Replies to post #2365 on China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[Florinda]

We'll see how it plays out. My guess is that they'll put their plans to expand into the US on hold and concentrate on growing the business elsewhere. If "clover" has been deemed bad to inhale, then cactus and the other non-tabacco substances CKGT uses in the cigs might not fly either.

At any event, I'd rather err on the conservative side and assume that CKGT's cigs might not make it into the US. If their cigs can help people break the nicotine habit then I suspect they'll be a huge market for them without having to penetrate the US market. Or, to put it differently, until management itself throws us a bone, I'll assume the purported idea of expanding cig sales into the US is, like the skin care products, on the back burner. If the company can keep doing what they've been doing, minus, that is, their poor PR efforts, I suspect most of us will be pretty pleased with the results.

But first, earnings.

Steve

[pegasus1]

I would bet they're going to need FDA approval and the samples shouldn't have been distributed. Even if the cigarettes with 'no nicotine' are marketed, who's to say there aren't other dangerous chemicals in them? Not to mention the recent issues with other products from China (lead containing toys, toxic baby milk). I don't think the FDA will allow ingesting anything into the body that hasn't been tested. I could be wrong though.

Even if they begin to market them, I would bet anti-smoking or other groups would launch concerns and force the products to be tested. You never know what kind of chemical reactions take place when ignited. Cactus could be perfectly fine until it's burned. But again, I'm just being devil's advocate.

I still hold this stock and would love to see them market their products globally. But where the cigs are concerned, I see potential for problems with regulation, at least in the US.