Another Week, 4 MORE Midwest State Distribution Deals for Pulse Beverage

With a $3.50 target price for PLSE (based on our present value financial model for PLSE in our last report) it is NOT too late to profit from this superb execution from Pulse Beverage.

According to the National Beverage industry research, 100% natural/low cal per serving Lemonade is one of the fastest growing segments of the non-alcoholic beverage market. If that is the case, The Pulse Beverage Corporation, makers of Cabana™ 100% Natural Lemonade, HAS to be one of the fastest or even THE fastest, growing consumer beverage companies in North America.

Securing a large regional convenience store distributor for four Midwestern states, Saint Joe Distributing means Pulse Beverage gets full service convenience store ("C-store") distribution for Cabana™ lemonades in the four Midwestern states of Missouri, Kansas, Iowa and Nebraska via four regional depots. Saint Joe has a state-of-the-art, fully-automated warehouse distribution system with 340,000 cubic sq ft of frozen and cooled warehouse.

Paddy Sheya, Pulse's National Sales Manager, said in the press release, "We are very excited to have secured Saint Joe as our C-Store distributor in the states of Missouri, Kansas, Iowa and Nebraska. Saint Joe provides excellent service to the C-Store sector covering a major portion of the Midwestern market for over 60 years. Saint Joe's C-store distribution system fits well with our soon to be announced Midwest supermarket distribution and, additionally, our flagship product, Pulse® NutriPurpose, which we plan to red carpet introduce in the next couple of months."

So...we ALSO now have a schedule for the introduction of the Pulse® NutriPurpose line as well...next 60 days. Our next research update will go back to our sales and financial model and UPDATE for a Pulse® NutriPurpose introductionin Q2 2012.

It's NOT a mystery: GREAT execution on the part of Pulse Beverage is why the stock is UP over 70% since the beginning of the year.

But I repeat: it is not too late to build a position here at this valuation...remember our $3.50 price target from our latest report on PLSE.

With a 12 month forward sales basis of >$20 million in Pulse and Cabana brand beverages, we believe Pulse will put itself squarely on the radar of the acquisitive major multi-national beverage companies. According to Coca Cola, only "3% of beverage start-ups reach sales of $20MM"-the threshold where acquisition deals become of interest to major brand marketers. Our update gives a full overview of Pulse's status and strategy for the Cabana™ and Pulse brands.

In short: Our investment thesis on PLSE was and is simple "Develop and launch a 1M+ case per year brand for a new healthy non-carbonated beverage and the odds of acquisition at $250-$500 million+ price become very likely and very investment worthy."

We see NOTHING to change our analysis or potential

Click here to view our detailed report. http://nbtequitiesresearch.com/t/l/YtdAohqenSTw7Is

Tobin Smith

Founder and Chairman

NBT Equities Research

Greenbackers holding CHGI crossing a buck... Day's Range: 1.00 - 1.01

52wk Range: 0.53 - 2.45

Volume: 6,450

Avg Vol (3m): 26,476

Market Cap: 22.80M

P/E (ttm): 15.87

EPS (ttm): 0.06

...nice climb from .45 the last month....China expanding nuclear plants.....CHGI a direct stock poised to benefit as well given their high end graphite production.

CHGI can produce graphite with 99.9999% purity and larger sizes which are required for nuclear graphite. The Chinese central government will invest 400 billion RMB in nuclear power plants in the next 15 years. As of October 2008, CHGI is one of four companies in China who have the technology to produce nuclear graphite for nuclear power plants....

Coal is the only cheap commodity in China, and the Chinese are trying to reduce pollution and diversify into other forms of energy.

Mainland China currently has 14 nuclear power reactors in operation. 25 more are now under construction, and more are about to start construction soon.

Additional reactors are planned, including some of the world's most advanced, to give a five- or six-fold increase in nuclear capacity to at least 60 GWe by 2020, then 200 GWe by 2030, and 400 GWe by 2050.

This aggressive build out by the Chinese has led to massive new demand for Uranium and High Purity Graphite for the foreseeable future.

