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teapeebubbles

03/01/10 7:39 PM

#197 RE: mick #196

why is mhj selling off?

littlejohn

03/18/10 1:44 AM

#202 RE: mick #196

Mick, the Cheng railraod can push the reverse merger deal thru so I am not voting any shares...Have sold them after looking over the deal closer but could still vote...

After some time away I looked over some numbers again with less risk at hand and still would have a sale on until after the deal is done and price adjusts...

Things reviewed...

Authorized share count will be raised to about a billion from about 100 million...

MHJ shareholders will see dilution in share count going from about 6.3 million shares to about 63.8 million outstanding shares...

12-31-09 equity comparisons are reverse of MHJ shareholder best interests...
MHJ showed about 1,248,336,000~HK equity and if you only figure 40% of that number it comes to about $499,334,000~HK equity...

China Metro showed about $261,316,000~HK equity...

Earnings review and inside the numbers review...9 months to 12-31-09...

MHJ showed loss of about -($17,848,000)~HK for 9 months
but positive cash flow from operating activities showed about $148,203,000~HK for 9 months...

China Metro showed profit of about $149,553,000~HK for 9 months...
but negative cash flow from operating activities showing of about -($120,151,000)for 9 months...

'Changes in fair value of investment properties' in the income statement on page 64 of the 6-K shows how you post profit with negative operating cash flow...

about $145,856,000~HK changes in fair value of investment properties is most of the roughly $149,553,000~HK profit posted for 9 months...

Cash is King and deserves comparing...

MHJ showed about $561,916,000~HK cash on 12-31-09
40% of that is about $224,766,000~HK...

China Metro showed about $126,312,664~HK cash on 12-31-09...

I looked away for a few days...
and I looked again...

And I don't like the proposed land scheme of a reverse merger as it looks on paper...LJ