ORLANDO, Fla., Sept. 17, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued an initial research report on China Kangtai Cactus Bio-tech, Inc. (OTCBB:CKGT).
China Kangtai Cactus Bio-tech, Inc. (OTCBB:CKGT) is the dominant player in cactus-based consumer products with approximately 60% market share of China's edible cactus production industry. China's consumption of vitamin and mineral supplements has been growing at an astounding rate of approximately 18% per year over the last decade due to increased per capita income and the emergence of a new consumer culture. CKGT is strategically positioned to capitalize on this growing demand with an established position as a pioneer in the cactus-based nutraceuticals sector. The Company's own R&D arm is composed of a 12 member team that has successfully produced 31 product patents: 16 approved and 15 pending.
CKGT is a compelling value play with strong growth prospects. The Company has demonstrated its ability to consistently grow revenue and earnings. CKGT delivered an impressive 9% expansion in gross margin to 32% in FY 2006 from 23% in FY 2005. In comparison to industry peer China Yingxia International, Inc., CKGT reported higher revenues in FY 2006, but is only trading at 37% of CYXI's value. We believe that CKGT is significantly undervalued and will experience substantial appreciation over the next 12 months and beyond.
To receive a complimentary copy of the RedChip Visibility research report for CKGT, please visit:
http://www.redchip.com/visibility/about.asp?page=requestCKGT_initial
About RedChip Companies, Inc.
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Disclosures
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.