China Metro-Rural Holdings Ltd fka CNR

[littlejohn]

Mick, when first discussing MHJ the undervalued appeal was due to the company's large presence in the pearl business with some competition and a very low share count...

The change to reverse merge with CNR was a large change in valuation due to adding many shares for a company that showed a lower equity value...Also putting more emphasis into the real estate area which has much more competition and the entry to business is far easier than the pearl business...

The China market just started allowing short selling recently...Perhaps the major holder expected a much better increase in the share price off some news to enter some short positions to hedge his large controlling position...

The company now has too add a lot of revenue and net profit to appear more valuable after adding so many shares into the picture to figure for earnings per share for each investor's position...

Looks like the company now needs to post about 10 times the net profit to achieve about the same eps as before the reverse merger raised the share count in a large amount...

But the company may have one good quarter under their belt to draw a pop on some eps potential...LJ