businesses and listing procedures.

3) Two independent directors will be appointed shortly.

4) While the 8-k filing describes SBAT's new business as being a "consultant", the language in the actual partnership agreement suggests that SBAT may be looking to forge a fairly in-depth relationship with some clients. And that makes the management appointments that SBAT has disclosed all the more interesting, IMO.....

SINOCUBATE desires to become a Chinese business incubator focused on businesses in the PRC

http://knobias.10kwizard.com/filing.php?param=&ipage=6660825&DSEQ=2&SEQ=&SQDESC=SECTION_EXHIBIT&exp=

4) SBAT currently has a float of less than 400k. Low-float situations like this can have some wild moves, regardless of whether they may have a fundamental basis. For example, if it turns out that SBAT in some way becomes involved in some very high profile reverse mergers or IPOs as a result of Philip Wan's employment at SBAT, things could get a little interesting.