China Growth Stocks

[CSykes]

GCHT Upon closer inspection..

Looks like a typical R/M transaction in which a shell was provided in combination with financing. This is pretty normal in the R/M world and one of the few times a R/M transaction might be beneficial over a DPO or going public direct.

The guy John Lennon (no Beatles jokes) is probably just a shell facilitator and that is why he is listed on a number of shell companies. Similar to say Joe Meuse of Belmont Partners.

The promotion is obviously paid for by the financiers in an effort to gain some market awareness since OTCBB generally don't get analysts looking at them. They have some PIPE funding that needs unloading, so looking at the total funds raised, $100K promo doesn't seem to our of the ordinary to be honest.

Personally, after looking at it more closely, it might be something interesting to keep an eye on. However, from my experience, insiders, promoters and previous directors, along with the PIPE funders are going to be selling selling selling (that is what the promo is for) so it might not be a good buy right now. I would say wait till the funding is complete, the stock has settled and wait for at least 2 quarters.. then re-visit the stock.

I have rarely seen a R/M worth investing in right after the acquisition closes, way to many people looking to sell.