Also see link below for additional bullish reporting on CHGI / Graphite

http://www.nbtequitiesresearch.com/company/china-carbon-graphite-group-chgi/report/chgi-earnings-up-275-year-over-year

NBT Two-Minute Drill Interview with David Hall, CEO of Replicel Life Sciences

We recently interviewed David Hall, CEO of Replicel Life Sciences, Inc., on the upcoming Phase I/IIa clinical trial results “reveal” for their cell-based hair regeneration technology some 90 or so days away.

With positive results expected from their current Phase I/IIa trial, Replicel will move immediately into a 100-patient dosing trial from which it hopes to build an overwhelming set of successful data for the patented RepliCel™ procedure for minimally invasive hair cell growth and implantation.

With two successful data-sets in hand, Replicel intends to sell its entire hair growth and implantation business to the highest Big Pharma/Big Bio bidder. NBT analyses the value of their follicular regeneration business at about $500 million—or more than $10 a share with an expected 10 million share dilution from money raising activities in 2012.

NBT: In your pre-clinical trials with specially modified mice you saw 50% hair growth with cosmetically attractive density 100% of the time…Replicel is now roughly 90 days away from the release of your Phase I/IIb human trial results from 19 human patients. What should investors be looking at most?

DHall: These are the three key data points: First and foremost interim analysis is human safety. To date we have seen no safety issues and frankly, we do not expect any. The second key interim object is an indication of efficacy at 6 months or specifically the increase in density of existing hair, and indication of new hair follicles. We will use all that data in the filing of our Investigational Medical Product Dossier which goes to the regulators for the Phase II/b 100-pateint dosing trial.

Remember this is just the first look at 6 months for all the clinical trial patients…all patients will be measured again for hair growth and density at 12 and 24 months as well. We establish a baseline of results from day zero and then you measure results at 6, 12, and 24 months against that original baseline.

NBT: How do you measure results at this initial look?

DHall: The contract research organization (“CRO”) takes microscopic images of every patient…each patient dossier is reviewed at 6 months and all data is cleaned for 100% properly entered data. If any data is missing, the CRO and the clinic coordinate to enter the missing data.

Each patient has one side of their scalp with a placebo and one side with their own dermal sheath cup cells implanted. Our patents as you know are around the growth and implantation of the highly specialized dermal sheath cells vs. less-specialized dermal papillial cells.

The CRO does 100% of the data collection. All data is blinded so RepliCel cannot review the data until it is unblinded.

NBT: How much hair growth do you expect at 6 months?

DHall: Well first you have to answer that question in the context of the existing “gold standard” surgical hair transplantation. In the first few months the state-of-the art micro-surgical procedures, all the hair fiber in the area of the surgery falls out and begins to reappear around the six month time frame. It normally can take up to 18 months for the success or failure of the micro-surgery to become evident.

In that context, virtually any amount of hair growth or hair density at 6 months for RepliCel™ procedure would give us the data we need to immediately pursue the Phase II/b 100-patient clinical trial. What we are looking for is demonstration of increased fiber density of the existing hair from base line as well as in indication of new follicular growth.

We have also taken biopsies of a random sampling of the patients to look at a microscopic level to see growth below the scalp. We are looking at these biopsies multi-dimensionally. That is to say we are not just looking at the topical site—we are looking at small biopsies of the injection sites…looking at the angles of hair growth. It’s not good enough to grow hair, you have to have the appropriate growth orientations. That means cosmetically acceptable results…the animal trial got appropriate angles growing in a natural angle…not clustered in one little patchy area.

What we are ultimately looking for is evidence of cosmetically acceptable hair regeneration and increased density of hair follicles initially in the transplanted region of the scalp. Eventually, we expect to see actual regeneration of existing hair follicles NEAR the implanted region…as we saw in the pre-clinical animal trials. Regeneration of dormant hair follicles is the “secret sauce” of our procedure—we really don’t know why it happened in our animal trials but it did.

