News Focus
News Focus
icon url

Tin-Berrygood

08/15/07 7:19 PM

#80557 RE: tempaussie #80555

Very much the positive points covered by Dr. Hu at the meeting..The US listing is valuable since the amount of companies allowed to be listed from China has decreased due to the government intervention..(per the meeting info)

Aloha
icon url

Investorman

08/15/07 7:34 PM

#80558 RE: tempaussie #80555

LOL - You ask tough questions and I don't have definitive answers for any of them - only possibilities. We are going to have to wait for the 10q to get a real look at what they are doing. The problem with trying to read between the lines is that people have a tendency to fill in with what they would like to see rather than what is the most probable answer.

My tea leaves tell me that they are working on the acquisition of the two subs and there is no merger with ZDSoft. Of course if ZDSoft gets more than 50% of HRCT's OS then technically HRCT is a sub of ZDSoft. It will all depend on what ZDSoft feels like doing...... they are in control.

On this note - with 451 million shares going out to ZDSoft and even more shares going to "new equity investors," the current shareholders will see the value of their shares plummet. The value of the company may increase but the pie is being divided into many more hands.

Another question too since you are open to answering: when people say a company wants to associate with a listed company to "get access to the American capital market", what does that mean?

It is just usually easier and cheaper to merge with a currently listed company than to apply for a new listing. The "American capital market" they want to get to is you and me and anyone else in the US that they can get to buy the shares. It is easier to sell additional shares in a publicly listed company than it is to come up with foreign capital from other sources.