032798....ACTN/CCKH comparison.....
"Here is another Belmont Parnters comparison stock to CCKH to look at: ACTN, like CCKH, is a trading stock b4 agreement. They originally were planing on a 1 for 35 r/s in a pre14 over a year ago. Then it looks like it was dropped. Now they are planning on a 1 for 125 r/s. Looks like they are doing a deal with a chinese company just like CCKH might be. I feel there may be comparison to CCKH. Some my not think so. Time will be the revealer with this CCKH. But my gut still says the outcome will not be as good as hoped for current long term CCKH shareholders. I hope I am way off base here."
I am assuming that you probably took just a somewhat cursory glance at the ACTN shell/situation, saw the 1:125 reverse split, and thought that would be sufficient to help assist in reinforcing your viewpoint on CCKH.
Two points: 1) An analysis of the two shells, IMO, shows that once again CCKH compares quite favorably on a fundamental basis. 2) I realize that people have a tendency to competely freak out when they see the words "reverse split", but not all reverse splits are automatically bad.
Shell comparison: From an overall perspective, it appears to me that CCKH is/was a much cleaner shell. ACTN had some convertible debt on its books, and the share count increased by 7M just in the last three months (currently at 18.75M). Belmont/Meuse did not purchase any shares of the ACTN shell, and only took a financial interest in the stock around 3/25 when he acquired some convertible preferred stock.
Rough market cap of the shells when Meuse took a financial interest:
ACTN: $1.3M
CCKH: $700k
Regarding the ACTN reverse split: On the negative side, the retail shareholders will retain about 1.5% of the China RM (which is probably lower than I would like to see). On the positive side, this is probably a China RM that will be trading on a major exchange at some point.
Although there hasn't been any revenue/income/asset numbers released in the ACTN filings yet, it appears to me that this reverse merger is with a potentially massive company. The RM company is a steel wire producer which was formerly a subsidiary of a huge steel company. According to the SC 14F1, 2008 was the last year that the RM company purchased raw material from its former parent ($488M worth of raw material). Also, interesting to note that the RM company had made a $42 million loan to the parent, and it was repaid in the last 3 months. The CEO of the RM company (and the Chairman of the former parent) is extremely wealthy. His net worth just from his steel holdings around 2008-2009 was $430M.
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