Replies to post #19924 on Hong Yuan Holding Group (HGYN)

[Carter]

I think people are looking at the next 4-6 weeks with the potential for sizeable runs, at this point... as for holding long... we have plenty of time to make that decision.

[ybnormal]

Vic, actually, the proposed increase in A/S is to 2 billion, not 1 billion. If that and the R/S get voted down, Cereplast will not default in 2013, as they have already taken care of their financing obligations through 2013. Read the older filings. The dilution which occurred recently was the result of Cereplast obtaining financing to cover their defaults for the balance of 2013.

Furthermore, Cereplast has just announced the incorporation of a wholly owned subsidiary, to develop a new product line. According to the PR, this new product will take up to 5 years to commercialize. How do you think they intend to pay for this R and D? I have a feeling that Cereplast has earnings that haven't been made public yet, they almost have to, otherwise how could they fund it? I'm also looking forward to their earnings report, and more earnings PR. IMO, there is more going on financially than we know about.