Replies to post #8319 on Redwood Group International (RDWD)

[The Rainmaker]

The most valuable asset SIVC has is their people in China. If you ask yourself what does SIVC/Redwood have that makes them so valuable.

For me it's the people they have in place in China. 12 plus people working in China on Redwoods Reverse merger deals. It took SIVC years to put together this staff. These people have developed the know-how and contacts to find deals and an understanding of the type of Chinese companies that are best suited for a reverse merger into the US markets.

It also shows me we have a real company that needs real people to handle the increasing workload that comes with a pipeline chock full of China deals.

Todays PR was an expansion of this principle. Loyal, happy, hard working employees. It's these people working for Redwood that give them a competitive edge. It's these people that attracted Hunter Wise and Kensington Cross.

Hunter Wise Opens China Office
Posted February 13, 2008 6:00PM

Irvine, Calif.-based placement agent Hunter Wise Financial Group said Jan. 29 that it opened an office in Beijing.

Daniel McClory, managing director of Hunter Wise, spoke to DealFlow Media from his Southern California location about the investment bank's plans to increase its activity in the PIPE market in 2008.

McClory said Hunter has been involved in about a dozen PIPEs in the past five years, most of them smaller deals. PrivateRaise, which only records transactions of $1 million or more, has tracked the firm as a placement agent in four PIPEs for a total of $32.2 million arranged.

But in 2008, McClory says that Hunter will increase its activity with a focus on China. The deal the firm closed on New Year's Eve, McClory said, will be more indicative of the types of transactions Hunter was be involved in going forward: it was a $17 million private placement concurrent to a reverse merger for a Chinese pork producer. Hunter received a fee of $1.19 million, for 7% of the issuance amount, and $600,000 for reimbursement of expenses, according to filings made in the transaction closing.

McClory said that Hunter is currently looking at another half a dozen Chinese reverse mergers with PIPEs in the $30 million to $50 million range. He recommends this structure over reverse mergers without PIPEs, where a company goes public and hopes for capital later.

To eliminate trouble sifting out which companies are best suited for public offerings and private placements, Hunter has partnered with Redwood Capital, which has 12 people in China to originate transactions, according to McClory.


Kensington Cross recently named a new representative in its Beijing, China office. The new representative has begun working with Redwood Capital Managing Director Charlie Wu on deal flow and identifying appropriate candidates for private equity transactions.

Frederick S. Gnesin, Managing Director of Kensington Cross, stated, "Our presence in Beijing is now completed with the S3 partnership. This strategic alliance will augment Kensington's capability to address the needs of middle to large market-cap companies seeking substantial private investment capital infusion and exposure to the United States capital markets."

Jim Bickel, chairman and chief executive officer of S3 Investment Company, stated, “Kensington Cross approached Redwood Capital with a number of select private equity deals after having completed an exhaustive due diligence process. That alone generated an internal interest within Redwood to create the alliance between the firms, and we look forward to working with Kensington Cross on the potential deals that they bring.” “Although Redwood’s primary focus will remain the China market, we will entertain transactions involving companies in additional worldwide markets as appropriate,” Mr. Bickel
added.

[The Rainmaker]

Two types of press releases a company can issue....

These are similar to the two types of evidence presented in a court room during a trial.

Type 1) The smoking gun.... this evidence proves someones guilt or innocence beyond a reasonable doubt. Could be a fingerprint on the murder weapon, a credible eye witness, a video taped confession etc.

Type 2) One piece of a larger puzzle that paints a picture of what happened and what could happen. The judge or jury assembles and weighs these pieces of evidence and comes up with a verdict based on a preponderance of evidence.

Smoking gun PR's Deal with Walmart, buy out, large contracts, partnerships with Fortune 500 companies are some examples.

SIVC PR's are more type 2, each piece is another part of the puzzle. Based on a preponderance of evidence presented to us as investors SIVC seems to be wildly undervalued.

The best thing about this is it keeps the flippers away from SIVC. Gives us a more stable stock price with great support.
Slowly rising in value consistently since January.

The only smoking gun PR's we could see from SIVC would be
buyout for 30 cents a share, Hunter Wise or Kensington Cross buying a 20% stake in SIVC for 20 million dollars.

Every PR you seem dissapointed that you didn't get that smoking gun PR to make SIVC stock price go kaboom.

Here's an interesting article I found
Titled....Trying to see the forest through the trees - Welcome to Macroeconomics!

Ateacher of mine once explained the difference between micro and macro using the example of a tree and a forest. Microeconomics is the like the study of an individual tree, standing in a thick forest of thousands of individual trees of different species. A microeconomist might study the systems that make an individual tree function efficiently, providing it with the sustanence it needs to thrive in the forest. A macroeconomist, however, will take a broader look at the forest as a whole, and observe how the thousands of trees work together in conjunction with the sun, the soil, the oxygen, nitrogen, and H2O in the environment that make the entire forest function efficiently as one giant organism.

Put literally, the tree is like an individual market. This may be a product market like the market for apples, or a resource market like the market for apple pickers. Microeconomists will study the characteristics of an individual market: the firms and their costs, tradeoffs, challenges presented by competition or the inefficiencies that result from a lack thereof, and the buyers in the market: the alternatives and trade-offs they face, the utility they receive and the decisions they make based on these factors. Microeconomics concerns itself not with the health of the economy as a whole, rather with the individual markets, firms, and consumers within the economy, and the challenges of efficiency and resource allocation faced by those markets.

Macroeconomics, on the other hand, studies the health of the economy as a whole. Macro deals with aggregates, or “collections of specific economic units treated as if they were one. ” For example, instead of studying price of a product, as a microeconomist would, a macroeconomist looks at the price level in the whole economy. Whereas a microeconomist looks at supply and demand in a particular market, a macroeconomist studies aggregate supply and aggregate demand, assessing the collective marginal benefit of all consumers and marginal costs of all producers. Instead of quantity supplied, the macroeconomist examines aggregate output, or gross domestic product. Instead of underallocation and overallocation of resources, the macroeconomists concerns himself with unemployment and inflation.


My point is try and stay focused on the bigger long term picture with SIVC. That's where the true feel good part of this story is coming from. Ultimately that's what will take SIVC share price much higher imho.