CashMoneyPlay Just Can’t Get Enough of Great China Mania Holdings, Inc. f.k.a. Great East Bottles & Drinks Hldgs (OTC:GMEC)
“If at first you don’t succeed, try, try, try again”. This seems to be the credo CashMoneyPlay (CMP) live by. You might remember that they tried to tout Great China Mania Holdings, Inc. f.k.a. Great East Bottles & Drinks Hldgs (OTC:GMEC) in the past and the outcome was not that great. Instead of being embarrassed about the failure, they must have thought: “That was fun, we should totally do it again!”. Investors weren’t laughing, though.
Since there are so many of them, we are going to put GMEC‘s pumps into a chronological order so that you can get a better understanding of what we are on about. Damn Good Penny Picks were the first to try and hype the stock back in October and they managed to do it… briefly. They saw what sort of mess they did and decided to call it quits. Then, it was the turn of CMP. December was quite busy for them with numerous emails advertising GMEC flooding the inboxes. On December 31 they started yet another promotion which significantly increased the price… once again, briefly. Since that pump stopped, GMEC have fallen down by a staggering 70%. CMP are not finished yet, though.
Yesterday, we received the last in a long line of emails dedicated to GMEC and it’s pretty much the same story – “extremely undervalued”, “low float”, “millions in revenue”. Words that are almost enough to make you think that GMEC is a company with guaranteed success. Things don’t quite stack up, though.
For a start, we find it rather hard to pin point exactly what GMEC do. According to the descriptions available on the Internet, they are an electronic content provider. The content is supposedly dedicated to lifestyle and leisure, but what is it exactly, and where can we find it? Your guess is as good as ours. Their official website is not much of a source of information, if we have to be honest. The Board of Directors link leads you to the company profile at Bloomberg Businessweek, the Investor Relations link lets you send an email, and the About Us section, which should be among the most important ones leads you to the quote page on the OTCMarkerts website. The rest of the website is full of videos that look like commercials of some sort (unfortunately, we’re not fluent in Chinese).
That being said, GMEC is indeed an operating company as is evident from the financial reports that they file with SEC. And, in that respect, CashMoneyPlay are just about right: during Q3 of 2012 GMEC generated a total of $1 million in revenue. Put in the operating and selling costs, however, and you will see that the they have ended the three months with a net loss of $305 thousand. What’s more, compared to previous years, the revenues are continually getting smaller and smaller while losses are mounting.
In addition to the financials, GMEC have also filed an 8-K report recently, according to which they have secured an investment from a company called Kodiak Capital Group, LLC. Kodiak is supposed to invest $2 million in GMEC, and for that, they will get some shares, which, of course would cause some massive dilution. We just couldn’t resist ourselves doing a short research on Kodiak and we found that they have invested in other companies in the past. The problem is that things didn’t go quite according to plan, as is evident from this post on Investors Hub.
To wrap it all up, we would like to return to CashMoneyPlay. GMEC is not the only copany advertised by CMP. There are plenty of them, in fact. As you would probably guess, they didn’t live up to CMP’s expectations. You can check out Toron, Inc. (PINK:TRON)’s chart and you will see exactly what we mean.