Even in the worst case scenario—i.e. zero response above the initial baseline at six months… we continue to gather the data through 12 and 24 months. Responders can come later as is seen even with micro transplants.

In short…this is pretty straight forward science: if you have ANY growth from the patients’ own implanted autologous dermal sheath cup cells, one should expect to have MORE growth of both those cells and from dormant hair follicles that have regenerated.

NBT: What else is Replicel working on in the hair regeneration arena?

DHall: In parallel to our clinical trials, we are validating a number of cell markers for dermal sheath cup cells. These markers are very important because with their unique expression we could accelerate and largely automate both our dermal sheath cup cell isolation and replication protocols.

Speeding-up/improving both these aspects of the RepliCel™ procedure are critical for its commercial application.

The science is very straight forward. Each of these dermal sheath cells express certain proteins, proteins you ONLY find in the dermal sheath cup cells. To date we have identified quite a number of unique protein markers. With these unique identifiers or “markers” we can almost completely automate our process and thus greatly accelerate the RepliCel™ procedure for the patient/clinician.

In short, as we create more efficiency and speed in the isolation and replication of the dermal sheath cup cells significant value is created for the company. More procedures per day/week/month means more revenues for the clinician.

NBT: When do you get an endpoint for this “hunt”?

DHall: There is no magic number for protein markers…we already have many targets. But by year end we will get to the final end points. Remember, automating our isolation and growth procedures really adds significant value to the eventual sale of the RepliCel™ procedure.

Automating the cell isolation also helps in the regulatory process…both in speed and in validating that these dermal sheath cells we are isolating and regrowing are ALWAYS the same cells and not a mix with other unwanted cells. We have a manual process right now for the isolation and regeneration protocol. For the next clinical trial they will use the manual procedure and we will seek to integrate the automated process in a new set of trials.

NBT: Anything else on your regulatory approval risk?

DHall: The beauty of working with autologous cells—meaning the patient’s own cells—is that we are using a particular cell population whose only purpose in life is to instruct a cellular cascade to grow hair fibers. Ours is a 100% completely different regulatory environment than if we taking one type of cell and trying to manipulate into another type of cell…that kind of cell-based therapy is a VERY difficult regulatory environment…mostly because every step of the way the cells have to be proven to be the SAME induced cell.

It’s really simple: in using a patient’s own cells we are only increasing the concentration of the cells…NOT changing those cells. This means we have MUCH lower safety and lower regulatory hurdles to meet during the approval process.

NBT: You have made it clear that assuming you have the clinical data to prove your procedure is the new standard in hair regeneration you will seek to sell the division in its entirety to a multi-national Big Pharma/Big Bio player. Why?

DHall: Look…the biotech space is growing again…Big Pharm/Big Bio have big problems with their patent cliffs and there is only so much M&A you can do at the high end. To retain/enhance their market valuations they have to an in fact have begun to change their downstream strategies by partnering and acquiring technology further upstream.

If we show hair growth and continued growth in our 50 men/50 women dosing trials conducted under a clinical trial harmonized for European and US FDA regulations, it will be an attractive asset. There is a very Darwinian nature in the Big Pharma/Big Bio ecosystem. Big Pharma and Big Bio are on the top of the “food chain”…and it is NO secret they need BIG numbers from new long-lived patented products to “move the needle” for higher valuation.

That is why we are doing everything to FDA standards. No shortcuts. If our science wins the day, the valuation of the RepliCel™ procedure given the $5 billion worldwide annual market for hair restoration products and services will be obviously enormous.

If we work hard and smart every day, we get a little closer to that reality.

NBT: Thanks David—can’t wait for the big reveal…my “follicly challenged” friends are ready to make their reservations now!

Interviews by Tobin Smith

Fox Business News Anchor

NBT equity group founder

http://www.nbtequitygroup.com

RepliCel Provides Quarterly Update on First-in-man Clinical Trials

VANCOUVER, BC – January 30, 2012 - RepliCel Life Sciences Inc. (the “Company” or “RepliCel”) (OTCBB: REPCF) is pleased to report that the six-month post injection follow-up period of its TS001-2009 clinical trial is nearing completion.

