China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[StevenRisk]

I like the fact that they are starting to focus on higher growth lines with good margins.

In the last year they have pretty much discontinued packaged foods and now possibly raw and intermediate products. This alone with the fact that sales are up nicely at 45% this year is amazing.

They are not growing sales with no regard to margins and the true potential growth.

My only disappointment with the company is lack of info.

They now have cigs, beverages, and feed growing rapid with neutriceuticals(SP) possibly hitting a headwind but still very profitible.

CKGT.OB is undoubtedly one of the most undervalued stocks bar none and that includes CCME which I believe is an easy double within 6 months.

With sales down from Q1 on a percentage basis and the fact that they have a much better distribution of product reaching more consumers I strongly believe we will see 50% plus growth this year.

I believe sales will come in something like this 1)cigs $3.8 MIl
2)neutriceuticals $11.2 3)beverages $14.0 Mil 4)raw and intermediate $2.5 Mil 5) cactus feed $5.5 MIl

Note: this is in line with managements $35Mil in sales and very conservative with regards to all categories. I pretty much wrote off raw and intermediate as a discontinued product line. However, they are so tight-lipped you never know!