Golden Bull: Governance Concerns And Questionable Business Value

Apr. 24, 2020 10:34 AM ETBit Digital, Inc. (BTBT)3 Comments
John Gilliam profile picture
John Gilliam
711 Followers

Summary

  • DNJR up 1000% three weeks after NASDAQ T12 trading halt lifted.
  • DNJR market cap of $52million w/ revenue of $40k over last 6 months reported.
  • DNJR Peer2Peer lending shut down By Chinese regulators.
  • Roadblocks with new car rental and bitcoin mining pursuits.
  • Fired DNJR executives own 58% of shares outstanding.

Golden Bull Limited (NASDAQ: DNJR) is a Shanghai, China based company that is trading today at a market cap of almost $52 million at today's high despite only generating $40,607 in revenue in the last six months of 2019, the last period for which there has been a report. The company ended 2019 with only $35,000 in cash and its car rental business was likely shuttered for most of the first quarter due to the Covid-19 lockdown that started in China in January. The chart below shows the revenue ($40,606.02) earned by all Golden Bull operations July 1, 2019 through December 31, 2019 - the last period for which the company has reported results.

Period Golden Bull (DNJR) Revenue Reports Per SEC Filings Revenue
January 1 - June 30, 2019 Report $ 4,547,431.78
January 1 - December 31, 2019 Report $ 4,588,038.00
Difference = Revenue July 1 - Dec. 31, 2019 $ 40,606.22

Just a few weeks prior to the Covid-19 outbreak in China, DNJR's stock was halted for several months after the company's CEO went missing (see filing "...the Public Security Bureau has initiated online hunting for Mr. Erxin Zeng, CEO of the Company") and its CFO and other management were arrested by Chinese security authorities on criminal charges related to the company's now shuttered Peer to Peer lending service. The stock reopened for trading March 25 at 33 cents and has since rallied over 1000% to as high as $3.46 this afternoon, equal to a market cap of $51.55 million.

We note that this market cap is based on financial data sources that show 14,899,185 Golden Bull shares outstanding for the period ended December 31, 2019. The company attempted a stock offering at 40 cents per share in October, but NASDAQ halted trading in the

This article was written by

John Gilliam profile picture
711 Followers
John Gilliam holds a BBA from Millsaps College and a JD from the Cumberland School of Law. He is the manager of Point Clear Strategic Holdings in Point Clear, Alabama. Point Clear Strategic Holdings is a value oriented activist investment group seeking opportunities in small cap technology companies. Visit: Point Clear Strategic Capital (http://www.pointclearstrategiccapital.com/)

Disclosure: I am/we are short DNJR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: :My intent in publishing this article is to inform investors about developments related to Golden Bull Ltd (DNJR). I did not and do not intend to suggest any specific action by any investor or shareholder and strongly suggest that any decision made to buy or sell shares of this stock be made after consultation with an investment advisor as to the suitability of such an investment. I intend to establish a small short position in DNJR today in personal accounts. I may buy or sell shares at any time based on market conditions and the trading price of DNJR.

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