ORLANDO, Fla., Dec. 5, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies Inc., today announced that it has issued a third quarter 2007 research update for China Kangtai Cactus Bio-Tech Inc. (OTCBB:CKGT), a vertically-integrated grower, developer, manufacturer and marketer of a variety of cactus-based consumer products.
Tony Telan, MBA, RedChip Research Analyst, wrote in the report:
"CKGT continues to deliver impressive revenue growth. For Q3 2007, revenues grew to $3.9 million or 40.8% from $2.8 million in Q3 2006. On a sequential basis (from Q2 to Q3), revenues grew 6.5% during the quarter. Management at CKGT expects a stronger fourth quarter with projected revenues of $4 million. The Company attributes this continuous revenue growth to effective marketing and increased acceptance of its products by the Chinese market.
"In addition, CKGT trades at less than its book value and has no share dilution through outstanding warrants. The Company continues to deliver impressive top and bottom line growth, and current strategic initiatives with its distributors should continue to drive revenue growth. As CKGT expands its product pipeline, the Company could experience a substantial jump in revenues. At current levels, we recommend accumulating CKGT shares on weakness. Our 12-month target price of $2.30 is based our expectation that CKGT will achieve a P/E multiple of 14.4x our FY 2007 EPS estimate of $0.16."
To receive a complimentary copy of the RedChip Visibility Research Report for China Kangtai Cactus Bio-Tech, please visit:
http://www.redchip.com/visibility/about.asp?page=vreport&reportid=79&from=12052007news
About RedChip Companies, Inc.
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Disclosure
The analysts contributing to this report do not hold any shares of CKGT. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. China Kangtai Cactus Bio-Tech, Inc. is a client of RedChip Visibility, a division of RedChip Companies. RedChip Visibility has been contracted by China Kangtai Cactus Bio-Tech, Inc. to increase investor awareness of CKGT to the small-cap equity community. These services may include investor conferences and digital and print distribution of CKGT investor related materials. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that RedChip is an investor relations firm hired by the Company and receives a monthly fee of $5,000 for RedChip services.