Dragonite on the HK exchange has been rather weak

Dragonite on the HK exchange has been rather weak lately.

The only recent news items I can find on Dragonite International (HK:0329) are the following :

http://www.aastocks.com/EN/News/HK6/NOW.527369.html

" DRAGONITE INT'L (00329.HK) announced the result of its placement. On 30 January, a total of 143 valid acceptances and applications were received, involving 109 million shares. A mild over-subscription of 2.68% was recorded."

http://www.aastocks.com/EN/News/HK6/NOW.526357.html

" DRAGONITE INT'L (00329.HK) issued a profit warning, expecting to record a loss for the year ended 31 December 2012. The loss was primarily attributable to the loss incurred by the Ruyan atomizing cigarettes business"

So perhaps the ongoing losses for 2012 is a possible explanation for the poor stock performance recently. Currently with DGTLF at $0.12 it seems that it is at a slight premium to the HKD to USD adjusted price of the HK:0329 but then again the DGTLF has not traded since it reached $0.12 in quite some time. Currently fair price would suggest a PPS under 10 cents but this also does not consider the subscription placement event which according to their report was actually over-subscribed, which again is not good for current holders. This means that effectively the oustanding share count has doubled and so existing share value has been cut in half, so perhaps the fair price is closer to $0.05 or thereabouts. Though without any volume it does not seem to matter what the daily PPS level is set at.

There were suggestions from the company that possible talks were going on with a large tobacco firm but perhaps it was only an inquiry into their business to see if Ruyan was a subsidiary worth taking over. We have not heard anything about that in several months so perhaps nothing came of it. Dragonite was supposed to get the Ruyan side of the business moving but it does not look like there are any sites selling the Ruyan line of ecigs so I guess once again we are all just waiting in the dark for updates on the company status.

GLTA

-$$ <== DGTLF <== +$$$