CMTP.OB)

[soxguy]

the galaxy acquisition has closed. this is something positive that we've anticipated. let's hope for the best tommorow.

[bgoodman]

What is you source on the galaxy closing?

[tokyopua]

the galaxy acquisition has closed. this is something positive that we've anticipated. let's hope for the best tommorow.

Thanks for pointing this out!

http://biz.yahoo.com/iw/060629/0140637.html

China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International
Thursday June 29, 5:27 pm ET


Company Says $8M Acquisition Accretive in 2006


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Jun 29, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has completed the acquisition of Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., a leading supplier of third-generation (3G) communications technology and equipment in China, in a cash and stock transaction valued at approximately $8 million.

In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

China Digital CEO Ran Liang, said, "The acquisition of Galaxy View and its wholly owned subsidiary, Sono Digital, positions us to become a competitor in the new rapidly evolving 3G technology communications industry. China is active in the worldwide technological shift to 3G technologies, which allows for data transmission, e-mail and instant messaging. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years.

According to U.S. GAAP rules, China Digital will report revenue and net income from Galaxy View commencing upon the closing date of the acquisition. Estimated diluted EPS, assuming that the Galaxy View acquisition closes at the beginning of July 2006, is projected to be $0.09. China Digital estimates revenues at $19.3 million and net income at $5.8 million.

Assuming that the acquisition had taken place at the beginning of the year at January 1, 2006, the pro forma diluted EPS is projected at $0.11, revenues at $21.9 million and net income at $6.9 million for the year ended December 31, 2006.

The company emphasizes that the foregoing statements regarding projections for 2006 are forward-looking, and actual results may differ materially. These are the company's targets, not predictions of actual performance.

About Galaxy View International, Ltd.

Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., is a high-tech enterprise specializing in the mobile communication equipment industry. The company has a broad range of services, including mobile equipment production, technical development, product standardization, market research, equipment setup and debugging, technical support, implementation analysis and searching for merger opportunities.

The company embraces a set of highly effective and standardized systems in management, production, and quality control. It is recognized by the Science and Technology department of Shenzhen as a "high-tech, software enterprise." The company has intellectual property rights in software development and production. Sono is known throughout its industry as one of the most competitive communication equipment producers. For more information on Sono, visit http://www.sono.com.cn.

About China Digital Communication Group

China Digital Communication Group, through its wholly owned subsidiary, Shenzhen E'Jenie Science and Technology Co., Ltd. (E'Jenie), is one of China's leading manufacturers and developers of advanced telecommunications equipment. E'Jenie sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing its expansion across East Asia, while seeking distribution partners and acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com or contact Roy Teng of China Digital, (310) 461-1322, e-mail: [email protected].

An investment profile on China Digital Communication Group may be found at http://www.hawkassociates.com/chinadigital/profile.php.

For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451-1888, e-mail: [email protected]. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.



Contact:
     Contact:
     Roy Teng
     China Digital
     (310) 461-1322
     e-mail: Email Contact
     
     Media Contacts:
     Frank Hawkins
     Ken AuYeung
     Gail Collins
     Hawk Associates
     305-451-1888
     


--------------------------------------------------------------------------------
Source: China Digital Communication Group

[dhiraj19]

It is a very positive news. I think they are showing their sincerity. They bought it in cash and gave some restrictive shares. I liked the following lines:


" China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years."


Only thing I am worried about is the stock sell after news ( In this case there was no rumor). So I dont know how much "buy the rumor and sell the news" applies in this scenario. Also, what do they want to do move from OTCBB? As it rises short interest will rise a lot and will be negative for this company.

Good luck all.

[la-onda]

good news, chart looks also better now 

[la-onda]

China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International
Friday , June 30, 2006 08:58 ET

LOS ANGELES and SHENZHEN, China, June 30, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the fastest growing battery components manufacturers in China, announced today that it has completed the acquisition of Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., a leading supplier of third-generation (3G) communications technology and equipment in China, in a cash and stock transaction valued at approximately $8 million.

In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

China Digital CEO Ran Liang, said, "The acquisition of Galaxy View and its wholly owned subsidiary, Sono Digital, positions us to become a competitor in the new rapidly evolving 3G technology communications industry. China is active in the worldwide technological shift to 3G technologies, which allows for data transmission, e-mail and instant messaging. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years.

According to U.S. GAAP rules, China Digital will report revenue and net income from Galaxy View commencing upon the closing date of the acquisition. Estimated diluted EPS, assuming that the Galaxy View acquisition closes at the beginning of July 2006, is projected to be $0.09. China Digital estimates revenues at $19.3 million and net income at $5.8 million.

Assuming that the acquisition had taken place at the beginning of the year at January 1, 2006, the pro forma diluted EPS is projected at $0.11, revenues at $21.9 million and net income at $6.9 million for the year ended December 31, 2006.

The company emphasizes that the foregoing statements regarding projections for 2006 are forward-looking, and actual results may differ materially. These are the company's targets, not predictions of actual performance.

[bigdogs99999]

I like the company's timing.  The bad news is first release, then the good news of both the acquisition and the updated earnings guidance.  Shareholder friendly!   

