Good Life China Corporation (GLCC): Post Unavailable Additional Informati...

crazy horse 0 · 2008-06-26T14:54:59.5700000Z

softwarelaw nice job From Soy, please review and REPLAY with comments: Haorizi - Good Life B-603 Technology Fortune Center, No. 8 Xueyan Road, Beijing, PR 100085 China re: Haorizi, GLCC: OTC, and other ruminations about the company and stock To whom it may concern: While Haorizi appears to possess a sound business plan and company history, there can be no question that its stock price does not trade at a level that properly rewards the merits of the company. Why is that? Many times the shareholders’ concerns have been voiced whether through message boards or direct contact with the IR firm in the form of the "blog style" email system that MinaMar uses. That proper results have not been seen in the price per share would suggest one or more of the following causes: MinaMar is not capable of performing in the role that Haorizi has hired it to do, that the Company is not receiving the investors’ concerns, or the Company does not care about the investors’ concerns. In order to find out, I send this letter to MinaMar through blog, and also fax directly to the corporate headquarters in China. GLCC the equity and its corresponding shareholder sentiment, at this time, have been debased by Good Life China’s representative’s words and improperly directed activity, in my view. I strongly urge the following be considered going forward: even giant corporations can flourish with simple share structures, clearly defined goals and milestones are essential in judging the growth of an emerging company, financial auditing on a GAAP basis is imperative for serious US and international investors, and finally, pre-meditation pertaining to shareholder response must be considered before every Press Release or News Item is brought forth to market. Through all of these, I will also try to underscore the importance of keeping affairs simple so as any investor, of any level sophistication, can thoroughly understand the company. On share structure. Mergers, spinoffs, dividends, and other exotic company maneuvering make no matter to shareholders who believe in one thing: Haorizi franchising, products and logistics. Should a company be taken in by GLCC, does it not make sense to conduct said transaction on an all cash / cash and equities / all equity basis? If GLCC has indeed been abused by criminal shorting and naked shorting through improper use of restricted dividend shares, why would the company propose to turn around two months later and perform the same action as was indicated in the PR release dated today, June 25, 2008, with respect to a possible merger with Runtian? Common shares and a class or two of warrants should be more than enough to satisfy the needs of a company with only 400 full-time employees. Indeed, should GLCC become a company with a market cap in the billions, do there really need to be 10 classes of warrants exercisable between 0.20 and 0.35 dollars? Investors find that simplicity adds value. It does so by removing some fear that duplicitous activity will transpire in the details. A simple share structure should be inherently manageable, and avoid confusion. We have already seen the transfer agent, Heritage Trust, issue conflicting outstanding share numbers multiple times this year, presumably because restricted shares were coming mature. I add, the presence of these shares was completely unknown by me. Until such time as GLCC’s share structure is modified to attain a goal of becoming more simple to manage and attend, I strongly recommend a visual representation of the current structure with accompanying numbers outstanding for each associated party. On clearly defined goals and milestones. GLCC’s growth curve on the front page of www.goodlifechina.com is impressive. Showing present and future store numbers and revenue and profit projections, it is exactly what is needed for investors to judge Haorizi’s present and past success. This growth chart marks the point where GLCC falls short. What other milestones are there for the company? How much fund raising must be done in order to achieve these and other goals? What intermediate points can one look at between the posting of results to judge progress? Astute investors ask these questions. They want to look back monthly, or even weekly or daily to check the progress of their position in your company. There can be no doubt that Good Life recognizes the importance of being a listed company, and a company that performs well in the markets. Helping investors value the company, by judging its growth and ability to deliver on goals, will help them value the equities, enabling them to trade GLCC at appropriate levels. I suggest that Haorizi thoroughly identify its business plan and set near and long term goals and milestones related not only to stores and distribution centers, but also to fund raising, share price, and amalgamation of sectors (other companies) into the Haorizi umbrella organization. On auditing to GAAP standards. The origination of the GAAP standard arose out of the great Enron collapse. Enron proved to the world that no company, of any size, is immune from the sin of greed. While expensive and time consuming, GAAP accounting has the benefit of standardizing the company’s financial data in such a way that performance can truly be appreciated. Standardization inherently adds simplicity as added effort to find, extract, and extrapolate data will not be required by investors well-studied in the practice of reviewing those financials. Further, since conducted by independent third parties, there follows a level of unshakable truth to the numbers presented in this format. Reflecting back on the importance of a successful price per share, GAAP accounted financials add a measure of value based on the independence factor, alone. GAAP standards are a requirement of NYSE and NASDAQ traded companies and are internationally recognized. With one of Haorizi’s goals being to uplist to a larger American exchange, having these financial practices in place now would certainly smooth that transition in the future. I suggest that there be no other certified account of the company’s financials than on a GAAP basis. Make it easy for investors to see Haorizi’s meteoric growth and profitability on a year over year and quarter over quarter basis. On the company’s presentation to the public. Misspelling, misinformation, unclear communication, etc. None of these misgivings should be deemed acceptable for a public company, especially one with so many other challenges to overcome. The company addressing “stock bashers” from message boards in PR releases appears childish. The Transfer Agent incorrectly stating the quantity of shares outstanding causes one to think that Heritage is unqualified at best, and somehow involved in criminal activity at worst. These are not concepts that should be foreign to MinaMar. PR releases should have the effect of positively impacting the price per share. They should contain unexpected, highly beneficial information related to Good Life. Information of such quality that new investors would be caused to investigate and purchase equities for themselves who have never had any before. I suggest updating the company website regularly, and reserving PRs for information such as: the Beiguo Renbai deal closing, the share buy-back announcement, the completion and operation of new distribution centers, and of course, profitability numbers. MinaMar needs to be informed that their poor use of the English language, inappropriate references to message boards, and complaints about the stock price are not acceptable. The professional business person’s reaction to Haorizi PR, website appearance and information, and third party information absolutely must be based solely on the content of the information, not the presentation. In closing, growth does not necessarily entail complication. Rather, simplicity confers upon the investor and potential investor the ability to judge for themselves. Simplicity necessarily accompanies transparency and combats duplicity. Criminals hide in alleys, not open fields. Please consider these thoughts from a faithful shareholder. Your success in the world market not only represents financial victory for me, but a pride in watching a small company develop into an internationally recognized business.