Southern Home Medical Inc (SHOM)

[horst]

SHOM extensive DD post with screencaps and links

Southern Home Medical Inc.
Pink “no information” as of 1/22/21
>>Up to date on last two years of requisite Annual and Quarterly Reports
>>Posted Q2 and Q3 2020 Quarterly Reports on 12/28/20, and before that posted almost three years of delinquent reports on 9/23/2020



>>Verified Profile 9/2020
>>Company needs Attorney Letter to attain Pink Current status



70% (2.8B) of Outstanding Shares are Restricted and owned by CEO Yong Li
Unrestricted shares: 1,162,612,049



Zero convertible debt, zero promissory notes:



No dilution since Sept. 2018



Accountant is an IRS-authorized Acceptance Agent, which suggests imo that SHOM is at this juncture essentially a Chinese company (domiciled in WY, virtual office in NY) and an international tax payer:



The latest quarterly report says explicitly that “The company has been planning to provide medical health consultation and medical equipment to customers worldwide and expects to generate revenue in the near future.” They specify, “We do not rely on financing from outside sources to provide us with capital,” but also state they have strong relationships with banking partners.




SHOM basic information:
SHOM was initially incorporated in Nevada in 2005, re-domiciled in Wyoming in 2016, and reinstated in May 2019. There was a change of control in Q3 2018 to current CEO, Yong Li, whose name also appears as Li Yong or Dr. Lei Yang. FYI it’s common for there to be such spelling variants in English versions of Chinese names, and in China, surnames come first—the opposite of western name conventions. English versions of Chinese names sometimes put the surname first, other times last. SHOM’s business address changed to Wall Street, NY in 2018, but don’t get excited about that—it’s a virtual office address, which is normal for businesses whose execs reside overseas. Though they were dark in terms of OTC Markets updates until Sept. 2020, assorted updates were made at Wyoming SOS as recently as Jan. 2020.

Connections to China
SHOM’s former management PRed projects with China in 2016 and 2017 before the company underwent a change of control in 2018 and then largely went dark until the Sept. 2020 reports were submitted to OTC Markets. I’m not very concerned with the particulars of old management or old PRs, but it’s relevant imo that SHOM has been a China-focused company for many years.

New DD
I haven’t seen the following posted anywhere ever: not on ihub, not on twitter, not in US press releases, not at OTC Markets. It took some perseverance to find it.

SHOM’s website listed on OTC Markets and their press releases through 2017, http://www.southernhomemedical.com, is down for now, and they haven’t issued official press releases in the USA that I can find since 2017. There’s no website listed on the Quarterly or Annual reports posted over the last year. But there’s *another* SHOM website that’s been active since shortly after Yong Li and associates took over. It’s been hiding in plain sight but out of reach of normal Google searches—I only found it because in the process of exhausting all search options, I searched for just the company phone number, and lo and behold….

SHOMUSA.com



The SHOMUSA.com site was registered December 25, 2018. It contains news items from late 2018 and early 2019 including meetings and proposed partnerships with giants of Chinese healthcare. SHOMUSA.com doesn’t show up in Google when you search for “SHOM” because the only instance of “SHOM” on the site is a *graphic* rather than text, they use the abbreviation “SHM” instead of SHOM in some news items, and clearly they’re not leveraging search engine optimization. But this is indeed a website for SHOM: the company phone is the same as the OTC Markets profile and assorted reporting, the investor relations links go to SHOM’s OTC Markets profile, etc. Here’s the Whois data showing it goes back to 2018 and was last updated 12/15/2020, just 10 days before their most-recent Quarterly Reports were posted.



I think the 2018 registration in Guangdon, China is important, because we’ve all seen the occasional stinky pinky scam with a brand-new fraudulent website, made by traders or insiders, which miraculously pops up right before a P&D. In contrast to that kind of scenario, SHOMUSA.com has been up for over two years, and coincides logically with the 2018 change in control. The site is filled out with some of the legacy services from the old company, but a lot is new, particularly the aforementioned proposed partnerships. Here are some highlights from the English version of the site:

Southern Home Medical Cooperate and Exchange with China People’s Insurance Company (PICC): http://www.shomusa.com/index.php/en/news/15-investments







Southern Home Medical, Inc. plans to provide international Medical Service: http://www.shomusa.com/index.php/en/news/16-investments2







Here are some more screencaps











Summary
With SHOM, we have a very clean balance sheet with no convertible debt or promissory notes, and just a marginal amount of liabilities primarily in the form of cash owed to executives/officers. In that regard it looks like a typical shell company right before a merger. They submitted delinquent Annual and Quarterly reports for 2017-2020 to OTC Markets in two batches (a large batch in September and two quarterlies a month ago in December 2020). From my understanding, they only need an Attorney Letter to be Pink Current. From the abundance of reporting since Sept. 2020 and their statements to this effect in said reports, it seems reasonable to infer that SHOM is preparing to resume active business.

In terms of share structure, the OS is 70% restricted and owned by CEO Yong Li. The float is under 1.17B. There has been no dilution since Sept. 2018. The company has not issued any US press releases since 2017, but again, in late 2018, put up a Chinese website discussing some very impressive partnerships with major players in Chinese healthcare.

For context, the Trump administration made most business endeavors between the US and China less appealing and more regulated, and most expect that Biden will cautiously return the two countries to a more normalized relationship. Healthcare has never been more urgent worldwide, and the time seems ripe in my opinion for partnerships that leverage American and Chinese healthcare platforms and products.

Anyway, personally I find this to be an interesting stock with lots of potential, especially if any of the proposed partnerships on the SHOMUSA website come to fruition. I find it interesting that the SHOMUSA site went up without any fanfare in late 2018, requires some sleuthing to locate it online, and has been there hiding in plain sight during this long quiet period from management. If there were anything pumpy or dumpy about this stock under current management, I feel like they would have directed traders’ attention to the aforementioned SHOMUSA news items about proposed partnerships with huge Chinese healthcare institutions at the time they were posted. But I reviewed ihub and twitter posts going back to late 2018, and there was never a mention of SHOMUSA that I could find.

Please keep in mind that there is no official press release about the SHOMUSA site, and the company is not promoting its stock (nor am I). The Chinese healthcare partnerships are not confirmed at this juncture to the best of my knowledge. I have no idea if the stock price will go up or down, and I never make price predictions or give buy/sell/hold recommendations since I’m not a financial advisor or stock promoter—I’m just a retail trader, and sometimes I share my research—especially if there's an interesting mystery to help unravel. Please do your own DD and make your own trading decisions. The above is my best attempt at presenting what I found as of today. Let me know if I missed anything that's relevant to the company under current management.

All just my opinion as always and not financial advice,

H