China Health Resource, Inc. (fka CHRI)

[Huggy Bear]

CHRI and HBRM. I am highly skeptical that any transaction will take place between these companies, and if it does, its not going to be to the liking of HBRM shareholders, at least not after the momo trading on just the announcement is over and the details are digested.

HBRM has been nothing but unscrupulous in this period of due diligence post LOI. If CHRI still does business with these people I will be shocked. Just the thought of CHRI going through with any transaction with these folks has the CHRI stock held hostage while HBRM has been all over the place.

HBRM has put out falsity after falsity post LOI.

There will be no share repurchasing unless it is of shares sold to the public float (dilution) at grossly overvalued pps that will very shortly be able to purchased much closer to true value which is under .001

As of last quarter the company diluted 113M shares for an average of .0007, netting the company 98K of which all is gone again except 7200 bucks.

Now the authorized shares have been increased from 500M to 950M, which is about as obvious sign of impending dilution as there is.
And the transfer agent is gagged, meaning no one knows how many shares are outstanding on any particular day, everyone except mgmt has to wait until each quarterly report to know what the new figure is.

Authorized share increases coupled with gagged TA's = dilution.

This is my due diligence 101 lesson for the day. Most of the folks in HBRM already know what I say is true yet they will rebut these factual statements anyway because in stocks like this it is only necessary to create false hope for shareholders in order to keep the momentum going.

When the bottom falls out and a few are left going what in Sam Cain happened here, well, thats when you have found out who the suckers are who do not read filings or do any other form of proper and necessary and intelligent due diligence.

Anyone who takes their investment advice from a message board solely is a complete tool of the leaders of the masses. A message board is only good for helping to disseminate accurate information and thats only if you are on a message board that strives to share due diligence and hone your individual impressions of a stock via healthy debate in the free marketplace of ideas.

This stock is purely for trading in a short timeframe because longterm everyone will see how "shareholder friendly" this operation is. If anyone can read the latest 10-Q and show me one element of this operation that is shareholder friendly I will be amazed. So get to work people, but I think you have learned that arguing gibberish with someone who knows what they are doing and saying is futile, and just makes you look foolish. But go ahead and try, Im up for the challenge.

http://www.otcmarkets.com/financialReportViewer?symbol=HBRM&id=78237



That stock trades erratically because it is fueled by momentum, not fundamentals, period. The intelligent ones in this gang are not taking this stock seriously in any fashion, they are just swing trading and know to get up at the end of a momentum run.

There are huge fundamental oxymorons in the statements issued by HBRM mgmt regarding what is currently happening with the company.

On one hand you have dilution clearly happening and an announcement that the company is "authorized" to buy back shares. Well, it takes money to buyback shares and where would they get that money considering they are compiling losses every quarter on top of a mountain of current obiligations due.

Answer: Dilution. How many are they selling at these prices is the only unknown.

The other oxymoron is that the company says they are anticipating a successful buyout/merger with CHRI and says in the next breath they intend to uplist to the OTCQB. So which is it? The two are incompatible.

I already know the flawed argument to debate this - CHRI is only going to buyout a portion of the assets of HBRM. Ok, well what "portion" of HBRM would another company find value in? Why not just purchase individual IP (patents) from the company if that is the case. What assets does Herborium have besides IP that would be worth anything? They have no manufacturing facilities, all their herbal concocts are farmed out to third parties who manufacture. Somebody is going to try and say, again, that CHRI wants Herborium market exposure and presence. Herborim, as crowed about in thier own PR, uses social media and the internet for sales of say, Acne Ease and everything else so what kind of established market footprint is that? HBRM revenue has never even come close to costs of revenue, and with a PR that crowed about revenue up 40% in prelim estimates this quarter, well, guess what? They are still going to be operationally net negative.

In the real world, only the factual bottom line matters. From the filings one can discover they owe 1.5M of real debt with no cash to pay said debt. The company principals have also accrued over 1M in back salary owed. Guess who is going to pay for company liabilities (should they choose to pay that and not go the route of bankruptcy) and the back salaries of your "shareholder friendly" executives.

Answer: People dimm enough to buy shares in HBRM at the current moment are.

The early front-loaded people are just fine because they have been trading this and have no disillusions about this being a "real" company in any fashion.

The company just keeps putting out PR after PR with no real substance and in the case of 100M share buyback, no basis in reality. You have to have FCF to buyback shares.

This company is leading the "longs" to the slaughterhouse. Then again, I doubt there are any true "longs" there, I didnt see the 200 or more of recent posters anywhere near this stock until everyone migrated over there because some ringleader found a POS that had "announced" an LOI between HBRM and CHRI and found something they thought they could run, and they have. I dont know if the gig is up yet or not, because momentum trading has ZERO to do with fundamentals or the true worth of a company. Its all about the same smoke and mirrors that the company puts out in these PR's, coupled with the touting of the information in the PR's as the next best thing since indoor plumbing.

When everyone disappears as quickly as they materialized on this board then the gig will be up, and watch and see what the pps is then.

The only ones left scratching their heads saying "what happened here" will be the ones who follow others and do not do their own due diligence. Because the traders and purporters of this stock who are competent in the markets have done their due diligence know that every word I say is true, but they wont admit it publically, it is against their interests in attempts to "run" this stock again.

Is everyone clear that the due diligence period following a LOI of intention between companies is also known as a "quiet" period?
Well, thats what it is folks, or supposed to be. Neither company is supposed to engage in any material event in the due diligence period that would change the parameters of the exchange of assets being discussed. Notice CHRI has been completely silent in this period. Meanwhile post LOI with CHRI we hear from HBRM:

1. Raising of shares authorized from 500M to 950M.
2. New drink deal with Bismarck distillers for Kamasutra sex-herb infused vodka.
3. Intentions to uplist the OTCQB.
4. 100M authorized share buyback.

Probably more but you get the drift, its hardly been a "quiet period" for Herborium. They are selling their shares into the momentum and inflated pps. Have no doubt folks. They are not dumb, just unscrupulous. They dont care who buys them, and smart traders will not be left holding bags, the sheep will.