SOURCE: TheSUBWAY.com

October 03, 2007 09:48 ET

Emerging Equity Alert for Wednesday, October 03, 2007: RHGP Given $5 Price Target by Market Harmonics!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Peter Antipatis of Capital Research Group Inc.

WESTON, FL--(Marketwire - October 3, 2007) - TheSUBWAY.com: Announces the following stocks to its Breaking News List: Renhuang Pharmaceuticals, Inc. (OTCBB: RHGP), Franchise Capital Corporation (PINKSHEETS: FCCN), Baidu.com Inc. (NASDAQ: BIDU), KongZhong Corporation (NASDAQ: KONG).

Renhuang Pharmaceuticals, Inc. (OTCBB: RHGP) was featured today in an independent research report by Tony Carrion of Market Harmonics, including an 'Initial Buy Rating,' and a '12 Month Target Price of $5.00.' Highlights from the report are presented below:

Market Harmonics is "initiating coverage of Renhuang Pharmaceuticals with a preliminary rating of Buy, and a 12-month price target of $5.00. Taking into account the stronger seasonality, continued improved cost efficiencies and the ability to bring more production online, we think it not unreasonable for Renhuang to have a slightly stronger finish for FY 2007 as it begins to take advantage of stepped-up production going into the end of the fiscal year (October 31). We further believe it possible for the company to achieve twice FY 2007 revenues, as it will be able to double production output once the resources of the Qingyang Herbal Extracting Factory are fully put online. Because of the reorganization and change in fiscal year that Renhuang underwent when it became a U.S. publicly traded company, the nine months ended October 31, 2006 provide our benchmark for growth estimates for balance of FY2007 and projections for FY2008."

"As such, we are estimating that gross profits for FY 2007 will be approximately $16.5 million, and that net income will be approximately $13.5 million, representing respective increases of 37% and 22% over the nine months ended October 31, 2006. For FY 2008, and since we are expecting a doubling in production levels, we are forecasting gross profits of $25.5 million, and net income of $19.3 million. If achieved, these would respectively represent increases of 65% and 70% over FY 2007. Note that per Reuters data, current gross margin projections for the biotechnology industry are 70%, and our projections are thus consistent with that outlook."

At current share prices, the stock is trading at 5 times CURRENT earnings! And with cash on hand of over $9.5 million, adding in short and long term assets, the stock is approaching book value! Investors should take heed, other stocks in this space are carrying PE's of 20, 30, and even 40+ times earnings. Valuations like these may not last long!

Other stocks highlighted include Franchise Capital Corporation (PINKSHEETS: FCCN): Hot Stocks List, up 23% on 17 million shares, Baidu.com Inc. (NASDAQ: BIDU): Hot Stocks List, up 12% on 14 million shares, KongZhong Corporation (NASDAQ: KONG): Hot Stocks List, up 15% on 13 million shares.

TheSUBWAY.com's Daily Stock Updates:

TheSUBWAY.com, a leader in corporate communications and finance, highlights stocks that are in the news, have traded high volume, or experienced a large change in price in recent sessions. The aforementioned commentary is not meant to be indicative of a "long term" view of any of the companies listed. For more go to http://www.thesubway.com.

All material herein was prepared by CRG Partners, Inc. (CRGP) based upon information believed to be reliable. The information contained herein is not guaranteed by CRGP to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. CRGP is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.thesubway.com or mentioned herein. CRGP has been compensated by third party shareholders with shares or with cash from the company on behalf of one or more of the companies mentioned in this opinion. CRGP has been compensated twenty thousand shares for RHGP, and expects to receive an additional twenty thousand shares in future installments. CRG was previously compensated fifty five thousand shares for RHGP, and has sold those shares. CRGP may sell its shares for less than the target price given in this opinion. In addition to any compensation mentioned above, additional compensation can be equal to ten percent of any newly issued or registered securities of the profiled companies. CRGP and its web site are operated under a license from Capital Research Group, Inc., TheSUBWAY.com Inc. and One Source Solutions Inc. (Licensors) and CRGP is not the agent of any of the Licensors and CRGP is solely responsible for all statements made herein. CRGP's affiliates, officers, directors and employees intend to buy and sell additional shares in any company mentioned herein and may profit in the event those shares rise in value. CRGP will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.

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