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There is a saying on Wall Street: "Don't buy CHEAP Chinese RM smallcaps or you might find yourself with 3 month trading halt & open on the pink sheets"
“There is an old joke, widely told among economists, about an economist strolling down the street with a companion when they come upon a $100 bill lying on the ground. As the companion reaches down to pick it up, the economist says ‘Don’t bother — if it were a real $100 bill, someone would have already picked it up’.”
Lo in Lo (1997)
Yes, exacly, wouldnt make any sense to sell at these ridiculous low prices. A good idea would be to buy.
Actually, there are a ton of sellers. They keep dropping the bid.
P/E around .41 & no volume. Most people would say something is wrong here.
Because of the 40 : 1 RS & drop in price, most long term holder won't sell (I'm guessing) because they will get so little.
Nobody is buying either.
because no one is selling!
"Looks like" don't know for sure.
Why doesn't management or somebody buy these "undervalued" shares.
Not a scam at all, just no believers. The stock used to be a $5.00 stock before being beaten down with all other China Stocks.
GHII has almost no float and barely trades. Most everyone that has shares is holding them.
-- Adjusted net income excluding non-cash gains and expenses was $9.2
million, or $4.62 per fully diluted common share as compared to adjusted
net income of $6.6 million, or $3.99 per fully diluted common share, a
year ago
http://www.knobias.com/story.htm?eid=3.1.8e3fa856f6061786d02c3aa7af470da22668492684426b9568bd9103ea9111ff
Looks like a scam to me. Company makes 4.62 per share & stock trades around .50.
New CFO hired.. cant tell if its good or bad. He has experience with both us and chinese public companies.
http://sec.gov/Archives/edgar/data/1111284/000116169711000913/form_8-k.htm
If this stock was under valued the management would be buying.
Like JGBO, no real value in the stock, just on paper. But try to turn that into CASH.....get it?
Thanks. Understand it better for now.
It has a contractual relationship similar to most other US listed China stocks. VIE structure or it is also called a SINA structure since that company pioneered it ten+ years ago.
Does anybody understand well about the contractual agreement between GHII and Jin Ma Companies?
Yup....this sucker is cheap, will get cheaper & be cheap probably forever!!
Stuff like this is why the PE is so low & may be FOREVER low:
http://china.fixyou.co.uk/2011/07/china-stock-obituary-2011.html
"No doubt not all are scams, but after about ten of them have been investigated, this causes most all of them to lumped into the same class"
I agree completely ... we'll just have to wait and see how this works out in the longer term... altough we disagree, thanks for the thoughts.
Chinese Small Caps Get Even More Hilarious
http://www.fool.com/investing/international/2011/06/24/chinese-small-caps-get-even-more-hilarious.aspx
No doubt not all are scams, but after about ten of them have been investigated, this causes most all of them to lumped into the same class.
Sorry, Should of put "Almost nobody" Just look at Tute support on most Chinese SMALLCAPS.
Just my opinion, your free to disagree.
http://www.fool.com/investing/international/2011/04/25/terrible-news-for-chinese-small-cap-investors.aspx
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63424342
"Nobody trusts Chinese smallcap financials. Many have been halted & delisted to the pink sheets. SEE APWR, PUDA, ETLT, many more"
So suppose 50% of the unhalted stocks to date become delisted and the other 50% are legit. Those with PEs of 3 or less could very well be ten-baggers over the next years... would still do very well.
What % of the companies in the space do you think will be premanently delisted? If you are not sure, how can you make such a strong claim?
The stock is garbage & a disconnect from the company.
Nobody trusts Chinese smallcap financials. Many have been halted & delisted to the pink sheets. SEE APWR, PUDA, ETLT, many more.
I see nothing wrong with this company....
Major Direct Holders (Forms 3 & 4)
Holder Shares Reported
YANG LIANKUAN 404,773 Dec 10, 2010
WASSERMAN ADAM C N/A Dec 10, 2010
Insider Transactions Reported - Last Two Years
Date Insider Shares Type Transaction Value*
Dec 10, 2010 WASSERMAN ADAM COfficer 10,876 Indirect Acquisition (Non Open Market) at $3.45 per share. 37,522
Dec 10, 2010 YANG LIANKUANOfficer 39,880 Direct Acquisition (Non Open Market) at $3.45 per share. 137,586
Jan 5, 2010 YANG LIANKUANOfficer 32,143 Direct Acquisition (Non Open Market) at $2.80 per share. 90,000
Sep 10, 2009 YANG LIANKUANOfficer 57,000 Direct Acquisition (Non Open Market) at $4 per share. 228,000
Data provided by EDGAR Online
When a PE is this low for a long time....something seriously wrong.
I think TSTC is likely a great buy! GHII has greater risk of going dark BUT the PE is so rediculously low that even with a 50-50 chance of going dark, it was a good risk-reward profile!
I have no idea. You never know when it may happen, if ever. But enough of them have happen to be very cautious.
One sign that seems good for Chinese smallcaps is when insiders buy a big position in their own stock like TSTC:
http://finance.yahoo.com/q/it?s=TSTC+Insider+Transactions
What percentage chance do you think GHII will be halted for significant issues?
