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Re: 032798 post# 159

Thursday, 03/25/2010 2:15:53 AM

Thursday, March 25, 2010 2:15:53 AM

Post# of 696
032798...CCKH/RCYT comparison......

"You could look at this stock for a comparison: RCYT. BP acquired over 97% of the stock a few months ago. Leaving approx 1.1M in the float. What is similar is the trading aspect b4 BP showed up on the scene. This is one of the worst non-r/s one's I've seen. Hopefully not the case here."

I think it may be a little difficult to use RCYT as a comparison stock. As I mentioned in a previous post Belmont Partners doesn't appear to use a strict "cookie cutter" kind of approach on the structuring of its deals, so the ultimate structure of the RM deals can vary quite a bit. Also, if I am correct in assuming a profitable China biotech/pharma is being vended into the CCKH shell, RCYT (housing design/manufacture) and CCKH (China biotech/pharma) will obviously have starkly different operating businesses which might influence general market/investor appeal. My hunch is that CCKH's RM business is probably going to be significantly more attractive on both a financial/fundamental and overall appeal basis.

However, if you do attempt to make a general comparison of the two stocks/situations I think it somewhat highlights how the CCKH shell is relatively attractive on a fundamental basis......

1) Rough market cap of the shells prior to Belmont purchasing control:

RCYT: $2.4M
CCKH: $700k

2) Rough market cap of the shells after Belmont purchased control, and prior to any additional transactions:

RCYT: $5-7M
CCKH: $700k

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