To date, 17 of 19 subjects have had their six-month follow-up visit, during which time subjects had their overall health evaluated. This included subjective and objective assessment of verum and placebo injected sites and digital images were taken of the scalp and injection areas. The digital images will be used to assess any treatment response and any post-injection changes in scalp health compared to baseline and between the two treatment areas. The remaining two patients are scheduled to complete their follow-up visits before the end of March. Four patients will complete 12-month follow-up visits in that same time frame.

To date, no serious adverse events have been reported post injection in any of the 10 men and 9 women participating in the study.

The TS001-2009 study team will be performing a thorough review of the collected study data throughout the months of March and April 2012. Once complete, the treatment groups will be revealed (‘un-blinded’) to the data analysis team and the data will be analyzed. RepliCel remains on schedule to release the initial review of efficacy results in April 2012.

Subject efficacy at 6-months post injection is the first step in measuring a treatment response. All subjects will continue to participate in the post injection follow-up period of the study until August 2013 and a review of final safety and efficacy results will commence before the end of 2013. The continued follow-up period is a key component of the study to confirm treatment safety profile and response trends at 6, 12 and 24 months.

The initial data from RepliCel’s 6-month subject follow-up will be used in the Company’s Investigational Medical Product Dossier (IMPD), which is presently being developed for a Phase IIb dose-ranging clinical trial of 100 patients that is expected to commence in fall 2012. The protocol will be submitted to the EMEA, FDA and Health Canada for review. A final decision on the location of the trial is pending.

About RepliCel Life Sciences

The Company has developed RepliCel™, a natural hair cell replication technology that has the potential to become the world’s first, minimally invasive solution for androgenetic alopecia and general hair lossin men and women. RepliCel™ is based on autologous cell implantation technology that replicates a patient’s hair cells from their own healthy hair follicles and, when reintroduced into areas of hair loss, the Company hopes to initiate natural hair regeneration. Patents for the technology have been issued by the European Union and Australia and are pending in other major international jurisdictions. The RepliCel™ procedure has been developed over the past nine years by the Company’s recognized research scientists and medical experts – specialists in the fields of hair growth, hair biology and dermatology. Additional information on RepliCel is available at www.replicel.com.

Tobin Smith

Founder & CEO| NBT EQUITY GROUP, INC.

Washington D.C. | Los Angeles | New York | Palo Alto

http://www.nbtequitygroup.com

GCLL monitor closer back near .50...has been predictable for channeling back to .70 in last qtr.....Recall discussions back in Dec regarding their igniter technology / possibility of large commerical contract...Suspect we might hear more on this, this month....

Last Trade: 0.54

GreenCell, Inc. Announces it Has Commissioned the Design and Construction of a New Technology High Throughput Production Kiln Wed, Dec 7

....has commissioned the design and construction of a new high throughput roller hearth kiln from SenCer Inc. in preparation for its igniter volume scale-up

GreenCell, Inc. Announces Completion of Working Prototype of Proprietary Ultra Temp(TM) Ceramic Igniter Thu, Nov 3)....Dan Valladao, CEO of GreenCell, stated: "We are very excited to have completed the first working prototype of our Ultra Temp igniter. We believe that this product will revolutionize the $600 million dollar hot surface igniter industry..."We are also extremely excited that we have been able to develop a relationship with a major OEM at this early stage of our company," said Valladao. "To have a major OEM potentially join forces with us to commercialize our Ultra Temp igniter is a strong validation of our technology

GreenCell is engaged in a joint venture with SenCer Inc. to develop, commercialize and market SenCer's UltraTemp(TM) ceramic composite materials for Home and Transportation applications. GreenCell has identified multiple industries with significant commercial applications with potential revolutionary results. Some of the many applications for this technology are SOFC Fuel Cells, Igniters, Braking, Oxygen Sensors, and Ceramic Heaters.