I'd be VERY careful holding ANY Chinese smallcap because of a trading halt, JGBO is the latest:
http://finance.yahoo.com/q?s=jgbo&ql=1
on the plus side today. GHII sure doesn't follow
the general market.
This stock still stinks....I mean the least they could do is get off this Mickey Mouse bulletin board. Man, what a total disrespect for SH's
You would think so....but then again maybe this one of those that will be halted for 3 months & open on the pink sheets at .001. That's what it's acting like.
It may trade like crap but the company is certainly worth something. If I'm reading the info correctly, we just booked $8 million in income before taxes which is the equivalent of $4.00 per share!
News article about Gold Horse from 2009 blog.sina.com.cn/s/blog_61dd21b80100fvrp.html about group of women who couldnt get a housing license for a home from Gold Horse? Its definitely the company, the picture at the bottom is of the women sitting on the roof the company's office.
Looks good to me
One of these years GHII will have it's day ............I hope.
The past two months have brought a spate of de-listings and trading halts for these companies -- at least 24 according to the SEC. Forbes' Walter Pavlo recently detailed a smattering of them:
http://finance.yahoo.com/blogs/daily-ticker/invasion-chinese-reverse-mergers-under-attack-josh-brown-121928402.html
China Electric Motor — Shareholders lawsuit filed claiming underwriters violated federal securities laws by issuing materially false and misleading information.
China Natural Gas — Class action lawsuit alleges directors and officers issued materially false and misleading statements. CFO of company resigned in late 2010.
Duoyuan Printing — SEC investigating company for fraud, NYSE delisted April 4, 2011
China MediaExpress Holdings, Inc. — Deloitte quit as auditor because "no longer able to rely on the representations of management". CFO resigned. Stock trading halted March 11
China Agritech — Shareholder lawsuit pending. Dismissed its auditor Ernst & Young.
China Sky One Medical — Under investigation by SEC.
Orient Paper, Inc. — Reauditing previous financials due to license issues with previous auditor (Davis Accounting Group)
"The common threat is revenue exaggeration," Brown says. "It's an absolute joke. To a certain extent we are being invaded; we are under attack."
1.35.....with a .30 spread. Good luck trying to get traders into this. There really is very little market in the stock.
NT 10-Q Filed - At least we know the company is alive :)
www.sec.gov/Archives/edgar/data/1111284/000116169711000410/form_12b-25.htm
If you want to play this space, there are much better opps on NASDAQ, with ton a more liquidity.
I would consider buying GHII, but only if they uplist to AMEX/NASDAQ which may never happen.
I learned my lesson in JGBO (GTEC). Sold at split adjusted .38. Is now .10. 4.06 divided 10 = .10
Okay, I understand. I just don't see the prices you've been mentioning as possible with 2 m shares outstanding. This is near .03 pre-split at 1.30. My buys in the $2.00-$3.00 range are a bit underwater here, so you're correct in your assumption of me being an owner. Holding off on the buys for now.
This space is certainly out of favor. We'll see how it all goes down (maybe up?). Sentiment can change in a hurry.
Good luck with your trading.
HC
"Why do you continue to post here if you're not even aware of the fundamentals?"....
Well, I knew the PE was very low, now it's ridiculously low....like the market thinks it is a scam. I wouldn't necessarily view this as a buying opportunity, but as a warning that something is gravely wrong.
Probably the difference between me & you is: you are looking to buy here or own some, & I'm just following to see what the end is. I learn much by following the history of companies , as history many times repeats itself.
To answer you question: I follow hundreds of stocks & don't have the time to know every detail.
Thanks for that- I wasn't aware this one was perceived as such a turd until your reminder. Why do you continue to post here if you're not even aware of the fundamentals? I think it goes without saying that uplisting is out of the question in the current environment. Things have changed dramatically in the past three months.
The characters involved here and their unscrupulous past is more than priced in.
With around 2 million shares outstanding, I don't expect this to dip much lower.
Well I didn't take the time to look into all that.....that to me is even worst because there is really NO RECOGNITION of this in the stock price, & this has been going on for YEARS.
Well...I wonder how they are doing on their uplisting to a exchange? You'd think you would of heard something by now.
The current pe is about .30 with earnings of 4.39. At a price of .10 the pe would be .002!!! But even more amazing is the price to book ratio of .07 and the price to sales ratio of .05. The company expects earnings growth in 2011 to be equal or better than 2010.
As a real estate development company one would expect earning to be erratic. A better measure of growth would be book value which has grown from in 2008 21.6 mil to 30.3 to 36.6 in 2010. Latest quarterly book is 40.7 million.
http://www.fixyou.co.uk/tracker_srm.php?s=GHII.OB
considers this a high risk stock because it is OTC BB, a reverse merger company, no analyst coverage and a high increase in accounts receivables.
On the other hand the reverse merger took place 5 years ago and should no longer be considered a factor. The company has a reputable auditor.
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Chinese links-
Company news- http://www.114news.com/build/18/1818-type-blog.html
Company profile- http://www.6jc.cn/sheji/jz002115011500242.htm
CEO profile- http://www.lingjun.com/resume/?k=TWpNeE5URT0=
http://www.goldhorseinternational.com/images/powerpoint/GHI-PPT-07-24-2007.ppt
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