Are LEXG Investors “One Flew Over the Cuckoo’s Nest”?

By Dave Gentry, President of RedChip Companies, Inc.

The American thinker and writer Tom Wolfe wrote a book called the Electric Kool-Aid Acid Test in 1968 describing the counterculture fascination with hallucinogenic drugs à la “acid” in the 1960s. The LSD culture was led by Dr. Timothy Leary, the Harvard psychologist; Ken Kesey, author of One Flew Over the Cuckoo’s Nest and the founder of the Merry Pranksters, the group of acid heads who gained notoriety for their antics on the Merry Pranksters tour bus; and of course the Grateful Dead, one of the greatest rock bands of all time. The Grateful Dead became legendary and quickly built a cult following by playing in rented warehouses in Palo Alto, California, where their followers would fill pools with LSD mixed with Kool-Aid: hence, the title of Tom Wolfe’s book (See http://obie1.homesite.net/deadcd/acid_test_files.htm). The “Acid Test” was what Ken Kesey called the experience of tripping on LSD on his ranch in the Redwoods of California.

The Pranksters’ destination was “Furthur,” and a sign on the back of the bus warned, “Caution: Weird Load.” Investors associated with the Lithium Exploration Group (OTC BB: LEXG), a $0 revenue micro-cap stock, recently spent $4.5 million for a massive promotional piece, a slick 12-page pamphlet mailed to millions of investors that caused thousands of them to suck up the LEXG Kool-Aid by the gallons. You might say the stock went “Furthur,” shooting up during a five-week period between March 18 and May 24 from $1.50 to $10.00, allegedly almost putting the broker-dealer, Wilson Davis, out of business on a short margin call.  

Yes, like the Merry Pranksters’ LSD bus tour, the stock movement was fueled by a “Weird Load,” a promotional piece that used the classic sales technique of Association, the use of quotes and research about lithium by well-known investors and financial periodicals, implying weirdly and deceptively that LEXG is around the corner from explosive growth and profits from the sale of lithium. 

(To learn more about the uses and composition of lithium, click here: http://education.jlab.org/itselemental/ele003.html)

Spread liberally and strategically throughout the promo piece were quotes from Bloomberg News, The New York Times, Forbes, The Wall Street Journal, Deutsche Bank, Ford, Nissan, BMW, and Warren Buffett. All mention lithium and/or the use of lithium in electric-powered cars. None of the quotes, of course, said a word about LEXG.

Consider for a moment the remarkable claims made in the promo piece about LEXG:  

“LEXG Will Turn the Energy World on Its Head.”

“LEXG owns properties in regions that contain approximately 22.7% of the world’s known lithium reserves…”   

“And in the LEXG’s brine-based claims, the lion’s share of the work is done by 98 oil and gas drilling rigs… where others pay $2400 a ton to extract lithium…our tiny company pays a mere $1200 a ton…”

FACT: They do not own the properties in Venezuela or Canada; they simply have options to purchase the properties based on a strict payment schedule spread out over, in some cases, three to four years. 

FACT: LEXG does not own, operate, lease or license any oil and gas drilling rigs.

FACT: LEXG has not extracted any lithium, nor will they do so in the near future, if ever.  

FACT: “A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves of their ‘lithium’ properties.”  (10Q-March 31, 2011)

In regards to both of their “Lithium” properties in Venezuela and Canada, we find this disclaimer on their website:

The tonnages, grades, and other technical data are taken from historical estimates prior to the implementation of NI 43-101. A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Lithium Exploration Group is not treating the historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and the historical estimate should not be relied upon.  

Electric Kool-Aid Lithium Claims Continued

“It’s only a matter of time before the battery-driven demand spike drives the price, and LEXG’s stock, to the heavens permanently.”   

FACT: The stock went from $1.50 to $10.00 and closed yesterday at $2.44.

The word “misleading” does not accurately describe the cornucopia of phantasmagoria the mailer creates around LEXG. On page 9 in the section titled “The Spark That Ignites the Bonfire,” the writer, Elliott Dobbs (if that is actually his name), says, “I can tell you one thing with utter confidence: Everything is positioned perfectly for LEXG.” 

To which I ask:  What about your financials?

Electric Kool-Aid Lithium Test:  Financials

This company was founded five years ago. From May 31, 2006 through March 31, 2011, it has invested $276,200 in “mining expenses.” On its most recent 10-Q, LEXG shows a cash balance of $43,000 for the three months ended March 31, 2011.  From the same 10-Q: 

The Company has been in the exploration stage since its formation on May 31, 2006 and has not yet realized any revenue from its planned operations. It is primarily engaged in the acquisition, exploration, and development of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. (March 31-2011 10Q)

Electric Kool-Aid Lithium Test: A Going Concern

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development and sale of ore reserves.

