GuanHua Corporation (GHGH)

[Stock Lobster]

A wild theory about what we're witnessing...

personally, I think what's happening is this...

Augrid is raising money right now through equity financing, through HDSN, BRGE, MICA and VNDM..all investment bankers famliar with this kind of funding. Augrid has increased the o/s by a billion shares this week to raise this cash.

The money is being used to complete the acquisition of some newly privatized Chinese agencies. This is why the CEO is on his way to China to finish some business. I suspect they may be utilities, or other "bricks and mortar" type businesses with a long history of steady revenues (and good growth projections given chinese exponential growth rates) If they were to complete just two such acquisitions and consolidate their financials, that's where AUGC might well meet the revenue requirements to move to a higher exchange. Not that I know this for a fact, just a suspicion that getting off the pinks is a #1 priority for them. If your goal is to be a holding company, you need to be able to raise capital...and it's difficult to raise money as a pink...

At that point, I suspect there may be a share reducing split, to raise the PPS to meet the $$$ requirement of another exchange. I think the increase in the OS is a short term necessary evil, but billions of shares are not in the picture long run...esp if they are serious about getting off the pinks.

Currently the yuan is still pretty tightly pegged to the dollar, so the exchange rate is still favorable for acquisitions. As the yuan is allowed to float more freely, it can only benefit the US holding company...increased earnings, everybody happy.

From my readings the past year, the pressure on the Chinese to allow their currency to float is increasing from all directions, and will probably take place within the next two years...bad news for any new acquisitions, but great for those already holding and receiving monthly revenue streams in revalued yuan.

This is how I see it, at least....