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I agree, I was trying to make the case that the company is NOT a scam, but rather has good prospects. We shall see!
Jim
It seems cross-listing is what we are hoping for, not dual-listing. Dual listing is when a company operates in two countries and the separate entities list separately. Cross-listing is when one company lists on more than one exchange.
From all I see it is very legal and very common. And correct me if my thinking is muddled, but if valuations are higher in HK (which they should be) then it would seem to be be in ENHD owners' best interests to allow both US and HK markets to trade rather than buy out US shareholders at $2.00. All the while US traded shares would be pulled up in value by the higher price in HK -- this is what they have wanted all along. Doing it this way the company hangs on to its $40 million cash and still solves the problem of low valuation, which allows them to raise cash and expand.
If they do buy out US shareholders and, for some reason, HK valuations don't come up to expectations, they're out $20 million cash that they really need! IN NEITHER VALUATION CASE IS BUYING OUT US SHAREHOLDERS A GOOD IDEA! And there's no reason to go private because raising capital by borrowing would be too expensive and interest payments would hurt their profitability.
In other words, I think the probability of a cross-listing (not a dual-listing) is actually pretty good because it's in their best interests to do so . . . unless my thinking is muddled. Assuming HK valuation would be higher than in the US, how else could it work out better to their interests? After all, the only interest that matters here is THEIRS. What have I missed?
tienlinn: patience will be rewarded. Like Buffett says; the market is in the business of transferring wealth from the active to the patient!
I used to follow the conventional wisdom of letting profits run and cutting losses short. Result? 80% losers. I used to try to time the market; result: 80% losers. Since I am not emotionally equipped to trade using conventional wisdom, I now use my strengths--which are analysis and a reluctance to sell at a loss--to my benefit rather than try to do something I'm not capable of doing. I now invest very carefully and know exactly why I'm in. Once I make that decision I will sell at a profit or I will write off the 100% loss after the company goes out of business. This approach can only be applied to stocks with low prices and huge potential. Result? Problem solved! Obviously I don't invest too heavily in any one deal.
It may take a year, but I think this one will pay off. Like the colonel says in the cartoon movie "Spirit" I watch with my grandson: "...time, discipline, and patience are the three great levelers."
Thanks for your comment tienlinn. Most companies have to struggle for sales, in this one the new CEO is bringing them with him! And he wouldn't do that unless he thought he could do better than keeping them in his pocket....we shall see.
Exactly......
Doing nothing is not the most likely, and stealing the shares does them no good if they remain valued at .38. Equity financing is a way to virtually print money; if they are upset about a $2 listing they certainly won't stand still for a .38 listing. So to do nothing means they can't issue new shares in exchange for "free" money and get anything worthwhile from it.
They simply must get the share price up or they can't expand as they seem to want to. It is in THEIR best interest (no one cares about ours, I get that) to either swap or buy out US shares so they can get on with the process of getting their valuation higher. With $40 million cash just buy out the US float with $20 million and IPO in HK at even as low as $5 -- their millions ahead! I have to believe this will have a good outcome by simply waiting until they do what's in their own best interest...
It's not like this is a shell, it is a going concern of some significance in China. I'm with Bradford; glad to hold at this time and be patient. I even bought a few more shares earlier in the week. If I'm wrong, screw it. Rather hold something with some real potential than a JNJ or something that might go up 5% . . . and might go down 15%!
Someone recently said this stock was a scam because the CEO sold his own holdings to the company. If it is a scam, that's not the reason. Think about it. Let's say, for example, he makes $200k a year. He buys the "shell" IDEH, installs himself as CEO, and then sells his assets to them for a price "to be determined later." Now his annual earnings will show up as IDEH earnings at some multiple (PE). Then the CEO, Mr. Lieberman, will sell equity shares into the market and use the funds to pay off the cost of the acquired properties, i.e., pay himself. But he stills owns a boatload of IDEH shares so he will indirectly still own most of the properties he sold! For all this to happen IDEH shares must go higher.
If it takes longer than normal to pay off the acquisitions so what, it's money he owes himself, so he's going to be patient. Since it is in his interest for the stock to do well it probably will. And he won't bring the company down for money owed to himself because he'll get nothing for doing it.
In other words, our interests are aligned with his, that's why I think it will eventually pay off. I bought more the other day at .010. Feel free to ridicule me profusely for being gullible if I'm wrong.
Jim
The problem of little chat, as I see it, is little new information. I can't find out how much in sales Tactical Air Support will bring to the "shell" TADF once the merger is complete (if it actually goes through). I can't find out the sales potential of TADF, who says they do this and that, but don't seem to have any revenue. What's there to talk about until something breaks?
Jim
Thank you Admiral, it seems that Asia Time operated, even profitably, for a year and a half or so after the Reverse Merger concluded by WestPark, and has since been sitting idle. That's going on a year. So it seems that if something is going to happen it would have by now, unless the ETF owners you mention now have plans. But how does the Bank of Scotland enter in if the "shell" is owned by an ETF? None of this make too much sense to me . . . any education on these issues would be helpful!
Jim
Perhaps you can help me understand this. I can't see any plans that don't involve a reverse merger being of any value to the new owners. The company is now a shell with no revenue. Of what value could it possibly be if they can't use the ATYM exchange listing to provide some value and leverage it? I guess I don't understand what the original plans were. Do you know what they were?
I think what stills99 is asking is how would dual listing work?
1.) Is it even legal
2.) Would another exchange do it?
3.) And if it is done, how good is the link between shares still traded in the US and those traded in either HK SG or China where they might be listed . . .If there is a "good link" wouldn't arbitrage be almost certain?
If dual listing is even an option, it would seem to beat taking a $2.00 per share offer, if it came, which is about all ENHD would feel obligated to pay given where the price was when they destroyed the value.
183,000 shares traded so far today, 30,000 each of three days last week. Something, or nothing?
I haven't seen anything on this, but does this "shell" have clean enough records and no outstanding investigations such that it could be purchased by a private company wanting to go public (i.e., reverse merger)?
What else do you know about ATYM that you can share; I'm in the dark!
If Mr. Shi is wanting to expand, the only way to get that kind of money is by selling stock; borrowing it would kill them. He doesn't want to sell shares at .38, or, apparently, at $2.00 or he wouldn't have delisted ... he would have issued some shares.
Since we can't expect anyone to do what's in our interests, isn't it in his interest to buy back the float and relist somewhere at a PE of even 5, which would put the share price at around $6.50? This isn't profit for us, it's profit for him and others who will hold tight.
I am optimistic that, while detesting it and cursing the darkness while doing so, ENHD will buy back shares because it is THEIR best interest to do so. That's the only reason I'm hopeful.
It would be my luck, though, that some other exchange would just say "to hell with the current owners, they don't have jurisdiction here, just issue new shares and forget about them." Of course that's illegal, but what's that got to do with anything these days?
What do you make of the recent three days of 30,000 volume and the price rising up to 2 cents?
alanthill, bryoz, and all, I'm with you. Only own 3000 shares but I will dance around a fire naked watching them burn rather than sell them for .30. If doing the right thing won't motivate Shi, then we must find a way to shame him into doing it. Honor is supposed to matter in Asia . . .
Who has pockets deep enough to take out a WSJ ad calling him out? Are there other ways to remove his cover so that his actions are revealed and become an embarrassment to him? If we were bankers, the SEC would have stepped in by now!
Jim