Value Microcaps Zip Code Changers

[Potse]

db7..RNPR(.085)...undervalued RM model.....

12M shares outstanding
$1M market cap
.43/shr trailing 12-month earnings
.2 PE

There will probably be some nice shorter-term trading opportunities in the stock from around this 10-cent area. But on a hunch I am probably going to hang on to those 6-cent shares and see if I can get at least a 10/20-bagger.

It does appear that the CEO has initially structured this as an undervalued RM. So there does exist the potential for significant upside, depending on general and China-stock market conditions. Below is something I posted on the CDBH message board last year regarding my definition of "fully-valued" and "undervalued" reverse merger models......

If I recall correctly, about 2-3 years ago China put in place a policy that was suppose to prohibit "under-valued" RM transactions. For example, if a Chinese RM candidate was evaluated as being worth $10M then in order to complete a reverse merger that Chinese company would need to receive basically $10M worth of shell shares. You would not be allowed to give the Chinese company a small number of shares worth say $1M and then let the market "naturally" correct the share price/valuation up to the $10M level.

The "under-valued" RM models are where you get the really nice 20 cent to $5 overnight types of moves. I think LNDT and SVPE are probably two good recent examples of that. Obviously that policy has been changed or the Chinese government is no longer rigidly enforcing it because I have been seeing a number of these types of deals.

I don't know whether an English website exists for the company yet, but here is the Chinese site. I haven't had any luck in getting a translated version of the entire website to function properly, so any translation of material on the site needs to be done manually (cut-and-paste into a translator)......

http://www.ccdfz.com.cn/