My initial plan (over a year ago) was to hold on that long. The company makes a profit in everything it gets into. Probably good connections inside the company. Figured it could become a huge Chinese conglomerate. That may still be true. Nothing indicates the company itself is not doing well. These dilutive issuance are the problem. Whenever a company issues stock at share prices below net book value per share, it mathematically shifts value from the existing shareholders to the new shareholders; most legitimate companies avoid this like the plague (shareholders HATE this). It's unavoidable if a company is struggling and can't get financing.
But TANH does NOT need cash. It would appear the intention of the issuance was dilution. This may also be an indication they had a hand in recent SP decline. The scale of dilution was MASSIVE. Those new shares represent 75% of the current ownership. And the cash they got was only a tiny fraction of what they already had on hand.
This is actually an argument to buy now. The reason they perpetrated this theft (no quotes needed), is because they know the company is valuable and are trying to steal for themselves. This wasn't a "public" offering. I called the day it was announced; it was already sold out. It was an inside job.
This is a lawsuit waiting to happen. But I've been a holder in a Chinese company traded on a US exchange, where the shareholders won a lawsuit against the company. The company actually stated in their next financials that a US judgement is not enforceable on a company operating in China (no US/China treaty) Just gave a big middle finger.
The only way to protect from this dilution it to participate in the theft (buy in the issuance), or in this case buy on the open market at the same $0.50 @ 3x original holdings. Which I have been doing. Almost there.
The reason price remains low is the rightfully deserved distrust of the company. And they don't understand the math behind the dilution. They also most likely will do this again... But as long as you are prepared to buy in again, you'll not lose - on a long enough timeline. Manipulators will always refer to these past discretions to pump price down.
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