In response to these problems, management intends to raise additional funds through public or private placement offerings.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.  (March 31-2011 10Q)

Electric Kool-Aid Lithium: Management Compensation

The Company recently granted 2.3 million shares of stock to its directors, which consist of the president, the chief mining engineer and one other individual. At the time of issuance the stock was trading at roughly $7.00, so they granted themselves $14 million in compensation. This is a company that has spent a total of $256,000 in the past five years on mining expenses, a company that is years away from extracting anything from the ground.  

Conclusion 

Welcome to the Electric Kool-Aid Lithium Test and the Merry Pranksters Management Team. Investors who bought the stock at $10.00 may want to see their doctor for a prescription of lithium, a form of which is used to treat depression. 

Meanwhile, a sensible way to invest in companies in the Lithium space is through the Global X Lithium ETF (NYSEArca: LIT), which is composed of companies in the lithium industry engaged in mining, exploration, and lithium-ion battery production.

Disclosure:  The author has no position in the subject security.

Even though China is outpacing other nations in terms of vehicle sales, there is still tremendous room for growth. According to estimates from JP Morgan, the per capita ownership of cars in China is roughly 1/20th that of Europe, or 1/40th that of the United States. J.D. Power and Associates forecasts that sales of passenger vehicles in China will increase from 8.7 million vehicles in 2009 to 13.5 million vehicles by 2015, an increase of more than 55%. With numbers like these, it seems safe to say that the outlook for China’s auto industry is quite positive.

As car sales have grown in China, sales of electrical micro-motors have increased as well. Micro-motors control a wide variety of features in a car, from windshield wipers to power door locks and power windows. According to the China Electrical Equipment Industry Association, total sales of electrical micro-motors in 2008 increased 28% year-over-year to $9.6 billion. Global demand is poised to grow at an average rate of 12% annually for the next five years, attributed primarily to growing Chinese demand for consumer goods such as automobiles and household appliances.

China Electric Motor, Inc. (NasdaqGM: CELM) has established a strong presence in the Chinese electric micro-motor market with its “Sunna” brand of motors. CELM’s products are used in automobiles, home appliances, and digital equipment. The Company caters to the needs of small and medium enterprise (SME) customers, which are not met by larger competitors who focus on higher-priced motors and long-term contracts. Sunna brand motors have a reputation as low-noise, low-vibration, energy-efficient, and highly reliable micro-motors.

CELM has enjoyed rapid growth over the past five years due to expanding sales volume and increased focus on the fast-growing Chinese original equipment manufacturer (OEM) market, which produces higher margins than distributor-led sales. Revenues increased at a compound annual growth rate of 77% between 2004 and 2009. Net profit grew at a CAGR of 81% over the same period.

The Company’s manufacturing plant operated at 106% of capacity in 2009, and the Company is currently constructing new production equipment with a capacity of 24 million motors per year to meet high customer demand. In July, CELM leased a new factory in Zhejiang, the second largest micro-motor manufacturing hub in China. The Zhejiang factory will give CELM approximately 21.6 million units of new capacity for AC motors and approximately 43.2 million units of new capacity for coreless motors. The Company recently reported earnings for the quarter ended June 30, 2010, highlighted by a 13.3% year-over-year increase in revenues and a 93.2% YoY increase in net income. With China’s vast appetite for cars and other consumer goods driving the electric micro-motor market, CELM has a green light for continued growth.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Worldwide’s impressive first quarter growth was largely driven by increased sales of the Company’s AmeriSolar brand of photovoltaic modules. The solar division posted record sales of $26.21 million, an increase of approximately 280.4% from $6.89 million in the first quarter of 2009. Gross profit for the solar division was $2.80 million in the first quarter of 2010, an increase of approximately 184.3% from $0.99 million in the same period of 2009. Solar is one of the fastest growing sectors of the clean tech industry. Despite a recent solar industry slowdown, Worldwide’s solar division has continued to grow. The division’s backlog currently stands at approximately $82 million dollars.