Replicel Life Sciences, Inc. (Replicel) is rapidly bringing to market what will be considered the "holy grail" of a permanent solution to pattern baldness. This is done by implanting a patient's own hair cells into their hairless scalp to permanently grow new hair and regenerate dormant hair cells at the same time.

After 9 years of research, the Replicel procedure is 3-4 months away from the clinical trial evidence they believe will conclusively prove that a patient's own transplanted hair cells will provide a permanent solution for hair growth for all men and women. Successful results in their Phase 1/b trial will take Replicel to a full 100 patient Phase 2 trial, with result data 18 months from the end of the dosing period.

NBT believes this breakthrough treatment would create a new healthcare treatment worth $500 million or more upon sale to one of the many global consumer healthcare companies currently in the market for their next $billion blockbuster lifestyle healthcare treatment (the last one being Botox for Allergan).

Interesting report expands on... http://www.nbtequitiesresearch.com/company/replicel-repcf

PLSB bullish news on yet another distribution deal today. Keep in mind recent flexing off of .50 on string of distribution deals.....Very impressed with the Marketing push here....Company not far from us in DTC center in Denver...Several mini marts around town now have the lemonade drink on their shelves..and it's pretty damm good.

Debate this stock down around .55 from both a fundamental and technical perspective.http://www.greenbackers.com/

Last Trade: 0.55

Trade Time: 12:26PM EDT

Change: 0.05 (8.33%

Pulse Beverage Achieves Total Rocky Mountain Regional Distribution for Cabana(TM) Brand LemonadeMarketwire(Wed 9:00AM EDT)

The Pulse Beverage Corporation (OTC.BB: PLSB.OB - News) ("Pulse" or the "Company"), makers of the PULSE® brand of "good-for-you" NutriPurpose™ beverages, today announced it has achieved its targeted goal for the Rocky Mountain regional distribution of its Cabana™ Lemonades by Pulse through its most recent agreement just reached with New Age Beverage of Denver, Colorado which successfully caps distribution requirements for the entire territory.... Paddy Sheya, National Sales Manager of Pulse, commented, "We are extremely excited to have New Age Beverage as our distributor for Cabana™ All Natural Lemonades. This agreement caps our distribution requirements throughout the Rocky Mountain Region; I am looking forward to working with them. They have a proven track record in the beverage business and have extensive knowledge in the New Age beverage category." Bob Yates, CEO of Pulse, further commented, "We are very pleased to partner with such a high quality distributor like New Age in the distribution of our Cabana™ Lemonades."

Pulse Beverage Commences Midwest Distribution in Illinois and MissouriMarketwire(Wed, Oct 26)

Pulse Beverage Places Cabana(TM) Lemonade With Largest Natural Food Distributor in the USAMarketwire(Tue, Oct 11)

Pulse Beverage Completes Dual Punch Western Distribution Deal for Cabana(TM) Brand Lemonade LaunchMarketwire(Mon, Oct 3)

Pulse Beverage Places Cabana(TM) Lemonade Brand in Western Rocky Mountain RegionMarketwire(Wed, Sep 28)

Pulse Beverage Launches Cabana(TM) Brand Lemonade Into Key Southern California MarketMarketwire(Thu, Sep 22)

Pulse Beverage Engages Noted Sales and Distribution Industry Executive Robert WatkinsMarketwire(Tue, Sep 20)

Pulse Beverage Partners With Pacific Bottleworks for Exclusive Nationwide Distribution Agreement Across CanadaMarketwire(Wed, Sep 14)

Pulse Beverage Sells Out First Shipment of Cabana(TM) Lemonade and Appoints Veteran Sales Manager to BoardMarketwire(Mon, Sep 12)

