1) China Dongsheng (OTCPK:CDSG) has acquired a ginseng plantation in Jilin Province that has been growing approx. 18.8 million ginseng plants since 2004. The company estimates that the current market price for 8 year-old ginseng is $7 per plant, which means the total crop on this property will be worth a whopping $132 million in 4 years. Given that the company's LTM revenue was $31.3 million, do you realize this translates into a very impressive top line CAGR of 43.3%, compared to its almost 0% growth between 2006 and 2007?
2) Poor China Medicine Corp (OTCPK:CHME). Its shares have been languishing at or above the $2 mark all of last week, very close to its 52-week low of $1.90 achieved in January this year. It has been almost three months since CCG came on board as their IR, and how many press releases have we seen? Zero. The fact is that a lot has been happening, including a secondary offering and, very recently, the company attending the Roth Conference in OC. But why the radio silence? Why hasn't CHME filed its Roth presentation with the SEC? And is Crocker Coulson going to do something about it?
3) China Solar (OTCPK:CSOL) announced that it has raised $11 million in a PIPE deal, issuing 4.7 million shares at a price of $2.40. This is a great transaction for the company. The number of shares issued amounted to a 43% dilution and yet the discount to the last closing price was only 10.8%. I suspect this has a lot to do with the excellent outlook the company is projecting for its business, for which certain data was made known during the recent Roth Capital Conference. Did you know that CSOL is projecting a 66.7% bottom line growth between 2008 and 2009, with a fully-diluted FY2009 EPS of $0.39?
My Position: None.