First quarter highlights include:

• Revenues for the first quarter of 2010 were $30.33 million, an increase of 195% compared to $10.28 million for the first quarter of 2009.
• Net income for the first quarter totaled $1.95 million, up 195% from $0.67 million in the same quarterly period of 2009.
• Basic and diluted net income increased 105% to $0.39 per share, compared to $0.19 per share for the first quarter of 2009.
• Gross profit increased to $3.79 million from $1.72 million, representing an increase of 120.6% for the same period a year ago.

Although the solar division accounts for the bulk of sales, Worldwide’s global customer base also includes the industries of wireless telecommunications, aerospace, automobiles and medical equipment, representing a $60 billion market in the U.S. alone. Fortune 500 clients include GE, GM Shanghai, Tyco, Danaher, Flextronics, Smith Industries, and Andrew.

In their May 18th earnings call, Worldwide President Jeff Watson stated that the Company expects 2010 to be another record year. Worldwide plans to release guidance for the full year after releasing their second quarter earnings in August 2010. The Company also anticipates acceptance to a senior exchange in the near future.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

One company contributing to and benefiting from the rapid development of China’s growing textile industry is China Linen Textile Industry, Ltd. (OTCBB: CTXIF). Engaged in the business of production and distribution of various types of linen products, CTXIF ranks among the country’s leading manufacturers in the industry (CTXIF sells 40% of its product within China and the rest overseas to various parts of Europe).

Earlier this week CTXIF released very positive annual results with net revenue increasing 31.2% year-over-year and net income jumping nearly 63% to $6.02 million or $0.30 per share compared to 2008. This growth trend can be attributed to a recipe of a growing consumer base, continued R&D and expansion, and a brand name just beginning to emerge into the mainstream market. CTXIF expects its brand name to gain even more consumer loyalty from increased quality in its products due to the new Heilongjiang Research and Development Center.

Clearly the markets have not factored in the expected double digit growth in 2010 into the company’s current share price, currently just $1.75. With a pending NYSE Amex uplisting, CTXIF is well positioned to provide investors considerable upside.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

In a recent news release on their new abrasives line, the Company reported: 

“Two series of high-end fine precision abrasives, sized GC3000 and GC4000, were tested and approved by seven potential polishing customers, who have applied our products in the process of grinding and polishing surface of high-precision instruments and items.”

Already China’s market leader in producing monolithic refractory products for the steel industry and experiencing solid sales from its fracture proppant products used by top-tier oil & gas producers, CHGS expects their fine precision abrasives segment will become the next driver of business growth. Produced under the Gengsheng(TM) brand using a patented production process, CHGS’ fine precision abrasive products have great potential to replace traditional abrasive substances such as white-fused alumina and diamond powder due to their lower production costs and improved effectiveness.

According to RedChip analyst, Rick Grubbs, CFA, writing in the initial research report published December 10, 2009:

“Supplying precision abrasives to the surging solar industry offers new growth potential for CHGS in 2010 with the potential to double the Company’s revenue within three years. With its abrasives production line completed and its first shipment expected to be delivered in the fourth quarter of 2009, we see significant upside potential if the Company can build upon this initial order. The initial order, to a Taiwanese company in the magnitude of 3,000 to 12,000 tons per year, could already add between $12 million to $51 million in annual revenue. Additionally, CHGS’s current manufacturing capacity of 20,000 mmt per year allows for approximately $88 million in annual revenue at current sales prices, an opportunity that can be capitalized on by delivering a quality product, on time, and efficiently. Better still, gross margins of 50% or better are expected for the new abrasives product compared to margins in the 20% and 30% range for the Company’s legacy products.”

Third Quarter 2009 Highlights for the Company include:

• Sales revenue grew 16.0% year-over-year to $14.9 million
• Net income attributable to Company’s stockholders grew 39.5% to $1.67 million from the same period 2008
• Diluted EPS was $0.07 compared to $0.05 in 3Q08
• Cash on hand was $1.9 million at September 30, 2009

CHGS is expecting a strong fourth quarter and is bullish on demand from the steel and oil sectors in China. With a strong track record – revenue growth has averaged 35% each year from 2006 to 2008 – a solid reputation, capable management and stellar customers base, they present a compelling opportunity for growth-oriented investors. RedChip Visibility has initiated coverage of China Gengseng Minerals with a Buy rating and a 12-month price target of $4.50.

To receive a complimentary copy of the full report, visit CHGS Visibility Initial Research Report.

Disclosure:  China Gengsheng Minerals, Inc. is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

China Linen Textile Industry, Ltd. (OTCBB: CTXIF)

China Linen’s wholly-owned subsidiary, Heilongjiang Lanxi Sunrise Linen Textile Industry Co., Ltd., operates one yarn-spinning factory and two fabric-weaving factories at its 28,000 square meter facility in Lanxi County, Heilongjiang Province in the northeast section of the People’s Republic of China near the city of Harbin.

