Seriously, been in CHFI from .17 actually, just didnt have a large position and never recommended it to the board because I thought it was dead money.
My buy history:
10/16/2009 CHFI BOUGHT 2000 SHARES OF CHFI AT $0.513 ($12.13) $0.00 ($1,038.13)
10/16/2009 CHFI BOUGHT 2000 SHARES OF CHFI AT $0.55 ($12.50) $0.00 ($1,112.50)
10/16/2009 CHFI BOUGHT 2000 SHARES OF CHFI AT $0.43 ($11.30) $0.00 ($871.30)
9/8/2009 CHFI BOUGHT 2000 SHARES OF CHFI AT $0.172 ($8.72) $0.00 ($352.72)
8/19/2009 CHFI BOUGHT 1000 SHARES OF CHFI AT $0.20 ($8.00) $0.00 ($208.00)
8/18/2009 CHFI BOUGHT 3000 SHARES OF CHFI AT $0.215 ($10.23) $0.00 ($655.23)
7/22/2009 CHFI BOUGHT 1000 SHARES OF CHFI AT $0.17 ($7.85) $0.00 ($177.85)
7/14/2009 CHFI BOUGHT 1000 SHARES OF CHFI AT $0.171 ($7.86) $0.00 ($178.86)
6/19/2009 CHFI BOUGHT 4000 SHARES OF CHFI AT $0.215 ($11.30) $0.00 ($871.30)
5/26/2009 CHFI BOUGHT 2500 SHARES OF CHFI AT $0.21 ($9.63) $0.00 ($534.63)
5/11/2009 CHFI BOUGHT 2500 SHARES OF CHFI AT $0.30 ($10.75) $0.00 ($760.75)
Same with JADA:
10/19/2009 JADA BOUGHT 2000 SHARES OF JADA AT $0.332 ($10.32) $0.00 ($674.32)
10/19/2009 JADA BOUGHT 3000 SHARES OF JADA AT $0.31 ($11.65) $0.00 ($941.65)
10/19/2009 JADA BOUGHT 3000 SHARES OF JADA AT $0.2551 ($10.83) $0.00 ($776.13)
7/24/2009 JADA BOUGHT 3000 SHARES OF JADA AT $0.15 ($9.25) $0.00 ($459.25)
7/24/2009 JADA BOUGHT 600 SHARES OF JADA AT $0.16 ($7.48) $0.00 ($103.48)
7/24/2009 JADA BOUGHT 400 SHARES OF JADA AT $0.1628 ($7.33) $0.00 ($72.45)
7/13/2009 JADA BOUGHT 6000 SHARES OF JADA AT $0.19 ($12.70) $0.00 ($1,152.70)
6/4/2009 JADA BOUGHT 4000 SHARES OF JADA AT $0.25 ($12.00) $0.00 ($1,012.00)
I'm sure there will be other dips. There's always dips, it's the sign of healthy trading of a stock. today's was just overdone, I grabbed 2k at 1.11, 1k at 1.09 ... was about to sh!t my pants though because the next level of support after 1.06 was .93, thought I made a stupid mistake, but it paid off.
Just dont panic and buy. Wait for opportunities, profit-taking dips, or over-done sell-offs on no news (like today). She came back very strong today which makes me think we'll be back in the green tomorrow. Might be running out of steam though, tomorrow will tell the story.
check the sell thread we in the process of topping out on the overall equity market now IMO...might drag on for a few more weeks and push a bit higher i dunno....probably won't be major pain till 2nd half of 2010 when flood gates probably open again to downside in big way...
Niall Ferguson: U.S. Empire in Decline, on Collision Course with China
http://finance.yahoo.com/tech-ticker/article/357319/Niall-Ferguson-U.S.-Empire-in-Decline-on-Collision-Course-with-China?tickers=FXI,PGJ,%5EGSPC,%5Edji,SPY,LMT,RTN&sec=topStories&pos=9&asset=&ccode=
Posted Oct 20, 2009 07:30am EDT by Aaron Task in Newsmakers
The U.S. is an empire in decline, according to Niall Ferguson, Harvard professor and author of The Ascent of Money.
