Great China Mania Holdings, Inc (OTC:GMEC ) Bombs After A Weeklong Pump
Great China Mania Holdings (OTC:GMEC) failed to meet the expectations of the many pumpers touting it. Investors were promised a breakout run and triple digit gains by Friday while in reality all they got was a drop of almost 20% and a significant hit in the wallet. With the non-stop press releases and alert emails GMEC managed to reach 5 million traded shares and a closing price of $0.029.
If you disregard all the fluff PR news and over-exaggerations of the newsletters, GMEC seems like a serious enough business. They are well positioned in China and their artist management subsidiary is making real progress. Their top actress Chrissie Chau even took part in the Hong Kong Film Awards presentation ceremony and gave the “Best Action Choreography” award to none other than Jackie Chan.
Their financial performance for 2012 was also quite satisfactory for a pennystock company. In the 10-K report we found:
- $218 thousand cash
- $888 thousand total assets
- $1.3 million total current liabilities
- $4.8 million revenues
- $535 thousand net loss
On April 19 they started the shooting of their debut film which garnered some interest from the Chinese media. And finally, something that will no doubt surprise the more experienced penny traders, GMEC announced that it is going to repay a convertible note by cash to avoid the note being converted into new shares of free trading stock. That is definitely something you don’t see every day – an OTC company trying to avoid issuing new free trading shares in order to maximize shareholders’ value.
What may and should force investors back a little is GMEC‘s regular participation in pumps. In late January, AwesomePennyPick, one of last weks promoters, were at it again. The ticker responded positively at first but as soon as the campaign ended, its long decline began.
On the surface, GMEC are trying hard to regain the trust they lost and as we all know that takes time. They have started some promising ventures that will yield results at a later date so the best thing for now is to do your own research before investing.