The Company’s yarn-spinning factory processes raw flax into yarn. Annual production capacity at the yarn-spinning factory totals approximately 1,600 tons of pure semi-bleached linen yarn and gray yarn in various specifications. The two fabric-weaving factories maintain an annual production capacity of approximately 8 million meters of fabric, including gray linen fabric, hemp linen fabric, blended or interwoven fabric (such as cotton/linen and rayon/linen blends) and semi-bleached linen fabric.

With products available in dozens of specifications, China Linen can meet the needs of its clients from domestic and overseas markets. Approximately 60% of the Company’s finished products are exported to customers in Europe, North America, South America and the Middle East. The remaining 40% are sold to customers in China.

Financial highlights for the three months ended September 30, 2009:

• Total revenue increased 14.8% year-over-year to $20.57 million in the nine months ended September 30, 2009, compared to revenue of $17.92 million in the prior-year period.
• Net income increased 31.7% to $4.30 million in the nine months ended September 30, 2009, from $3.17 million in the year-ago period; EPS was $0.21, up from $0.16.
• Operating income rose 44.9% to $5.09 million in the first nine months of 2009, compared to $3.51 million during the same period in 2008.

Gross profit totaled $5.72 million in the first nine months of 2009 for a profit margin of 27.8%, up 28.5% from $4.45 million and a 24.8% profit margin in the 2008 period. Current assets were $27.45 million as of September 30, 2009, and current liabilities were $24.36 million at the end of the prior-year period; no long-term debt.

For the three months ended September 30, 2009, the Company estimates:

– Revenues increased approximately 74% sequentially to $18 million.
– Net income from continuing operations is $800,000, or approximately $0.22 per share, a 46.3% increase over the same period of last year.
– EBITDA is estimated at approximately $1.2 million or $0.33 per share for the three-month period.
– Approximately 80% of the revenues and profit was obtained from the Company’s solar division, AmeriSolar.
– Nine Months Net Income $0.35 per share, or $1.26 million

Worldwide’s solar revenue in 2Q9 was $7.5 million, which accounted for 73% of the Company’s 2Q revenues, an increase of 128% compared to solar revenue in 2Q of 2008. On a six-months basis, solar revenue was $14.4 million, accounting for 70% of the first six months’ revenues, an increase of 149% over the solar business in the first six months of 2008. 

WEMU, appears to be penetrating into a much bigger territory in the solar markets as compared with 2008. Manufactured under the brand name of “AmeriSolar,” Worldwide’s solar modules provide electric power for residential, commercial, industrial and public utility applications. One reason for their continued growth in solar markets is WEMU’s superior solar module technology, which distinguishes the company from its competitors.

WEMU announced back in March 2009 that it had applied for eight Chinese patents in solar module technology. Worldwide’s mono- and poly-crystalline modules feature a two-bus bar cell design which maximizes the cell’s light absorbing surface area giving the modules more consistent performance. Their modules also have a weather-resistant frame constructed of aluminum alloy for endurance in rugged weather conditions and are given a double-oxidation coating for additional protection against the elements, providing for longer-lasting, more durable modules.

The Company has stated it will continue to focus on marketing efforts to increase its customer base for its solar modules in Europe and other parts of the world, including Germany, Italy, Switzerland, Portugal, France, Spain, England, Australia, South Korea, the United States, and China.

In other Company news:

• On July 27, 2009, WEMU announced that its solar division, AmeriSolar, received a new 3.8 MW solar module contract for a customer in Spain. The contract is valued at approximately US$8.8 million and has been scheduled for delivery over a six-month period: August, September, November, December 2009; and January, February 2010.
• On June 3, 2009, WEMU announced its first solar module shipment in the United States. The order was for a high-end residential villa in the West. The Company also announced they have received UL certification for their solar module products, which allows the company to sell solar modules in the U.S. market.
• On May 18, 2009, WEMU announced that Bank of the West has extended the Company’s working capital line of credit and has provided an additional line of $3 million to help finance the Company’s growing solar order contracts and business.
• On April 8, 2009, WEMU announced that it had acquired two new clients within its contract manufacturing business with their initial orders totaling over $466,000. Management expects to generate over $1 million in revenue from these two customers alone in the fiscal year 2009.
• WEMU announced that, as of March 18, 2009, it had a backlog of $52 million in solar module contracts.

