I completely agree with you as to why the stock is down other than the market and china small caps being down. For me, with them being rather new and just beginning to make a major impact, sales growth is the most important as they build product and company recognition. SGA/Revenue can easily come down over time as it is extremely high at about 50% over the last 12 months and I see that as a good sign because it shows the type of effort that they are making along with agressive expansion into many cities and rural areas.  I also believe that the stock will be lagging until after Q3 as SGA/Revenue should start coming down, sales in the new regions pick up more, and the start of several other revenue streams that are not in Q1 or Q2. So as it goes along, their revenue and income should get stronger and stronger. In 2011, I believe we will start to see SGA/Revenue come down below 40%.

In regards to stock issuance, if an acquisition comes along that is a significant long term benefit and it is specifically stated what it will be used for, I am also fine with it as a long term investor. They did state several times that dilution is not planned for this year and will only occur if an opportunity presents itself. So it does not seem as if there is any planned dilution. Obviously the higher the price, the better the timing to do it. I also agree that they should be more direct and make their own comment about certain things such as dilution instead of getting the question and being brief about it. Hopefully, they do give better details on their planned SGA/revenue for the remainder of this year and even 2011 as it would provide more clarity and stability for the stock.

Overall, I think they have an incredible opportunity and an incredible competitive advantage and it looks as if they are taking advantage of it with their Hep B medication. It also seems as if they are slowly becoming more diverse with new drugs, nutrients, raw materials, acquistions(Xian Meipude), and also other drugs coming out in the future. They are taking all of the correct steps for even greater growth and success. On top of it, they added a new CFO that seems as though he may be better at getting the information about the company out and has a very strong resume. I would be surpised if they did not exceed expectations as they were revised upwards in April and Q3 and Q4 will by far be stronger than the 1st  half.  Even if they just hit their expectation of about $19 million net income, forward P/E on the current price of the stock is about 3.5 and I expect income to come in above $20 million, but either way, extremely undervalued. So it should only get better from here for the long term investors of the stock.