"With a company that is so quiet how can reliable DD be completed or do you stay away from listings like this?"
That is the fundamental issue with non-reporting companies...ESPECIALLY foreign ones for which it is hard to independently verify ANYTHING.
While some like the wild west aspect of that...the reality NEVER lives up to the hype, but folks trade on the hype anyways. But something like this should never ever be looked at as an "investment". Just asking for your money to be taken away.
What if they make the move to up-list? Is that a driver of value all on it's own?
"Uplisting" certainly can help with the perceived value of the company. And MANY MANY OTC stocks talk about it. I small few actually make it, but many never stay there.
The value comes from the fact that as an SEC reporting company with Audited financials and meeting the threshold from a financial perspective to get LISTED on an Exchange does correlate to "value".
But just talking about it does not at all.
The company would first have to become an SEC registrant and that is not a trivial process...especially for a company ostensibly based in China.
Second, the company would have to meet the listing criteria for the target Exchange and we really have no idea if they do other than perhaps the current pps is close to the initial listing criteria, but that is the least of it as any RS can get them there.
Whether PCAOB audited fins would live up to the hype, let alone the listing standards...we would have to wait and see...IF they ever showed up.
But the bottom line is, if something can't be independently verified it is meaningless for a non-reporting penny pink.