"People have predicted the end of America in the past and been wrong," Ferguson concedes. "But let's face it: If you're trying to borrow $9 trillion to save your financial system...and already half your public debt held by foreigners, it's not really the conduct of rising empires, is it?"
Given its massive deficits and overseas military adventures, America today is similar to the Spanish Empire in the 17th century and Britain's in the 20th, he says. "Excessive debt is usually a predictor of subsequent trouble."
Putting a finer point on it, Ferguson says America today is comparable to Britain circa 1900: a dominant empire underestimating the rise of a new power. In Britain's case back then it was Germany; in America's case today, it's China.
"When China's economy is equal in size to that of the U.S., which could come as early as 2027...it means China becomes not only a major economic competitor - it's that already, it then becomes a diplomatic competitor and a military competitor," the history professor declares.
The most obvious sign of this is China's major naval construction program, featuring next generation submarines and up to three aircraft carriers, Ferguson says. "There's no other way of interpreting this than as a challenge to the hegemony of the U.S. in the Asia-Pacific region."
As to analysts like Stratfor's George Friedman, who downplay China's naval ambitions, Ferguson notes British experts - including Winston Churchill - were similarly complacent about Germany at the dawn of the 20th century.
"I'm not predicting World War III but we have to recognize...China is becoming more assertive, a rival not a partner," he says, adding that China's navy doesn't have to be as large as America's to pose a problem. "They don't have to have an equally large navy, just big enough to pose a strategic threat [and] cause trouble" for the U.S. Navy.
--pick your side. The over-bought, over-inflated bubble that is the US stock market ... or CHINA. I've already picked my side, I hope you choose wisely.
http://finance.yahoo.com/tech-ticker/article/357319/Niall-Ferguson-U.S.-Empire-in-Decline-on-Collision-Course-with-China?tickers=FXI,PGJ,%5EGSPC,%5Edji,SPY,LMT,RTN&sec=topStories&pos=9&asset=&ccode=
Posted Oct 20, 2009 07:30am EDT by Aaron Task in Newsmakers
The U.S. is an empire in decline, according to Niall Ferguson, Harvard professor and author of The Ascent of Money.
"People have predicted the end of America in the past and been wrong," Ferguson concedes. "But let's face it: If you're trying to borrow $9 trillion to save your financial system...and already half your public debt held by foreigners, it's not really the conduct of rising empires, is it?"
Given its massive deficits and overseas military adventures, America today is similar to the Spanish Empire in the 17th century and Britain's in the 20th, he says. "Excessive debt is usually a predictor of subsequent trouble."
Putting a finer point on it, Ferguson says America today is comparable to Britain circa 1900: a dominant empire underestimating the rise of a new power. In Britain's case back then it was Germany; in America's case today, it's China.
"When China's economy is equal in size to that of the U.S., which could come as early as 2027...it means China becomes not only a major economic competitor - it's that already, it then becomes a diplomatic competitor and a military competitor," the history professor declares.
The most obvious sign of this is China's major naval construction program, featuring next generation submarines and up to three aircraft carriers, Ferguson says. "There's no other way of interpreting this than as a challenge to the hegemony of the U.S. in the Asia-Pacific region."
As to analysts like Stratfor's George Friedman, who downplay China's naval ambitions, Ferguson notes British experts - including Winston Churchill - were similarly complacent about Germany at the dawn of the 20th century.
"I'm not predicting World War III but we have to recognize...China is becoming more assertive, a rival not a partner," he says, adding that China's navy doesn't have to be as large as America's to pose a problem. "They don't have to have an equally large navy, just big enough to pose a strategic threat [and] cause trouble" for the U.S. Navy.
--pick your side. The over-bought, over-inflated bubble that is the US stock market ... or CHINA. I've already picked my side, I hope you choose wisely.