[Ramsburg]

Thanks for the inputs

Update:
Great news for CHID, and great timing with the release of the bad news first
China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International

Technical Update:
The chart changed completely with last week's price action, the $0.49 level was broken, and its now a support again, $0.51 the top of the short term descending channel was broken to the upside too, which means that the overall bearish pattern is now gone. This, by itself is not a bullish signal, but at least the chart turned from Bearish to neutral, which is a great beginning for a further move up.
Fridays close ended up at the last ascending support and near the ema-50, so we have now resistances at $0.61 and $0.64 (ema-200). From a momentum approach, CHID reached the DMI oversold territory during its plunge to the low $0.40's confirming an exhaustion selling mode at that time.

From this kind of pattern we can expect almost anything, CHID may have the strength to break through the $0.60's now, or it may need to triangulate a bit, so probably we'll have a lot of price noise on the next sessions. Our conviction is that CHID will breakout the $0.60´s and will move up again soon.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

[la-onda]

China/U.S. Acquisition Could Spur 3G Take-Up
Friday , June 30, 2006 17:24 ET

Jun 30, 2006 (TelecomWeb news break/Access Intelligence via COMTEX) -- Battery maker China Digital Communication Group is the proud new owner of Galaxy View International Ltd., a company that operates in China through wholly owned subsidiary Sono Digital Electronic Technologies Co. Ltd., a supplier of 3G communications technology and equipment.

The cash-and-stock transaction is valued at approximately $8 million. Los Angeles-based Galaxy View offers a range of services, including mobile-equipment production, technical development, product standardization, market research, equipment setup and debugging, technical support and implementation analysis. In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital says it acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7.5 million unregistered shares of the company's preferred stock, valued at approximately $5 million.

Says China Digital CEO Ran Liang, "The acquisition of Galaxy View and its wholly owned subsidiary Sono Digital positions us to become a competitor in the new, rapidly evolving 3G technology communications industry. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders. The shares will convert automatically into one share of common stock after five years.

http://www.knobias.com/individual/public/news.htm?eid=3.1.3bec2e1e8449ccce5c173c39a5d27536def3384eb2ff5e536891e873446fcb05

[Ramsburg]

Update:
Nothing special to had about CHID today, CHID had a negative reaction near the resistance (~$0.60) on a low volume day and after 3 strong sessions. It will probably need a little accumulation period before it gather strength for a breakout to the upside.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

[Ramsburg]

Update:
After 3 strong sessions, CHID went for 3 corrective sessions, losing some of the recent gains and approaching the support level: $0.49. CHID will probably trade the $0.50/$0.60 range for a while, consolidating this levels before a new move to the upside.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

[bgoodman]

China Digital Communication Group Appoints CFO and COO
Monday July 10, 5:46 pm ET


New COO Su Yi Zheng to Also Serve as Director


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Jul 10, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it appointed Su Yi Zheng as Chief Operating Officer and a director and Sarah Shao as Chief Financial Officer.

China Digital CEO Ran Liang, said, "Mr. Zheng and Ms. Shao are experienced executives who will help us build our business. Mr. Zheng served as general executive officer for Sono Digital Electronic Technologies Co., Ltd, a company that we recently acquired with operations in the 3G market. He has extensive experience in the 3G telecommunications field. Ms. Shao has worked with several public companies in China and other countries and has a strong background in corporate finance. With assistance from these two talented individuals, we will continue to strive toward establishing a profitable position in the 3G telecommunications industry. In addition, we remain committed to strengthening our position in the battery components manufacturing market."

A former general executive officer for Sono Digital, Zheng was president of Shenzhen Ke Zun Tong Tech Co., Ltd. Before that, he was executive manager at American New York Asia Communication Co., Ltd. for the China area from 1997 to 2001. From 1988 to 1989, he was an electrical engineer for the China Ministry of Posts and Telecommunication -- Guanzhou Telecommunications Equipments Manufacture. He has a Bachelor's of Science degree in electrical engineering from GuanZhou Zhongshan University.

Shao was the CFO of US KXD Technology Inc. before joining China Digital. Before that, she was an accounting controller for KXD Digital Entertainment Limited, a Singapore public company. She was an accounting controller for Hainan Pearl River Holding Co., Ltd., a Chinese A/B exchange public company, and Shenzhen Guizhou Light Industry Co., Ltd. She served as an accounting director at Shenzhen Shenmao Group Co., Ltd. from 1998 to 2002. She holds a Master's of Science from the Graduate School of Trade, Economics and Finance at China Academy of Social Science and a Bachelor's of Science in business administration and international accounting from Guangzhou Foreign International Business University. She is also certified from the General Accountants Association of Canada -- China Representation Office.

[Ramsburg]

Update:
A first positive reaction after 4 consecutive down sessions. CHID is still consolidating the recent price advance, a breakout of the $0.60 resistance would be the perfect trigger for a further move, anyway, we'll keep holding CHID.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

[bgoodman]

What is up with CHID?

Up over 11% today - anyone have news?

Go Longs!

[Ramsburg]

Update:
Great session for CHID, another powerful white candle, this time with rising volume, and leading CHID to close a little above $0.60. This is now a resistance area, but CHID is already starting what seems to be a bullish pattern, today's highs were above the first wave of the recent rally, momentum is still building and its far away from being overbought.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,