JB and ZJMY Holding Co (JBZY)

[4toSchool]

IMHO. By their very action, it seems clear that the Chinese management wants to trade the stock on NASDAQ. If they convert their preferred class of stock and wipe out the current stockholders, in perhaps a small way it would hinder their goal of being actively traded on the board.

Part of me thinks that we're owning stock in JBZY for about a penny, the stock isn't being diluted in any significant manner, so I didn't buy the stock from JBZY, rather I bought it from some other stockholder. Therefore, the company didn't receive a dime of my investment. The Chinese management is the group putting assets in to JBZY. Why should we gain a significant ownership in the assets that they transfer into JBZY? Said another way, if I owned a company and was going through the process of a reverse merger, I wouldn't be too concerned about those traders that hadn't put a dime into the company. When I transferred assets into the company to protect my assets I would exchange preferred shares for common shares in an amount equal to the value of the transferred assets.

As we ride the coattails of the Chinese company as they pile assets into JBZY, hopefully us common shareholders will see a decent return on the shares we've bought, but I'm not counting my chickens before they hatch.