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Re: newmedman post# 43

Sunday, 01/09/2011 4:51:17 PM

Sunday, January 09, 2011 4:51:17 PM

Post# of 1606
Right on bro, glad to hear you got into SFIO at a decent price point; all of the pumpers on that board kept trumpeting to 'hit the ask, hit the ask' but they just wanted short term gain that they could capitalize on and dump shares at higher pps. It actually makes more sense to bid lower that the current pps and if there truly is demand out there for the shares (the pps will rise naturally and will force you to up your bid) but if there is no demand for the shares the pps will drop and your lower bid will finally get filled on the cheap, its a much better way to buy, not to mention your idea of staging your entry.. come in a little at a time is the way to go. good going!
Dragonite is a little known story about a HUGE player in this emerging ecig industry. The FDA ruling was great for ALL ecig companies, including start ups like SFIO, however for Dragonite it is simply HUGE because they are the only ecig company already in business all over the world with their own supply chain, from materials to manufacturing, to marketing and distribution, the own every link in the chain because they are an investment holding company which over the years since 2001 has been acquiring all the companies involved at every stage of ecig production and consumer sales. And with owning the only US patent for the ecig, not only are they going to come plowing into the US market very very soon, but they will also legally attack other ecig companies in the USA on patent infringement. I have a feeling in a year or two this ecig company will be really the only ecig company left standing.
Part of all of the chatter around what has happened with Ruyan/Dragonite in the last month or two is that in 2009 and beginning of 2010 the debt and faux brands were suppressing their earnings but from what I hear over the wire from China mainland investors is that some private group bought all the companys' debt and so the company during Nov and Dec halted trading to do the capital restructure and now opening trading up again from Jan 12 to 19 only giving the private equity group a window to buy up common share into the company, before finalizing the capital restructure then either late Jan or early Feb, this stock will be at whatever price is stays at for a long time after all the new money has poured into it (almost like an IPO). I think that after the peoples republic of China ruled against faux brands and gave Ruyan/Dragonite absolute patent and branding power for their ecig, investor groups got together and started buying heavily into this company then days before they halted trading the stock shot up on the hong kong exchange nearly 60% in one day and the company took notice that previous investors who had bought their debt were now buying shares in the millions so they halted trading and did the capital reorg.
In my opinion, this is basically as huge as when BIDU was first coming out in the overseas market as an IPO, ready to be publicly traded. It was a Billion dollar company that in days had its market cap grow to tens of billions and then after years of being on the big exchange is now up huge huge huge. Its those little known overseas IPO plays that can make investors boat loads so yes Im definitely going to be snapping up shares Wed morning, cheers.
Its true, waiting around forever on SFIO start up to get earnings going could take literally years, best to put most investment capital into companies leading the industry and already making huge sales.
Below are some other links I found on Ruyan and how they have in the past year or so been winning patent legal battles in China and other countries. This company is serious and I think will be THE worldwide ecig brand in the new industry. Rumor is they already last year got talks with Philip Morris about a buyout but even though it was a huge premium to the stock price at the time, Ruyan didn't sell out because they knew the potential for future profits in coming years. I think we are witnessing the turn around story right now and it is amazing to me how when you look at the graph of HK 0329 in 2007, the stock was trading at $450/share!! because investors thought the time for ecigs was then but they got the timing wrong so hey simply dumped the shares over the next year or so and now it is trading at $0.50/share !! but Im sure they will all come flooding back in once they realize what has happened in the industry since then (USA patent plus FDA ruling plus capital reorg) and this company, they just got the timing wrong, but Im going to be getting in hard on Wed IF my brokerage can (its an overseas clearing house) so bid/ask may wind up being pretty choppy because once this thing starts going again I have a feeling all the 2007 investors will pump it all the way back up into the hundreds of dollars per share which could be gains of 800 fold or 80,000% !! LOL
good luck!

http://en.wikipedia.org/wiki/Ruyan

http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/02-23-2009/0004976920&EDATE=

http://www.wipo.int/pctdb/en/wo.jsp?IA=CN2004000182&wo=2004095955&DISPLAY=STATUS