db7...China consultant, job advertisements.....
"wow, lot's of possible sellers here? - "Dionics, Inc. (OTCBB:DION), a semiconductor/micro-electronics manufacturer known for its high-reliability PV (photo-voltaic) MOSFET-Drivers, today issued its Nine-Month and Q-3 reports for 2010 showing advancing sales volume over last year. Losses, however, widened as the company's program for increasing its sales in the large potential Chinese market-place required it to make a significant non-cash stock-compensation payment of 900,000 shares to its new Chinese consultants" "
I'm not anticipating any significant selling from the China consultant firm anytime soon. Based on the CEO's comments on the firm in recent press releases, and the fact that the firm was picked by CML (Roy Teng), I think the consultant firm is probably taking a "long-term" kind of perspective on DION.
That 11/3/2010 press release DION issued is quite interesting, IMO (particularly the parts referencing power-distribution applications and the consultant screening several merger/acquisition candidates). My eyebrow raised a little when I saw that, on the same day the PR came out, the consulting firm started placing DION job advertisements in China. The last ad that I was able to find was placed about two weeks ago and had a deadline of 11/26/2010.
The number of people they are looking to hire for a specific job requirement (financial audits/reports) seems unusually high, given DION's current level of business in China. Clearly, something is going on in the China market side of DION that is causing the consulting firm to look for 5 people who have experience with internal financial audits and preparation of financial reports/filings.
I am fully expecting to see some type of merger/acquisition activity within the next 12 months or so. Because of the relatively "tiny" size of DION right now, it is probably logical to believe that any M&A would potentially dramatically increase the size of the company. And perhaps in some respects any M&A activity might be viewed as somewhat of a reverse merger type of situation.
Although I am expecting to see CML (or perhaps associated individuals/institutions) inject additional cash into DION soon, the company currently has a market cap around $3M, and tradeable float under 5M shares. Some of the more popular shells currently on IHUB are selling for multiples of that valuation, with significantly larger floats.
