Replies to post #490 on China Medicine Corporation (CHME)

[bradford86]

looking to add as we go lower, thus going lower is good for me.

[onehotplayer]

It depends on how you interpret its "penalty" formula in SEC filing. ratobranco tried to calculate it a while ago but I think the dilution could range from not much to substantial. If anyone could clarify this I would like to know the answer also because it increasingly looks like it may not meet the EBITDA target due to no revenue but expense from radtz and not much or no growth from its other businesses in 2010.

If you talk about the maximum penalty( worst case) scenario. i.e. OEP increases its ownership up to 75% for free then the dilution could be very substaintial. But it is the worst case. Let's hope if they miss it then they miss it not much.