Kiwa Bio-Tech Products Group Corp (fka KWBT)

[Dr PennyStock]

I sent this email to the IR person 5 minutes ago.

This is just the most important parts. I deleted some sentences:

Dear Ms. Xiao,

On this PR https://www.otcmarkets.com/stock/KWBT/news/Kiwa-Bio-Tech-Announces-100-Million-RMB-Loan-Program-To-Boost-Agriculture-Production-in-China?id=258677 the company said this:

At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.

As a trader/investor with 23 years of experience, I know that the IR firm/person tend to use this kind of language to "pump" a little the PPS. Even if this is usually done with the best intention, it is wrong when/if you are not 100% sure this could happen till that deadline.

Why? Because even if in this case, it was not exactly a deadline, because you used the words "we are striving", the market sees it as a deadline, and, when nothing happens, the PPS drops, causing the contrary effect you wanted. This is because people loses confidence, and sell.

Also, this damages the credibility of the company because until now, 18 days after April 30, the company didn't say anything about this, and this is crucial. To pay all the debt notes in cash, and be toxic debt free, is a dream of any OTC company, so the market is waiting for this news.

The silence killed completely the momentum, and is damaging the company's credibility. Consequently, people are selling and the PPS is going down.

It would be great if you could say something about this in response to this email, and even better if the company could release a PR saing what is happening. It was a delay caused by the situation with Covid19? OR something else? Just say the truth, as the truth never hurts. It's the best because the market understands that sometimes delays happen, for many reasons, but, to be upfront and honest is always the best approach. And communication is very important, specially when delays happen.

I also noticed that KWBT usually releases PRs way before the market open. Again, my experience of 23 years tells me that this is absolutely wrong, because when the news is good, it can cause a gap up in the daily chart, so the price begins to go up, but, then stops, because of the GAPs theory that says that all the gaps need to be filled. And really about 95% of all gaps are filled in the next days.

This kills the momentum, and usually the PPS doesn't increase so much as it would if it was not the gap to fill.

Here you have some information about gaps: https://school.stockcharts.com/doku.php?id=chart_analysis:gaps_and_gap_analysis

So the best is always to release news about 30 minutes after the open of the market, so this will not cause a gap on the daily chart, and the PPS can run freely without any down forces pulling it. This will be good for you, the company, and all us investors. It's a win win win situation.

Please don't take this wrong, as the intention was to criticize but in a constructive way, because I am a chartist too, and in 23 years, I analyzed probably over 600,000 charts, so I know how bad are gaps in the charts. I saw hundreds of times gaps killing a good run.

I am obviously an investor on KWBT, and I am waiting for this news, so the PPS could increase to .14 - .25 in the short term, at least.

Have a nice day, .................


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