Houmu Holdings Ltd (HOMU)

[mdkaz]

XMET DD Feb 24, 2021

Full DD with links and better formatting is here: https://docs.google.com/document/d/13SNb658fcj7GocSnOmivBp2VismzIsR5XEqon8jnwqw/edit?usp=sharing

Here is the copy paste from the document:
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I want to cover the most recent update on XMET that happened on February 24, 2021

Short Background
* XMET is one of David Lazar's shell, which was bought by Wei Tian in December 2020
* XMET has a scary SS with 8+ billion AS/OS, but if you watch its volume and price movements, it's moving a lot off of 190mil average 30 day volume. Compared to DRNK for example, which has 5bil OS, moving small with average daily volume of 555mil within the last 30 days. Current speculation is that around 7+ billion shares are invalid and they will get cancelled sometime soon.

What happened on February 24, 2021
* SOS documents appeared in public where Wei Tian renamed the company to "HOUMU HOLDINGS LTD." (source). After around 10 minutes after that, the buy volume increased and the price ran up.
* Then, this (or similar posts) appeared about R/S 1:100. I could not find any proof from verified sources, thus for now I consider this as a fake document. At which point sell off started. Then stop losses started triggering. Then panic selling. You all know how it goes.
* After that, people found out that R/S might be fake and started buying again. Swing traders jumped in, MMs finally started buying this stock, bashers finally got hands to the stock at a cheaper price (last chance to jump onboard)
* Finally, swing traders closed their swings and the price settled around 0.007.

Finally DD
* As a big XMET holder and believer, I did not sell a single share, but started digging for some DD. Kudos to my friends for sharing with me a lot of info. Let's start:
* First information that we could find is on dnb.com where we found company information that states:
- Address: 19-A6, Floor 19, Floor A4-4 Office, Hanyu Finance Business Center, No. 7000, Jingshi Road, High-Tech Zone Jinan, Shandong, 250000, China
- Company Description: Houmu Holding (Shandong) Group Co., Ltd. is located in Jinan, Shandong, China and is part of the Asset Management Industry. There are 5 companies in the Houmu Holding (Shandong) Group Co., Ltd. corporate family.
- Key principal: Shouhui Qiao
- Industry: Asset Management, Finance & Insurance Sector, Management Investment, Open-End.
* That sounds interesting, let's dig a bit deeper. By googling around, we found:
- Website: http://www.houmucf.com/
- Rough translation: They are looking for opportunities in global market with foreign investment and this is part of their globalization strategy
* OK, one step closer, at this point we recalled that in December, RCRanger03 (kudos!) did a deep dive on this and already found the companies and posted in Ihub! Here are the first and second posts. Amazing!
* From the second post, we can see that pictures from the website above matches to screenshots Ranger did, but name is different (so probably they changed it?). Most likely Haumu is former "Atsugi Holdings Group Co., Ltd." which has 100M Yuan ($15.3 USD) holding group and ran by no one other than Mr. Qiao Shouhui and housed at A8-1, Floor 20.
* Cool OK, so now we know that they have at least $15mil in assets. It might sound small, but I can't tell for sure the scale of the Houmu yet, since it is a holding and it also has parent company "Shenzhen Qiao's Holding Group Co., Ltd" Ranger found 20 businesses connected to them (there might be more) with almost $225M USD in Registered Capital combined.

Personal Comments
* I am still bullish on the company, I want to see the entire picture, if they are simply scaling globally and XMET is just a first step, the moon is not that far for me anymore.
* Super sad that Twitter / Youtube / Google etc are banned in China, thus communication will be a bit complicated. Which creates a lot of space for bashers to bash the stock like today
* They seems to be predominantly focused on real estate, which is interesting, because China Government fully supports that industry and its considered to be a gold mine
* My personal belief is that this symbol has tremendous potential, even with R/S confirmed. Their network seems to be super huge (I remember someone on ihub tried to draw the connection bubbles) and combined they can scale infinitely. Will be holding shares tight until $1 minimum.

Note: Not a suggestion or advice, pure DD and personal opinion sharing.