Htds is the holding company for a few small but very aggressive biotech/pharmaceutical companies.  The key holding is mellow hope pharma of China.  This is one of the largest exporters of biological vaccinations in China.  The export to many countries in the pacific rim, South America, and Central America.  They have many products including vaccines for  hepatitis and HIV.  The most compelling argument for this company however is that there are one of only two Chinese companies that have been approved by the government for an H1N1 vaccine(Swine Flu).  The other subsidiary is Slavica Bio Chem which heads in the mind up cancer project.  This company is aggressively seeking groundbreaking cancer solutions, multiple sclerosis research, and advances in treating massive brain trauma. 

1. Mellow Hope is one of only two approved companies in china that have received clearance by the government to produce and administer the H1N1 vaccine. The have a current large order from the Chinese government(20 million doses) and management has stated that in mid October they would be announcing possible contracts with several other countries.

2. Slavic Bio Chem has groundbreaking cancer research. Today the company announced that they are of the opinion that they have isolated the gene that specifically causes lung cancer. This could be one of the first indications to support the argument that many medical professional have. That cancer is present in everyones body, that somewhere there is a mechanism that triggers it. Isolating the gene that may cause a specific cancer gives tremendous insight on how that should be treated. Slavic Bio Chem is currently in talks with a larger Canadian Bio company as either a partner or a buyer to further their studies.

3. Continuing on number two this would benefit current shareholders in that management has decided that the sell would be distributed to current shareholders in the form of a dividend. If this does not happen the company is also considering spin offs and awarding current shareholders a stake in the new company as a stand alone.

4. The companies current market cap is about 30 million. If they were to reach a similar market cap of the only other approved H1N1 company in china, Sinovac, the company would trade at .05 to .06. This alone with no other stimulus is a 400% increase over current share price.

5. The company has faced many current obstacles that have depressed the share price. Pink sheets has put the company on "warning" or caveat emptor because the company has launched its own investigation into naked shorting of the stock. Pink sheets sees this as a negative because it gives the impression that all facts may not be present to investors. This is ludacris. Naked shorting is a part of the entire market, totally ignored by the SEC, and a few companies have to pay the price for protecting themselves. Why is this good? All the good news that has come out of late has caused no movement because of the "concern" with this company. Founded or not it is a deterrent.

There are several questions that you need to consider when investing in a micro cap biotech. Does the company provide something that nobody or few others can? Is the company involved in groundbreaking research; are they searching for answers that have yet to be explored? Can they get to market with their product?. For me HTDS is a yes for all of these questions. We could talk financials forever. All small biotechs are not profitable, have a huge float(outstanding shares), and struggle to keep their "financial heads" above water. What you are gambling on is the future. Is what they are doing or creating so important that it will not be allowed to fail. Keep in mind biotech giants such as Roche, Bayer, and Genentec and one time were pink sheet or sub one dollar stocks. You can invest in them now. You can probably, if you pick the right entry point, make 15 to 20 percent. But the real money makers in these firms saw promise it what was going to happen before it did. You want to invest in small biotechs? Develop a gunslinger mentality and an iron stomach because you will be tested to your limit. As always my disclosure..I am long HTDS at .0123. Happy stock hunting!!