Replies to post #2940 on China Health Resource, Inc. (fka CHRI)

[Huggy Bear]

Agreed completely, in the sense that CHRI has and has had a figure in mind of the worth of Herborium to them from the start.

What Herborium mgmt does in the meantime should have no effect on that bottom line, except I would be skeptical of this particular mgmt ways of doing business in a due diligence period but hey, thats just me.

CHRI will offer their price and then it is either accepted or not. None of the events as of late should have any material impact on that you are completely correct.

[downthehatch]

nsomniyak:
Of course you are right, as Malc has said.
The key word in your post, however, is the word "shared"

What some people don't seem to understand, is that CHRI, if they go through with a buyout of HBRM, has already decided on a price, that they believe HBRM is worth.

And that price will be "shared" among all the hundreds of millions of shares that HBRM has outstanding, and apparently continues to issue.

The point that malc and I keep trying to get across is that HBRM is not worth 8-10 million, despite all the hype about future revenue.
If it is worth 1.5 million to CHRI, and there are 500 million shares outstanding, then each share will be worth .003, to give an example. Even if HBRM bought back 100 million shares, there would still be about 400 million, meaning a buyout price of .0375, in my example.

No way is CHRI going to pay .01, let alone .02, for this company, and HBRM management knows that, and yet they shamelessly issue more shares, and then issue press releases promising to buy back shares, intended to deceive gullible investors into buying their stock at inflated prices. The only way people make money on a stock like HBRM is to sell their shares to even MORE gullible investors, who have done even less due diligence than they have.
It is really appalling to watch.