SUIP(.0133)...shell......
6.9M shares outstanding
5.5M float
$92K market cap
I have a large position built at a 3-cent average. Although SUIP may have a large float (from a percentage standpoint), it has been my experience that accumulating shares can be a bit more difficult than a person might expect. Momentum players who entered the stock in the past year found that it can move pretty quickly on relatively light volume (sub-penny to .15+). It wouldn't surprise me if another momentum-type of run develops sometime during the next year or so.
I consider prices under 3 cents to be particularly attractive for entry/accumulation because it helps provide some "valuation protection" if management decides to increase its insider ownership percentage. For example, if management increased its ownership up to say 75% or so, the valuation of the shell is still under $700K at 3 cents (22M shares x .03).
The two brothers (CEO Xuguang Sun and CFO Tim Shaojun Sun) who control this shell are the owners/management of Tianxing Lighting and Electric. This mainland China company is involved in lighting-related products (bulbs, fixtures, etc), primarily manufactures products under the "Visun" brand. I am not sure if the brothers are also involved with the parent company (Visun Lighting Group). Originally some years back, they were planning on bringing the lighting company public through the shell (I think it does about $60M in revenue per year), but I believe they are now focusing their merger/acquisition attention on other companies/assets.
SUIP filed its 10-K on Friday. There may or may not be any significance to the timing of that filing, but I found it a bit interesting that the report was filed 5+ weeks earlier than it normally is done (usually SUIP files around the last week in December).
Also, for the past 8 quarters or so the CFO has been reserving some variation of the "Sunrise Mining Corporation" at the Nevada SOS site, possibly indicating the potential interest the company has in acquiring mining-related assets or businesses. The last reservation expired at the end of October. The CFO in the past has allowed some lapses in the reservation, but it will be interesting to see if he renews the reservation this time. If he doesn't renew, that could be a potential indication that something might be taking place or at the very least the company might be focusing its attention on other industries/sectors.