These are still us traded issues with not the greatest reporting practices so if the fear does grow I highly doubt the will be immune regardless of how cheap they get
I mean I don't expect cnoa and ckgt to return to the march lows or anything there were reasons beyond the overall markets that they were depressed
Ckgt hadn't done a sec filing for a long time but than hired a firm around may a giving more updates now while cnoa had the litigation issue
As for the others I can't really comment didn't perk my interest enough to look too much into them
Chfi is a big question mark no sec filing or updates for a while
I mean I don't expect cnoa and ckgt to return to the march lows or anything there were reasons beyond the overall markets that they were depressed
Ckgt hadn't done a sec filing for a long time but than hired a firm around may a giving more updates now while cnoa had the litigation issue
As for the others I can't really comment didn't perk my interest enough to look too much into them
Chfi is a big question mark no sec filing or updates for a while
BSPM is one of my favs over the near-term. Very undervalued, and like you said, look at those margins!! Loaded up in the mid-$2.30s and will be buying any dips on up to $4.
I've got quite a few Pharma plays, but try not to be over-exposed to one industry. The others are: LTUS, CYXN, CKGT, and ENTB (not a china play).
CSOL is another one you might like. While I dont like Solar all that much, they have a $1.70 book value and No Debt, so this stock is crazy undervalued here. Another one of my very large holdings.
On to the Next One ... not to quote Jay-Z or anything
CHGS - China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.
China Gengsheng Minerals, Inc. Introduces New-Generation Light Castable Product to Meet Energy-Saving Needs of Steel Customers
Company Unveils the New Product at Baosteel in Shanghai
http://finance.yahoo.com/news/China-Gengsheng-Minerals-prnews-3600933017.html?x=0&.v=1
GONGYI, China, Sept. 22 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC:CHGS) (BULLETIN BOARD: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has developed a new refractory product for its steel company customers to cut energy costs and increase efficiency during steel-making.
The Company held a teach-in last week on the new, high-performance, thermo-insulating and light castables at China's largest steel and iron conglomerate, Shanghai Baosteel Group Corporation ("Baosteel"), where Gengsheng's CEO, Vice President of Product Development and technology adviser shared product specifications and testing results with Baosteel's directors of the procurement department, the technology department and various other managers and in-house experts.
Traditionally, Chinese steel mills use a dense castable as the back lining in heating furnaces to maintain the high temperature required for steel-making. The dense castable is bulky, heavy and consumes a large amount of electricity while in use. Gengsheng's proprietary light castable is more than two times lighter than the traditional kind while exhibiting better durability and contraction-resistance under high temperatures. The average price for Gengsheng's light castable is expected to be more than twice that of the traditional, dense one and the gross margin is also expected to be about 30% higher. The new product has now been officially accepted for trial use at Baosteel.
"After introducing our pressed bricks last year, we are now proudly showing a new type of functional refractory product to our steel customers," said Mr. Shunqing Zhang, Chairman and CEO of Gengsheng. "We are excited about this new product's market potential, as all furnaces in steel mills require castables as back lining, the layer that helps maintain a high-temperature environment. Our new product is attractive to steel companies because it is more cost-effective and energy-saving at the same time. In addition to Baosteel, we are following up on other potential sales leads with both our existing and prospective customers. We anticipate these trial uses will lead to sales orders by the end of the year."
Two other headlines from earlier this year: China Gengsheng Minerals, Inc. Wins $5.5 Million Fracture Proppant Contract with PetroChina's Changqing Oilfield
May 15, 2009 4:30:00 PM
China Gengsheng Minerals, Inc. Designated National High & New Tech Enterprise by Henan Province
May 11, 2009 12:49:00 PM
Company Website: http://www.gengsheng.com/ (doesnt the music just make you want to go out and buy the stock?)
CHGS - China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.
