Hong Yuan Holding Group (HGYN)

[eagle_2975]

see there is a bunch of $ that the company is on the hook for, and the only way they can pay their operating expenses as well as pay the past debt owed, is to issue new convertible debt. That current outstanding share count does not factor in the dilutive effects of convertible debt issued to Magna and others. The horrible thing about OTC penny stock convertible debt is 99.9% of the time, it is based on a discount to the lowest trading prices in the last month; in this case less than $.01 per share. So 100M additional shares only covers $1M worth of converible debt (less depending on the haircut to the low of the last trading month). So you can bet your behind that fully diluted shares outstanding is 300M.

I am NOT short this stock. Who has the ability to short OTC $.035 stocks in any size? Usually the margin requirement to short any penny stock is $2.50 a share; to short anything in size would take tons of money, which I don't have.

You honestly think this isn't going to tank on Monday? Who knows, maybe there will be a big shake on Monday at the open and then it will bounce back.