Hong Yuan Holding Group (HGYN)

[DDA]

This will be an explosive ride. The float is 22.3 million. Since beginning this year 49.9 million shares were traded. Looking at it, we've seen that some of us have been accumulating for months. I suspect that Lazar and the RM company will have been buying as well on the open market, hence shares are getting hard to get.

I would not be surprised that some still have a short position on this one (Cereplast went into chapter 11 + the last sudden spike will have tempted some to short). If this is the case, it will only add on top.

If what we think will happen ... merger with a large multi billion company ... fasten your seat belt.

Don't know if we'll see the start of this today. I'm patient. We'll see. Riding free shares, so my risk is 0 (that's not a reflection of the future PPS though :)).


Note : the only 'bad' thing that can happen is a RS. I think that risk is limited as the float is so low. Now, still could happen. Reason might be as an example that the acquiring company wants to go to Nasdaq. If that happens the float gets locked for a while, which means that shares will be close to non-available (and thus will let the pps rise). So even the risk of an RS is limited in comparison to other non-RM plays.