Contact Information: Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com 214-722-3065
China Crescent Enterprises, Inc. Anticipates Continued Buy-In to Cover Short Positions as Company Remains on Regulation SHO Threshold List
| Source: China Crescent Enterprises, Inc.
DALLAS, TX--(Marketwire - June 3, 2009) - China Crescent Enterprises, Inc. (OTCBB : CCTR )
today announced that the Company anticipates a continued buy-in to cover
short positions as the Company has remained on the Regulation SHO
"threshold security" list since the middle of May.
The threshold security list can be found at:
http://www.nasdaqtrader.com/trader.aspx?id=RegSHOThreshold.
China Crescent recently reduced the number of issued and outstanding common
shares on a ratio of 25:1. Since the reduction, the PPS has traded at a
proportionally higher price than prior to the reduction. Any short sales
prior to the reverse would now be holding short sales at a loss.
The Company has published a suggested fair value target price of
approximately $0.30 PPS. This translates to an approximate $3 million
market cap. With $40 million in annual sales and $600,000 in net income, a
$3 million market cap would be more than 50% below the market
capitalization of comparable systems integration companies based on average
P/E ratios.
The Company's daily trading volume has represented approximately 10% of its
current issued and outstanding. Management suspects that some portion of
the daily trading volume includes new short selling intended to
artificially increase the supply of stock and mitigate an upward pps trend
while older short positions are covered. Given the regulatory pressure to
enforce regulation SHO, management believes that any holder of a short
position that has exceeded the regulatory time frame to deliver stock will
ultimately have to buy in at a loss, and in turn, contribute to an
increased demand for China Crescent stock that would contribute to an
increased pps trend.
China Crescent recently completed an on-demand Webcast regarding Regulation
SHO and its listing on the threshold security list. The Webcast is
available at http://www.newmarkettechnology.com/webcast_ccse_20090520.htm.
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive company updates
or to obtain more information on the Company, please send an e-mail to
ir@chinacrescent.com or call 214-722-3065.
About China Crescent Enterprises, Inc. (http://www.chinacrescent.com/)
China Crescent Enterprises, Inc. is a technology leader in the rapidly
developing Chinese market specializing today in software engineering, high
quality software development and digital multimedia outsourcing services
delivered to customers globally. At the same time, the firm is a systems
integrator and value added reseller of major global hardware brands in the
Chinese domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, China
Crescent bridges the gap between Western and Eastern business cultures to
assist western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause China Crescent's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.