Ok, but remember, this post is for those whom intend to hold for the long term. And, what is talked of in this post may NEVER come to be. But here is the potential.
Mr. Hailong has shown that he will NOT dilute this stock !
He has had years to if he had just wanted to make a quick buck!
That being said, and taken into consideration with his other moves to strengthen this company, he has now taken the leap into the internet selling business. In China this is still " ground floor area". So the potential is sorta like when Microsoft first came out. If you had put a few hundred dollars into it when it was only a couple dollars back when, you would have made millions ! Why, well for one they had a needed and wanted product in a just starting market! But, while that alone assured them of making a lot of money, it did not alone make them rich. What happened was as the company grew they realized that when the price went up fast buying slowed because the " BIG" boys could not and would not buy. Why? Because they were not on the big Boards and because even getting to the Big Boards, there just where NOT enough shares to buy in large groups due to such a small float, as the 401K firms do. SOOOOOO, they did a forward stock split ! And in a short period of time, being successful, the price went right back up! And again they had to do another forward stock split! This happened numerous times until after a few years of growth and price increases those whom got in early- AND STAYED THE COURSE did exceeding well!
Now CEHD has such a small float that at some point a forward stock split seems to me to be almost ineveitable! There just are not currently enough shares for the big brokerage houses to buy 100K, 150K, or 25K or 50K without large market fluctuations.
Not saying that this will happen, but if it does ,as I think down the road it may well do so, then even a 2 to one split doubles your shares, Yes it halfs your price but the value stays the same and with more shares now to trade more big buyers become open to this issue!
Now if it would split , a 2 to one split would really not give enough shares. Even a Five to one would only raise the float numbers to a small 25 million. So I would look for between a 5 to 10 forward split to start with. That puts you at 50 Million, still considered a small float.
Again, not saying this will happen, but I have been telling anyone that would listen about CEHD for 2yrs now!
Sorry about the bad spelling, hurrying, must go.
But this stock has so much potential; not to mention at while they say they will get out of the brick and mortor selling in 2yrs, that could well change too as that part of the business is growing well to! Or they could sell it and add to their bottom line.
And finally, for CEHD, just an offer from one of the larger firms to buy them out would make their share price fly!
Again, none of this may ever happen. BUT, I am here to give it a chance too!
May you all trade with success my friends,
Best to all, Danni
