Replies to post #5391 on China Growth Stocks

[10 bagger]

LHSI.. Added again.. Value Play..

10/19/09 9:47 AM EDT Buy 888 LHSI Executed @ $1.6 Details | Edit
10/19/09 9:47 AM EDT Buy 3000 LHSI Executed @ $1.6 Details | Edit

OTCBB LHSI Completes Name Change to China Pediatric Pharmaceuticals, Inc.

Business Wire - Oct 15 at 20:49

Company Symbols: NASDAQ-OTCBB:LHSI


XI'AN, China--(BUSINESS WIRE)-- Lid Hair Studios International, Inc. (OTC Bulletin Board: LHSI) ("Lid Hair Studios" or the "Company"), today announced that effective on October 9, 2009, the Company changed its name from Lid Hair Studios International Inc. to China Pediatric Pharamaceuticals, Inc. The name change was effected through a parent/subsidiary merger of our wholly-owned subsidiary, China Pediatric Pharmaceuticals, Inc., with and into the Company, with the Company as the surviving corporation. To effectuate the merger, the Company filed its Articles of Merger with the Nevada Secretary of State and the merger became effective on October 9, 2009.

The Company's board of directors approved the merger which resulted in the name change on October 9, 2009. In accordance with Section 92A.180 of the Nevada Revised Statutes, shareholder approval of the merger was not required. On the effective date of the merger, the Company's name was changed to "China Pediatric Pharmaceuticals, Inc." and the Company's Articles of Incorporation were amended to reflect this name change.

Following the Combination, the combined Company will continue to be traded on the OTCBB, under the symbol "LHSI", however we will request a new symbol closer in form to China Pediatric Pharmaceuticals, Inc.

"We are very pleased to announce the name change that better reflects the company's business. This brings our closer to our goal to get our message out to the investing public," said Mr. Xia, CEO and Chairman of China Pediatric Pharmaceuticals, Inc.

About China Pediatric Pharmaceuticals, Inc.

China Pediatric Pharmaceuticals, Inc. has its headquarters in Xi'an, Shaanxi Province, China. The Company identifies, discovers, develops manufactures and distributes both prescription and over-the counter, including both conventional and Traditional Chinese Medicines ("TCMs"), pharmaceutical products for the treatment of some of the most common ailments and diseases, with pediatric medicine as its focus. Lid Hair Studios International, Inc.'s manufacturing facility located in Baoji City, Shaanxi Province. The Company distributes its high value, branded medicines, both prescription and OTC, through exclusive territory agents who sell our products directly to local pharmacies who in turn sell them to their retail customers. For the six months ended June 30, 2009, Revenue was $7,142,775 and Net Income was $1,585,799 or $0.19 per share. As at June 30, 2009, Shareholders' Equity was $10,608,005 and Total Assets were $13,569,343. For more information go to: www.jialipharma.com

For more information, please contact:

China Pediatric Pharmaceuticals, Inc.

Mr. Jun Xia, Chief Executive Officer

Mr. Minggang Xiao, Chief Financial Officer

Ms. Vivian Juan Wei, Vice President, Corporate Affairs

9th Floor, No. 29 Nanxin Street,

Xi'an, Shaanxi Province

P.R.C., 710004

Phone: [phone]

Email: [e-mail]

Website: www.jialipharma.com

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the company's ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Source: China Pediatric Pharmaceuticals, Inc.

[2morrowsGains]

LHSI...Could be a nice Chinese sleeper. The name of the company and symbol has not yet been changed to reflect the R/M so you have to look at the recent 8k filing to get the skinny.
Last year Shaanxi Jiali Pharmaceuticals had a 25% increase in net income in the 2nd half of the year over the first half. (China pharma sales tend to be stronger in the 2nd half of the year). They had EPS of $0.19 in the first half of this year., so if they can crack out another 25% HoH increase, we'd be looking at approx $0.24 in the 2nd half of this year, or $0.43 EPS for FY2009. Based on todays stock price of $1.75, that would equal a PE of 4.
So I'm thinking when they finalize the name and symbol change, LHSI could get some attention, especially if the stock price is still below $2. And it's nice to see that they are already looking to uplist from here...

"Our next goal will be to seek a listing on a senior stock exchange in the United States."

More from the 8k...

As of September 30, 2009, an aggregate of 8,228571 shares of Common Stock were outstanding, including shares issued pursuant to the Closing.

LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2009, we had cash and cash equivalents of approximately $1.2 million. We believe our existing cash and cash equivalents will be sufficient to maintain our operations at present level for at least the next twelve months. We plan to review acquisition opportunities as a strategy for further growth.
Total liabilities approx $3M.
http://sec.gov/Archives/edgar/data/1354071/000112785509000447/lidhair8ka100609.htm

[Potse]

LHSI...possible problem with this merger.....

I'm not 100% certain about this, but after extensively reviewing the last few filings by LHSI it is my belief that the company and/or consultant have made an extremely serious mistake on this merger.

As far as I have been able to figure out, I believe that LHSI's common stock was supposed to have undergone a 2:7 reverse split prior to the issuance of shares to the Chinese merger candidate. Unless I am completely mistaken, that reverse split never occurred.

According to both the press releases and the filings, there are supposed to be roughly 8.2M shares outstanding after the closing of the merger, which according to the filings occurred at the end of September. But after looking at the merger agreement closer, the only way that 8.2M number can be achieved is if a 2:7 reverse split occurred prior to the shares being issued to the Chinese company. Here are the 3 steps this merger was supposed to have taken.....

1) The shell had 9.3M shares. The CEO sold 5M, which were then cancelled. That left the shell with 4.3M shares.

2) Those 4.3M shares undergo a 2:7 reverse split. That leaves the shell with 1.2M shares.

3) The Chinese company is issued 7M new shares to complete the merger. That leaves a grand total of 8.2M shares post merger.

Notice what appears at the beginning of the 10Q filed on October 15. If the merger closed at the end of September, then the outstanding share count two weeks later should be 8.2M and not the 4.3M that the company reports....

The number of shares outstanding of the registrant's Class A common stock as of October 12, 2009 was 4,300,000.