Generally pegged with the price of oil, solar stocks might not seem secure; however, most industry analysts predict that sales will slow going into 2010 but stabilize in the second half of the year as more government subsidies go into effect. Government support to promote solar market expansion is particular strong in China, which continues to invest in new energy industries to meet its overwhelming energy demands.

CCID, a Hong-Kong listed Chinese research consulting firm, reported that China’s solar cell production in 2008 reached 2,000MW, which accounts for 40% of global solar cell production. China’s photovoltaic industry remains in a growth period. CCID also notes that while demand for new energy sources in China is high, “overall technical level is relatively weak” and “technical external dependence is high.”

Worldwide may have yet another key advantage with its R&D programs, which are housed in its new manfucaturing facility in Ningbo, China. WEMU works with research partners at Shanghai Jiao Tung University and Beijing Solar Energy Research Institute to continually work on improving its technology to increase the overall performance and durability of its solar modules, making them more attractive on the market.

Disclosure:  Worldwide Energy and Manufacturing USA is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

In emerging market news this week, Quantum Fuel Systems Technologies Worldwide, Inc. (NasdaqGM: QTWW) recently issued a press release announcing that its German solar photovoltaic partner, Asola, has signed an exclusive agreement to establish a joint venture in Morocco to help support the growing demand for renewable energy in Northern African countries. The agreement is intended to ensure the availability of solar photovoltaic modules. To accomplish their goals, Asola and Moroccan partner, Majdaline Holding, will implement a solar module manufacturing facility in Casablanca. The facility will have an initial solar module production capacity of 30 MW (megawatts of peak power), with a potential to generate revenues in excess of $100 million annually.

What is the current state of the North African economy?  According to the African Development Bank, the GDP of Morocco accounts for 7% of the African continent. Morocco is the fifth economic power of Africa with a 2006 GDP of $152.5 billion at PPP ($58.1 billion at official exchange rates), after South Africa, Egypt, Algeria and Nigeria.

Many developing nations are beginning to realize the value of establishing renewable energy sources either for their own energy needs or for export, particularly in light of tightening oil supplies and oil’s unpredictable price fluctuations. Morocco is no exception. According to the release, Asola has the backing of the Government of Morocco for the joint venture and both parties expect their collaboration to continue for the long-term. Some OPEC countries in the region, such as Algeria, are moving in the direction of using renewable energy technologies as a means to meet the demands they receive for oil exports. Africa has some most abundant sunshine on Earth, which means it may be exporting solar energy over oil one day.

Quantum and Asola have also reportedly been ramping up solar module production capacity in Germany and planning expansions into Korea and Italy as well. The two companies have procured 155 MW of high-efficiency silicon photovoltaic solar cells through a long-term supply agreement with Ersol Solar Energy AG; this contract coupled with additional supply contracts with major suppliers provides a steady supply of solar cells. Quantum reports that resulting sales generated by the Ersol agreement and other supply agreements are anticipated to exceed US$600 million for both Quantum and Asola. Quantum owns a 25 percent stake in Asola and will hold controlling interest in the joint venture.

The hydrogen powered hybrid vehicles will be operated by the Army personnel and refueled at a Chevron Hydrogen station located at SANGB. The vehicles were evaluated under a rigorous Hazard and Operability (HAZOP) review to ensure safe refueling and operation at the base. Cold weather performance data will be collected and evaluated as part of this project. Initially three hybrid electric vehicles will be tested at SANGB for a period of 1 year. These three are the first batch of eleven that have been ordered by the US Army from Quantum, under a contract administered by the Aerospace Engineering Spectrum (AES). Three additional vehicles will be deployed at SANGB; with the remaining five deployed at other TARDEC joint service partners around the country.

The hydrogen hybrid electric vehicles utilize the Ford Escape platform and incorporate Quantum’s advanced hydrogen system, including fuel injectors, fuel flow and pressure management systems, light-weight carbon fiber composite hydrogen storage systems and electronic vehicle management systems. The vehicles were developed at Quantum’s advanced vehicle concept center in Lake Forest California. This center houses a state of the art engine development facility including in-house emission measurement capabilities and hybrid electric powertrain development capabilities.

‘We are pleased and honored to support TARDEC in their advanced vehicle initiatives to reduce petroleum dependence, while supporting our troops,’ said Alan P. Niedzwiecki, President and CEO of Quantum. ‘This project provides us with a great opportunity to continue to showcase our hydrogen and hybrid electric technologies to the US Army. We look forward to building on this relationship to develop additional enhanced vehicle platforms for the US Army.’