China Gengsheng Minerals, Inc. Introduces New-Generation Light Castable Product to Meet Energy-Saving Needs of Steel Customers
Company Unveils the New Product at Baosteel in Shanghai
http://finance.yahoo.com/news/China-Gengsheng-Minerals-prnews-3600933017.html?x=0&.v=1
GONGYI, China, Sept. 22 /PRNewswire-Asia-FirstCall/ -- China Gengsheng Minerals, Inc. (OTC:CHGS) (BULLETIN BOARD: CHGS) ("Gengsheng" or "the Company"), a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has developed a new refractory product for its steel company customers to cut energy costs and increase efficiency during steel-making.
The Company held a teach-in last week on the new, high-performance, thermo-insulating and light castables at China's largest steel and iron conglomerate, Shanghai Baosteel Group Corporation ("Baosteel"), where Gengsheng's CEO, Vice President of Product Development and technology adviser shared product specifications and testing results with Baosteel's directors of the procurement department, the technology department and various other managers and in-house experts.
Traditionally, Chinese steel mills use a dense castable as the back lining in heating furnaces to maintain the high temperature required for steel-making. The dense castable is bulky, heavy and consumes a large amount of electricity while in use. Gengsheng's proprietary light castable is more than two times lighter than the traditional kind while exhibiting better durability and contraction-resistance under high temperatures. The average price for Gengsheng's light castable is expected to be more than twice that of the traditional, dense one and the gross margin is also expected to be about 30% higher. The new product has now been officially accepted for trial use at Baosteel.
"After introducing our pressed bricks last year, we are now proudly showing a new type of functional refractory product to our steel customers," said Mr. Shunqing Zhang, Chairman and CEO of Gengsheng. "We are excited about this new product's market potential, as all furnaces in steel mills require castables as back lining, the layer that helps maintain a high-temperature environment. Our new product is attractive to steel companies because it is more cost-effective and energy-saving at the same time. In addition to Baosteel, we are following up on other potential sales leads with both our existing and prospective customers. We anticipate these trial uses will lead to sales orders by the end of the year."
Two other headlines from earlier this year: China Gengsheng Minerals, Inc. Wins $5.5 Million Fracture Proppant Contract with PetroChina's Changqing Oilfield
May 15, 2009 4:30:00 PM
China Gengsheng Minerals, Inc. Designated National High & New Tech Enterprise by Henan Province
May 11, 2009 12:49:00 PM
Company Website: http://www.gengsheng.com/ (doesnt the music just make you want to go out and buy the stock?)
CHGS (continued)
"The company believes EPS could reach .60 cents in 2010;"
http://www.redchip.com/visibility/investor.asp?symbol=CHGS
New Factory begins production of new "Fine Precision Abrasive", which is a Silicon Carbide based micropowder, in October, 2009.
Product: "Fine Precision Abrasive", material used to cut silicon wafers. Silicon wafers are very fragile and have to be cut with a special material.
New Factory: State of the art with a 20,000 metric ton annual capacity. They have a new patented process for producing the raw material, resulting in a higher quality product.
"The company believes EPS could reach .60 cents in 2010;"
http://www.redchip.com/visibility/investor.asp?symbol=CHGS
New Factory begins production of new "Fine Precision Abrasive", which is a Silicon Carbide based micropowder, in October, 2009.
Product: "Fine Precision Abrasive", material used to cut silicon wafers. Silicon wafers are very fragile and have to be cut with a special material.
New Factory: State of the art with a 20,000 metric ton annual capacity. They have a new patented process for producing the raw material, resulting in a higher quality product.
- Silicon Carbide sells for an average of $4200 per metric ton.
- Already secured first contract with large customer for 300-500 metric tons per month.
- The first contract could be worth from $15 million to $25M+
- The market for the Abrasive in mainland China and Taiwan is $2 Billion.
- The market for the solar-related abrasive products in China is $750 Million.
- The market is controlled by Japanese magnates; Nanxing and FUJIMI control 50% of the market.
