Hong Yuan Holding Group (HGYN)

[Bsav88atty]

Jinky - I agree that if the company announced significant revenues the subsequent boost in stock price may be enough to get us close to $1, but what we really need is objective proof that revenues will exceed $40M to simply justify a buck in PPS. Frankly, I don't see that happening. That said, I respectfully disagree that the company should be spending a dime of its revenues on a share buyback. It needs to demonstrate consistent profitability, and build up a strong balance sheet. Only then would I consider a share buyback. Of course, by the time all of that happens, a buyback will be significantly more costly.

With all of the toxic financing and dilution the company has experienced in the past several months, coupled with last year's horrific performance, there really aren't too many bullets at the company's disposal. It is tinkering on the edge of bankruptcy, and the only way to turn this company around is to sell stuff and increase revenues. But if we want the PPS at a number to attract strong institutional support, because of all the toxic financing, the company must use the R/S bullet as I outlined in my original post - 10:1.

Best,