I do not know the extent of China's good stories.
From my standpoint it looks like the company was hurt by the "faux" brands and the fact that the FDA wouldn't allow any imports into the US.
They might have not had all the candy and roses that they were showing until now. The FDA was recently forced to lift their ban on imports that contain nicotine, and the patent is real now. Which might have not been the case 6 mo. ago.
AND IMO When they got that bid from PM, they realized what they really had. One last chance to give it to their "countrymen" before the plane leaves. If they are fighting for their patent they cannot play games anymore. I'm not sure how communist countries work, but they sure do act like capitalists LOL.
They diluted that whole friggin thing right under everyone's nose. But what happens if you complain in China?????? I know. Its not pretty.
The good part is they have no choice but to do it again, because there's too much demand and they can tap the US with that patent now. If you read the interim earnings statement I think you'll see that they are actually selling this as a secured bond with a price of 4.00 HK in May 2011. At least that's what I think I am reading, like I said I could be dead wrong.
But if I'm right then they are raising some MAJOR local capital for the next run to the top. I'm a fan of e-cigs for personal reasons. I just want to see one of these companies succeed for their shareholders and not for their own personal gains. RUYAN/DRAGONITE is soon to be in the spotlight. Only time will tell where they put the money.
As always, these are only my incessant ramblings. Please only take them for what they are
Good Luck to you and GO 329:HK