- Margins are higher on the silicon carbide than on the Refractory product with gross-margins of 40%.
- Company is in position to double revenue and earnings over the next 12 months.
- Projecting approximately.31 cents in earnings for 2009; a 10 P/E mutiple would result in a stock price of $3.10; a 20 P/E mutiple would result in a stock price of $6.20.
iron and steel a story of yesterday IMO
in these china guys and china in general focus on domestic consumption
the overcapacity in the steel, cement space is massive
------------
ltus and cyxn dont' like the Q2 sales as far as comparison to last year and such
will take a deep look at bspm....seems like they are probably on track to uplist here at some point not to far out....
ckgt i like alot for the long term but not all that cheap anymore IMO....stupid stubborn me shoulda just bought back when it was 1.10 and i was waiting for 90 cents....got away from me and i'll wait/hope for a decline
in these china guys and china in general focus on domestic consumption
the overcapacity in the steel, cement space is massive
------------
ltus and cyxn dont' like the Q2 sales as far as comparison to last year and such
will take a deep look at bspm....seems like they are probably on track to uplist here at some point not to far out....
ckgt i like alot for the long term but not all that cheap anymore IMO....stupid stubborn me shoulda just bought back when it was 1.10 and i was waiting for 90 cents....got away from me and i'll wait/hope for a decline
CHGS (contd)
"New Factory begins production of new 'Fine Precision Abrasive,' which is a Silicon Carbide based micropowder, in October, 2009."
Coincidence I'm mentioning this now? You decide. But I suggest you get in before that announcement is PRd.
I started a position in this stock today at $1.73. Looks like some of you might be able to get in around $1.70 tomorrow -- lucky dawgs, getting in cheaper than me. Maybe an even better price if tomorrow is anything near as ugly as today was. But remember, just cuz I started a position doesnt mean it cant go lower, that's why I say "started a position" ... I have the right to average down ya know, so you cant go bragging about how you've got a higher percentage return than me.
Entry Point: Now, before it moves north of $2.
Exit Point: Selling 25-33% at $5. Will be holding the rest for $6+
This and BSPM will be the hot stocks in coming days/weeks. There are lots of other movers out there and some of them might have higher percentage returns over the short-term, so allocate your money accordingly. I dont suggest you ever sell a large portion of one stock to buy a new one -- unless you've already got big gains, at least 75% ROI. That's why it's important you always have at least 3% of your portfolio in cash, gotta have money for new plays as they come along without reducing your exposure to a stock you already like/love.
Enjoy the Show ...
"New Factory begins production of new 'Fine Precision Abrasive,' which is a Silicon Carbide based micropowder, in October, 2009."
Coincidence I'm mentioning this now? You decide. But I suggest you get in before that announcement is PRd.
I started a position in this stock today at $1.73. Looks like some of you might be able to get in around $1.70 tomorrow -- lucky dawgs, getting in cheaper than me. Maybe an even better price if tomorrow is anything near as ugly as today was. But remember, just cuz I started a position doesnt mean it cant go lower, that's why I say "started a position" ... I have the right to average down ya know, so you cant go bragging about how you've got a higher percentage return than me.
Entry Point: Now, before it moves north of $2.
Exit Point: Selling 25-33% at $5. Will be holding the rest for $6+
This and BSPM will be the hot stocks in coming days/weeks. There are lots of other movers out there and some of them might have higher percentage returns over the short-term, so allocate your money accordingly. I dont suggest you ever sell a large portion of one stock to buy a new one -- unless you've already got big gains, at least 75% ROI. That's why it's important you always have at least 3% of your portfolio in cash, gotta have money for new plays as they come along without reducing your exposure to a stock you already like/love.
Enjoy the Show ...
CHGS- Very cheap no matter how you look at. I think it will get more than multiple of 15. This is serious contender of NASDAQ in near term.
