Yesterday, via premium tweet we disclosed that we were taking an initial look at and position in U.S. listed China-based Company Kirin Int. (OOTC:KIRI), as we thought shares were rising as the result of a promotion. We are continuing our due diligence.  We were initially alerted to the price action of KIRI by one of our Premium Members.

kirin pump

GeoTeam Conducting Due Diligence on Kirin

Bearish Points

  • Shares have risen sharply due to excitement over a land/project acquisition deal that has not been consummated yet. Even if the acquisition is completed, the company would have to issue a whopping 166 million shares to the acquiree. This could create downward pressure on the stock, but there are bullish factors below that can continue to lift the stock’s price.
  • Our initial due diligence indicates that the project  in question would still have to be developed, which would likely require a significant amount of funding.
  • We are performing further due diligence to determine if there are any related party transactions in this acquisition.
  • The company has  a track record of being the recipient of third party promotional campaigns.

Bullish Points

  • Investors need to be aware that currently the company only has 20.5 million shares outstanding and a 3.3 million shares in float.   The low float could lead to a sharp rise in the stock on a small amount of shares traded until the company consummates the deal and issues the 166 million new shares.
  • If the deal is legitimate, shares could continue to rise.

We have taken a speculative position in KIRI.  You can become a Premium subscriber to see if this position was long or short, and how we plan to continue to follow the company over the next couple of weeks.  Any further updates will be placed in our Portal.