Posted by greenbackers at 11:39 AM

Start watching VELA...stock has been a sleeper for awhile, but back in August 2011 revenues commenced..at that time the stock ran from .10 to .22..It is back at .11 now, but recently then opened 5 broadband stores in Peru. in addition then announced pre subscription orders were 7000 far exceeding the 2000 planned. Expecting news today or tomorrow regarding update on the 4g deployment in S. America....Think this stock has a good chance of doubling again... •10 Reasons Why VelaTel Global Communications is the World's Most Undervalued 4G CompanyMarketwire(Thu, Sep 22)

http://finance.yahoo.com/news/10-Reasons-Why-VelaTel-Global-iw-79778561.html?x=0

10 Reasons Why VelaTel Global Communications is the World's Most Undervalued 4G Company - Yahoo! Fin

‎

•VelaTel Global Communications Signs Over 7,000 Potential Customers in First Days of GO MOVIL Launch; Expects to Begin Generating Revenues in OctoberMarketwire(Tue, Sep 20)

•VelaTel Global Communications Opens Five GO MOVIL Stores in PeruMarketwire(Wed, Sep 14)

•VelaTel Global Communications Launches Wireless Broadband Network in PeruBusiness Wire(Mon, Aug 1)

A stock we've been following closely - Medical Cannabis play CANA reports another record revenue month...They are among the fastest growing otc stocks we track @ sister site www.greenbackers.com.

General Cannabis Announces Record Monthly Revenue for WeedMaps Media and Successful Beta Testing Com

finance.yahoo.com

General Cannabis Announces Record Monthly Revenue for WeedMaps Media and Successful Beta Testing Completion for SafeAccessMD

WeedMaps Media, Inc. reported continued positive momentum, with its 21st consecutive month of revenue gains ..WeedMaps reported a more than threefold monthly revenue increase to $1,250,000 for the month of September 2011, compared to $365,177 for the month of September 2010.

NBT detailed bullish analysis of the stock mid summer worth reviewing

http://www.nbtequitiesresearch.com/company/general-cannabis-canapk

General Cannabis ($CANA) is THE dominant marketing services organization for the medicial marijuana industry.

How dominant?

Dispensaries we have talked to recently report their revenues BEFORE engaging its subsidiary WeedMaps Media and otherGeneral Cannabis services at around $20,000 a month.

Ninety days AFTER they get on the full WeedMaps programs, however, they report revenues of about $45,000 a month … more than double!

When CANA is done with its S-1 filing and goes ahead with a $15 million PIPE round to fund a set of key acquisitions, its 15% monthly growth could very well turn into 20%-25% a month growth.

Earlier in the summer we submitted bullish comments here at examiner on the stock.

http://www.examiner.com/stock-market-in-denver/cannabis-proxy-cana-breakout-chtl-14-upbeat-interview-name-change-velatel

Recall this summer also Barney Frank introduced a bill to federally legalize cannabis.

More recent news:

•General Cannabis Appoints Jerry Lotter as Director of Operations; Announces Record Monthly Revenue for WeedMaps MediaMarketwire(Thu, Sep 8)

•WeedMaps Media Finalizes Licensing Agreement With SC Laboratories and Launches Cannabis TestingMarketwire(Thu, Sep 1)

•WeedMaps Media Releases New Android App for AmazonMarketwire(Tue, Aug 30)

•

The stock may be flat currently, but we've seen gradual pickups following some of these monthly reports.

Last Trade:2.10Trade Time:9:42AM EDT

Technically, continue to monitor ongoing support @ 2. History of pops back to/above 3 in 2011. Target 2.50 in Oct / 3 before year end.

Continue reading on Examiner.com Cannabis play CANA reports another record month of revenues / more then 3fold. - Denver Stock Market | Examiner.com http://www.examiner.com/stock-market-in-denver/cannabis-play-cana-reports-another-record-month-of-revenues-more-then-3fold#ixzz1a1XUS600

Although down, we remain undaunted with largest greenbackers portfolio holding CHGI.

