China Medicine Corporation (CHME)

[horst]

Well, if you look closely at the fundamentals -- especially debt -- of OTC-traded companies, you'll find that clean shells usually have the best balance sheets in pink sheets by a mile. They might not have any revenue, but they're not saddled with millions of dollars in insurmountable toxic debt. As I'm sure you know, pink sheet stock pumpers often use *revenues* outside the context of profitability to come up with wildly inflated valuations, pretending that such valuations are based on fundamentals, when they're clearly not: a company losing millions a year that's just a share selling scam has terrible fundamentals regardless of revenues.

I'd say maybe one out of 500 OTC stocks at best is anything resembling profitable. Old shells like CHME, where the debt is probably invalid due to the statute of limitations expiring, are among the only OTC stocks with potential of a good company coming in and adding value. It's not the norm, but it does happen. But ironically enough, the rare profitable reverse merger companies in the OTCs are often scrutinized for their fundamentals (i.e. "they only made $50,000 in profits this quarter" - BZW* is a good example of this) while train wreck companies with endless millions in convertible debt get higher valuations due to hype/pumps and nothing more. It's all a cesspool, but I do find that clean shells are appealing exactly because they have the chance to start anew with that rare good company that might reverse merge into the shell... Just my opinion...

H