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Re: edesheim post# 213

Sunday, 05/02/2021 8:06:17 PM

Sunday, May 02, 2021 8:06:17 PM

Post# of 328
edesheim...current thoughts on YBGJ......

So Cheung Ho Shun is in the red by now. Current market cap is only around $35 million depending on current outstanding share count (taken from OTCBB). So how many legacy shares are we dealing with? I wonder if and when the management will start updating and talking. I just keep my shares but amazed on how things unfold. Any thoughts from your end?



Strictly my opinion, but if the $3-4 range turned out to represent a short-term high and a price area of too much optimism and exuberance, maybe this current price area of 20-50 cents will turn out to represent the exact opposite of the spectrum.

There were about 1.18 million legacy shares, and at YBGJ's high point those shares had a valuation of less than $5 million. It is not always fair to directly compare shells/RMs, but in this market I have seen other shell legacy positions (many far less attractive/promising than YBGJ) obtain legacy valuations significantly higher than $5 million. For example, another China shell (CBGH) at its peak saw a legacy valuation well over $200M here in 2021. Even after its recent pullback, CBGH's legacy valuation is well over $30M, compared to YBGH's current legacy valuation of $350K.

That is one huge disparity in valuations. It highlights just how difficult it is to predict how the market/investors will treat each individual stock. Now, it is entirely possible there is some really negative thing coming down the YBGJ train tracks that I am aware of, but all things considered, I think this stock should be trading at a higher price than it currently is. It is anybody's guess as to how much selling pressure remains on the stock or when it will abate, but as the market has shown on an almost daily basis buying/selling pressure on individual stocks can change in a blink of an eye.

The biotech/medical sector on both the OTC Markets and the big boards is capable of producing some pretty explosive/strong moves in stocks. Sometimes when people are not really expecting it (the move BPSR had on the OTC in the last week or so would be a good example).

Although the company is still relatively early in its formative/development stages I have felt for quite awhile that YBGJ is a company that has the potential to make a move to a higher exchange some day. The reverse merger was officially completed on January 14 (less than 4 months ago). I have seen stranger things happen but I will be a little surprised if the company remains completely silent in the investor relations department this year.

If the company does ramp up the IR department, that is something that could serve as a nice catalyst for the stock because I think it is fair to say that is something that would probably catch most investors and the market completely by surprise.



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