According to Harold Sanborn, TARDEC’s Energy Infrastructure Team leader, ‘Our military’s energy and fuel security begins with leveraging the significant commercial and federal resources being developed that expand our options to support our installations and our war fighters while being good stewards of the environment and progressive partners to the surrounding communities in which we work.’

When searching for high-growth companies to add to your small cap portfolio, Worldwide Energy and Manufacturing should be at the top of your target list.  Worldwide Energy and Manufacturing trades at the symbol WEMU (click for full investment profile).  To date, WEMU’s subsidiary AmeriSolar has signed approximately $30 million in new contracts, the majority of which are expected to be recorded during the 2008 calendar year.  Net sales for the six months ended June 30, 2008 totaled $12.24 million, an increase of $7.01 million or 134%, compared to $5.23 million for the six months ended June 30, 2007.  This is a fast moving company with a high ceiling for growth, and is presently undervalued compared to its peer group.

When evaluating an investment, it is always vital to review a company’s management team, as you will see below, WEMU has a talented and experienced executive team that will help to continually expand the company’s success.

Jimmy Wang
President and Chief Executive Officer

Jimmy Wang has over twelve years experience in a wide range of component manufacturing. From 1996 to the present, Mr. Wang has been President, CEO and director of Worldwide Manufacturing USA, Inc. (California). He became President, CEO and Chairman of the Colorado holding company of the same name on September 30, 2003. From 1990 to 1995, Mr. Wang was the Sales Manager for MP World Manufacturing, Inc. From September 1993 to May 1996 Mr. Wang and Mindy Wang operated a sole proprietorship under the name Worldwide Manufacturing USA. In 1996, Mr. Wang incorporated Worldwide Manufacturing USA, Inc. In 1990, Mr. Wang earned a Masters Degree in Applied Economics from the University of Minnesota, and in 1982 received a Bachelors of Science Degree in Economics from the Shanghai Institute of Foreign Trade. Mr. Wang is the husband of Mindy Wang.

Mindy Wang
Secretary and Treasurer
Mindy Wang has over twelve years of accounting and financial management experience with Technology Power and Worldwide Manufacturing. From 1996 to the present, Ms. Wang has been controller and Director of Worldwide Manufacturing USA, Inc. In September 1996, Ms. Wang founded, with her husband, Worldwide Manufacturing USA, Inc. She became Controller and Director of the Colorado holding company of the same name on September 30, 2003. From 1991 to 1993 she was an accountant with Technology Power. The business of Technology Power was assembling personal computers for retail and business customers. From September 1993 to May 1996 Mr. Wang and Mindy Wang operated a sole proprietorship under the name Worldwide Manufacturing USA. Ms. Wang earned the equivalent of a Bachelors Degree in International Business from the University of California at the Los Angeles Institute of Economics and Management in Beijing and attended the Master’s program of the Business Education of the University of Minnesota. Ms. Wang is the wife of Jimmy Wang.

John Ballard
Financial Officer
John Ballard became Chief Financial Officer of Worldwide and its California operating subsidiary in September 30, 2003. John Ballard has more than fifteen years of business management, project management, and accounting experience. From January 2002 to the present, Mr. Ballard has been a financial consultant and director of Reveal Systems, Inc., a software development company and internet provider based in Longmont, Colorado. Mr. Ballard recently helped to complete the acquisition of Reveal Systems by Stewart Title in January of 2007. Mr. Ballard was the Chief Financial Officer of Call Solutions Inc., a publicly traded company, from October 1999 to November 2002. Call Solutions was in the business of opening call centers. From 1997-1999, Mr. Ballard owned and operated various food operations, Cookies ‘N’ Kreme and Lincoln Street Cafe in the Denver Metropolitan Area. In 1993, Mr. Ballard retired and he traveled until 1997. From 1988 to 1993, Mr. Ballard was Chief Financial Officer for Apple Sundries, Inc., a Denver retail chain. Since 1999, Mr. Ballard has been a major shareholder, owning 10% or more, and a consultant five blank check companies, Tabatha I, Inc., Tabatha II, Inc., Tabatha III, Inc. (Worldwide’s predecessor), Tabatha IV, Inc., and Tabatha V, Inc. Mr. Ballard holds a Bachelor of Science Degree in Management and Marketing from the University of Colorado where he graduated Magna Cum Laude. Mr. Ballard also holds a Masters of Business in Administration from Regis University.