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Saturday, January 9, 2010
Weekly Review: CSGJ.OB and BSPM.OB make uplisting moves
By China OTC Player
China Shuangji Cement (CSGJ.OB) has had a busy week. On Tuesday it announced that it has hired a new accounting firm -- Bernstein & Pinchuk. On Thursday the company annoucned that it has a new CFO -- Michelle Xiao Wen Zhu, a CPA with an MBA from UC Irvine.
What is telling is this quote from the latter press release, when describing Ms. Zhu's credentials (all italics are mine): "Hiring Michelle is an important step forward for our company. Her experience with the US securities markets, NASDAQ and AMEX listed companies, her understanding of PCAOB accounting methods coupled with the fact that she is fluent in Mandarin and English will be integral to our success moving forward."
If the company's intention wasn't clear enough, here is a quote from the new CFO herself: "I am extremely pleased that China Shuangji Cement selected me to join their team and I am very excited about the Company's growth plans. My experience with US listed companies will be valuable as China Shuangji attracts new investors and moves forward."
But with CSGJ's share price currently at below a dollar (last traded at $0.85), how realistic and imminent is this? Well, this is where Berstein & Pinchuk could matter. Apart from being the auditor on record with several Chinese companies, including JNGW.OB and Orsus Xelent (ORS), partner Drew Bernstein sits as independent director on several boards. One of these is Orient Paper (ONP), probably the greatest Chinese OTC success story of 2009. ONP started 2009 as an OTC stock, trading at way below a dollar (closing at $0.06 on 1/2/2009). It slowly gathered momentum and did a 1-for-4 reverse split in November 2009, eventually getting listed on AMEX by year end. The total return for this stock in 2009, adjusted for the reverse split, is a whopping 4267%.The total return for this stock in 2009, adjusted for the reverse split, is a whopping 4267%.
Another company making moves to uplist is Biostar Pharmaceuticals (BSPM.OB). On Monday, it appointed two independent directors, constituted its audit, compensation and nominating committees, and also adopted a Code of Business Conduct and Ethics. One of these independent directors is Zibing "Zack" Pan, a CPA who is currently the CFO of AMEX-listed China Education Alliance (CEU). Like ONP, CEU was an OTC stock which got uplisted in July of last year. It rose from $1.10 to $6.12 for a 2009 return of 456%.
The good thing about BSPM is that, unlike CSGJ, no reverse split is necessary. The stock has been trading at above $4 and continues to perform strong.
My Position: Long BSPM.OB.
Posted by China OTC Player at 11:49 AM
Labels: AMEX, Bernstein and Pinchuk, BSPM.OB, CEU, CSGJ.OB, Drew Bernstein, JNGW.OB, ONP, ORS, Zack Pan
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