I know they do some things differently in China than elsewhere. But i have to ask, wouldn’t most Chinese themselves find this story literally beyond comprehension and too absurdly funny for words? I sure hope so.
Perhaps only in China can investors find companies engaged in online video sharing also doing brisk business in mining of minerals. A recent press release issued by China YouTV (CYTV.OB) is yet another reason why I only choose to write about China’s tech world, and keep my money far away from the Middle Kingdom and its many dubious listed technology companies.
On March 5, 2007, Admax Resources changed its name to China YouTV Corporation. I’m not joking when I relay the following from the company’s release: “The company intends to participate in the fast growing video sharing web site market in China, and at the same time, to continue its exploration of mineral properties in British Columbia, Canada.”
Is somebody at China YouTV sniffing sulfur deposits?! Gao Zhenyong is the president of the company, but where’s the board of directors to ensure the company stays on task? I guess in a poetic sense the two businesses are synonymous: mining of video data with bots and scripts on the one hand, and extraction of precious minerals on the other.
No, sorry, it still doesn’t make sense.
Here’s my favorite part of their press release, and it should be printed and pasted to the walls of all would-be Chinapreneurs, China consultants, trade associations, and investors:
If the Company finds mineralized material and it is economically feasible to remove the mineralized material, it will attempt to raise additional money through a subsequent private placement, public offering or through loans. If the Company needs additional cash and can’t raise it, it will either have to suspend activities until it is able to raise the cash, or cease activities entirely. If the Company can’t find any mineralized material or it is not economically feasible to remove the mineralized material, it will have to cease activities and focus on the new market: the video sharing industry in China.
The minerals mining sector and the video sharing sector are so different that I think it’s rather beautiful that this wayward company is honestly relaying to potential investors and (ouch!) current investors their ridiculous intentions.
I really do want everyone to reflect on this for a moment. I know, in the world of creative thinking there are “no wrong ideas” and thinking outside the proverbial box means letting go of our pre-set notions. Even after doing that and opening our minds to new levels of tolerance, is it possible not to find it unbelievably nutty that a financial document states that if a company fails at mineral mining it will then move on to video sharing? Would you want to invest in this outfit? Just wondering….
1
By JXie
Actually that’s your a typical day-to-day pink sheet stock, a.k.a. not China-related per se. Often the filings are so inadequate that you can’t even find out what the outstanding share count is. There are stocks traded over the counter that morphed from dot-com to oil exploitation to ethanol, with little to no revenue, traded at a couple of pennies with daily volume of a few thousands (less than $100 changed hand a day).
Any one of us can start such a company if we want. The paperwork and fees aren’t that difficult to manage. Once in a while, your typical pump and dump scheme can drive a stock’s market value to a couple hundred of million dollars (still with near zero revenue), and sucker in unsophisticated investors.
Pink sheet stocks are mostly losers. But sometimes there are exceptions. One kind is “falling stars” — stocks get delisted from big boards, but likely will go back. A China-related example is Netease (NTES). At the bottom of the bear market, it was late in SEC filings and was delisted from Nasdaq. It was traded over the counter for a while. The stock price was as low as a quarter (before 1:4 stock split). Had you bought then and sold at the recent top, you would’ve turned $10K to $4M. I know, woulda, coulda, shoulda.
At least this company has all the right buzz words. But the dude’s PR wording skill needs to be refined quite bit.
March 17, 2007 @ 9:18 pm | Comment
2
By David Li
Once upon a time, there was a rubber company got into making mobile phone in Finland. It was a joke in the industry in the 70s and today, the company is Nokia, #1 mobile phone maker in the world.
March 17, 2007 @ 9:28 pm | Comment
3
By Louis Hutong
Compared to some other Chinese companies, that may actually be one of the most competent business plans put forth in a while.
March 17, 2007 @ 11:37 pm | Comment
4
By fatbrick
David, you made a good point. Although I would say that the odds that this company makes another Nokia someday is not promising.
March 18, 2007 @ 12:59 am | Comment
5
By China Law Blog
Tulips anyone?
March 18, 2007 @ 5:33 am | Comment
6
By YeOldeGnurd
Add to this absurdity the fact that I have gotten AT LEAST 10 spams this weekend pumping the stock, and I have to wonder why it’s so hard for the authorities to shut down “businesses” like CYTV. I mean, it didn’t take me long to find the hilarious press release when I found the spam to be amusing, and then today to find your blog entry, but there are probably a few people who will actually BUY THE STOCK without noticing the British Columbian mineral angle.
March 19, 2007 @ 4:10 am | Comment
7
By jamie
At one stage during the 1990’s, the Dinamo Kiev football club in the Ukraine also had an export monopoly for gold and missile components.
It didn’t do much for their football.
March 19, 2007 @ 5:06 am | Comment
8
By Chip
The only thing I see wrong with it is the fact that the video-sharing industry would be pretty difficult to make a profit it. They’d make more money if they produced peanut-butter (which I can’t find good quality in China)
March 19, 2007 @ 10:30 am | Comment
9
By LH
Actually, it just occurred to me. A video-sharing site about rocks might be exciting to watch…
March 19, 2007 @ 1:13 pm | Comment
10
By JXie
This deserves a follow-up. This spam-pumped piece of shit briefly touched $55 mil in market cap and crashed down last week. Its filings show that it has some $10k in the bank and zero revenue.
Spammers need to be rounded up in an island and nuked to extinction.
March 25, 2007 @ 10:47 am | Comment