Even Ken Fisher loves this sector.
http://www.forbes.com/forbes/2009/0330/156-portfolio-strategy.html
"Ken Fisher argues the next bull market will be led by stocks in the energy, materials, industrial supply and consumer discretionary sectors"
I hear what you're saying about overcapacity and such, I just dont buy it when I read articles like that. Makes you wonder how much we really know about what the rest of the world is doing. That's why I like PUDA, CHGS, and CSGJ over the near-term and long-term.
:toast:
bpsm will have the dilution growing pains though
-----------------
The merger and acquisition strategic plan of Aoxing Pharmaceutical contemplates the acquisition of four or five pharmaceutical manufacturers and one medical supplement company over the next five-year period. Currently, Aoxing Pharmaceutical is still searching for and reviewing acquisition opportunities. In the event that we obtain future financing, we may use the funds for future acquisitions. The amount of future financing we are able to obtain will affect Aoxing Pharmaceutical's decision on acquisition.
Aoxing Pharmaceutical's goal is to have its various pharmaceutical and medical supplement products, such as the medicines for hepatitis, gynecopathy and various male diseases, and other conditions, distributed to 31 provinces in the PRC and to expand the sales network to approximately 300 cities, and ultimately become the pharmaceutical industry leader in northwestern PRC.
-----------------
The merger and acquisition strategic plan of Aoxing Pharmaceutical contemplates the acquisition of four or five pharmaceutical manufacturers and one medical supplement company over the next five-year period. Currently, Aoxing Pharmaceutical is still searching for and reviewing acquisition opportunities. In the event that we obtain future financing, we may use the funds for future acquisitions. The amount of future financing we are able to obtain will affect Aoxing Pharmaceutical's decision on acquisition.
Aoxing Pharmaceutical's goal is to have its various pharmaceutical and medical supplement products, such as the medicines for hepatitis, gynecopathy and various male diseases, and other conditions, distributed to 31 provinces in the PRC and to expand the sales network to approximately 300 cities, and ultimately become the pharmaceutical industry leader in northwestern PRC.
china is undergoing a transition
well it is being forced to
they can't rely on infrastructure and industrial production and exports anymore
need to focus on finding ways to get those saving chinese to spend their money and to utilize the infrastructure that they built
i posted an article about this not too long ago......on this tread...about the overcapacity in the cement and steel space...
china currently produces more steel than the US, russia, EU, and japan...COMBINED!! and they are still number 3 gdp wise behind japan...for now at least...will pass soon.....if that's not a bubble i dont' know what is
yeah don't be surprised to see a dilution outta bspmm soon...
not saying it won't fly near term but this is the general trend they do...
they rah rah them into the equity offering and then pull the rug
---------------
back in nov of 2008 when they released Q3 earnings this was their statement
As of September 30, 2008, we had cash and cash equivalents of approximately $1,243,050. 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. We expect to be the primary financing vehicle for Aoxing Pharmaceutical and will forward them the equity financing proceeds we receive. The additional funds would be provided to Aoxing Pharmaceutical through Shaanxi Biostar; would be accounted for as loan to Aoxing Pharmaceutical and would be eliminated during consolidation. The loan would not be interest bearing and would not be evidenced by a written note. The foregoing treatment is consistent with the prior financing of Series A Convertible Preferred Stock.
not saying it won't fly near term but this is the general trend they do...
they rah rah them into the equity offering and then pull the rug
---------------
back in nov of 2008 when they released Q3 earnings this was their statement
As of September 30, 2008, we had cash and cash equivalents of approximately $1,243,050. 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. We expect to be the primary financing vehicle for Aoxing Pharmaceutical and will forward them the equity financing proceeds we receive. The additional funds would be provided to Aoxing Pharmaceutical through Shaanxi Biostar; would be accounted for as loan to Aoxing Pharmaceutical and would be eliminated during consolidation. The loan would not be interest bearing and would not be evidenced by a written note. The foregoing treatment is consistent with the prior financing of Series A Convertible Preferred Stock.