Included in an article below that sheds interesting light on the new plant as well as the good standing with the company itself. Interesting how things are a little different there working with their government...Last paragraph points that out

CHINA CARBON GRAPHIT

(OTC BB: CHGI.OB )

Last Trade: 0.87

Trade Time: 2:18PM EDT

Change: 0.07 (7.45%)

Prev Close: 0.94

Open: 0.90

Bid: N/A

Ask: N/A

1y Target Est: N/A

Day's Range: 0.90 - 0.90

52wk Range: 0.46 - 2.54

Volume: 13,333

Avg Vol (3m): 25,982

Market Cap: 19.83M

P/E (ttm): 7.25

EPS (ttm): 0.12

Maynard

Friday, September 30, 2011

China Graphite Plant Visit - private investor - 9/14/2011

Message flagged

Monday, September 19, 2011 9:29 AM

I spent the entire day with the CEO Donghai Yu traveling from the airport in Beijing to Hohhot, to the plant, and back to the Hohhot airport. The afternoon included a couple hours with the CEO and the CFO and a couple of the plant managers, touring the actual facilities in Inner Mongolia. Donghai was very kind and also acted as interpreter at the plant for me. This is a summary of what I learned and my observations.

In terms of the plant itself, a primary concern of mine as a shareholder was to get a feel for the plant operations, and the status of the new facility. Also I wanted to know if the new facility would in anyway interfere with existing operations, and if the current operations and expansion seemed well planned, executed, and managed. Overall, I came away feeling confident that their recent performance is no fluke, and that the expansion is on track. I had access to the inside workings of all the new buildings, except the new dip building, still being finalized.

Commentary on the plant, operations, systems, etc.:

In the last quarter approximately 75% of revenues were high purity and 15% of that was for export. Right now the company continues to experience strong customer demands. Orders have to be placed at least three months in advance to be produced and shipped(same with their competitors), so they have pretty good visibility for the current and next two months.

The new facilities have more automation than the existing ones. Key point - the company has about 550 employees, and will only have to hire a few more for the new facilities - while doubling their output, in these larger sizes. This is impressive labor leverage. Also, since the new plant does the larger sizes of product, I believe they will sell everything that plant can produce practically right away.

I learned much about what they make, and how they make it. It does appear that in the new plant they have done some novel automation and physical innovations -- they are keeping those details private and away from competitors (some of this has to do with the production automation, and the flow of materials, part of which occurs unseen under the floor of one of the new buildings.)

The key plant manager is Mr. Ren. He knew everything. I pressed Donghai a couple times about how the place would work with out him, and together they seemed to feel there was a team of others that can cover for him if necessary.

This facility is located in a small town, a few hour drive from Hohhot after an hour flight from Beijing. CHGI is the major employer there and have very little turnover. They feel they have great employee loyalty, and I do not doubt that. It is in fact a very large property, and they take care of it (like plant and maintain trees on unused land). All this may tie to their good relations with the community and the local government - and it appears to be a snap for them to get approvals for whatever they plan to do.

There are a few order takers that work with the distributors. There are two international sales people that work on a base and commission. As they get into new markets, if it is appropriate to add more salespeople, they will.

They do not use much water, but they use a lot of electricity. They appear to get cheap electricity pricing largely do to their location. They also burn gas in their baking facilities, but that is reclaimed from other parts of the process.

They are relatively close to their three primary coke and coal tar supplies, two in Shan Xi (Datong City), and one in Ji Lin.

Product is generally trucked to a port and released from there, and some product is shipped by train. The plant is close to both a major highway and a train terminal.

BDO became their auditor 6-7 quarters ago. They send a team of 5-7 people out every quarter. They insisted that the company improve their inventory control systems right away, which was done. They appear to have been pretty hard nosed about revenue...rightly so. No problems that I can tell. The company pays utilities and salaries monthly, suppliers 15% in advance and balance on receipt. Most of their

sales also require a similar down payment, with the balance due in 60 days.

In terms of future plant efforts, it sounds like the isostatic machine will happen next year.

Finally, the stated book is $2/sh. or about $50mil. I can not imagine a similar facility being put together, with all the start-up costs, happening today in North America for anywhere near $50mil. The actual number would have to be far higher in my view, and that is assuming it would ever happen at all given the permitting and environmental overhangs.