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Gold Panda's OTC Short Ideas - Asia Broadband Is Mysterious And Overvalued

Mar. 03, 2021 12:46 PM ETAsia Broadband, Inc. (AABB)55 Comments


  • Asia Broadband is a gold mining company that is venturing into the cryptocurrency space with a gold-backed coin.
  • It recently sold its only producing project for $82 million, so it’s unclear how the company is going to source the gold needed for the launch of its cryptocurrency.
  • The remaining projects in its portfolio are small and I think Asia Broadband’s business should be worth around $130 million.


I’ve wanted to start a new series on SA ever since I ended my previous one, which was called "Best Drill Interceptions In The Metals Mining Sector For The Week Ended X".

During February, I covered several OTC companies that are popular with retail investors, such as Tesoro Enterprises (OTCPK:OTCPK:TSNP), Viper Networks (OTCPK:OTCPK:VPER), Healthier Choices Management Corp (OTCPK:OTCPK:HCMC), Artificial Intelligence Technology Solutions (OTCPK:OTCPK:AITX) and Ozop Energy Solutions (OTCPK:OTCPK:OZSC).

These articles seem to generate significant interest among SA subscribers and I therefore think that it’s worth focusing my attention on this type of company. It seems most of these popular OTC companies are overvalued, so I’ll be approaching these from the bear perspective.

For my first article in this new series, I’m returning to my forte and covering a Mexico-focused gold miner named Asia Broadband (OTCMKTS:OTCPK:AABB). The latter is valued at $464.9 million as of time of writing and I think its business shouldn’t be worth more than $100 million. In my opinion, Asia Broadband is a sell.

Overview of the business

Asia Broadband says on its website that it’s a mining company focused on precious and base metals that are sold in Asia.

In January, it sold its main mining operations for $82 million. According to the company, this gold mine is located in the Guerrero Gold Belt in Mexico and its subsidiary Asia Metals generated a gross profit of $16 million in 2020.

I managed to find very little information about this project. Its exact location is unclear as Asia Broadband doesn’t provide a map and the property doesn’t appear in any of the presentations of gold mining companies with operations in Guerrero Gold Belt that I checked. Also, there is no available mineral reserve or technical report and Asia Broadband hasn’t provided production figures.

Looking at the

This article was written by

Gold Panda profile picture

I have been investing in stocks since 2007. I have no preference for sectors or countries - I'm as comfortable owning a part of a cement miner in Peru as holding shares in a wheat farming firm in Bulgaria. If it's a value stock - great. If the dividend or share buyback yield is high - even better.

- Disclosure: I am not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

I am not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (55)

Looks like AABB was a scam pimp and dump. Oh well.
@Tradyb funny how a little time and things come together. Now they have consession #, Micon reports etc. scams don’t get Micon reports completed.
No surprise that this wannabe mining company's stock has been up, down, and up since your article was posted. Yo touched on the big question, which is that the mines are nowhere to be found. Any legit miner would pr.ovide the concession numbers...as well as geo reports, exploration results, and more, compliant with SEC Guide 7. These clowns likely have no idea what that is. IMO, Qiangda may also be make believe, or, the connection is. I do not believe a word in their so called financials. Maybe the token will bring in some money, but in no way is it backed by gold.
@RonBurnie nine months later and who's looking like the Clown
Gold Panda profile picture
@seanmccluskey as long as you forget this thing called opportunity cost

S&P 500 change
@seanmccluskey Well, it sure as heck isn't me. .09 and falling with every release of laughable news.....
Well, AABB is up 190% this past week. Oh well.
@scubadivingdoc In that week, it went up ~85%, at most. On 3-21, it peaked at just under .17. It's now struggling to stay above 0.08. AABB remains a scam.
After watching some of these small crypto-based companies go from .01 to 3.00 (DMGGF, I got in at .13), I have taken to using money from a 20x'er I have to buy into several of these companies at the stupid valuations and prices that are offered in their early days. I throw anywhere from $10-300 at them, and if I lose, oh well, it isnt catastrophic money for me to lose...but when they hit...man, you just got back ALL the money you spent on All of those positions in a few days usually, and then some. My DMGGF went from $300 to $5,000, for example. I had to be patient, it took a couple years, and I am holding a lot of it to see if they hit the $77 that one analyst has called for. I personally bet it hits $20, and I'm happy to take some profits at that point.
Point being, dont bet the farm on these little companies, but put in that "couch cushion money" so that you can smile hugely if it happens to rocket.
Gold Panda profile picture
@pinecroftmanor careful, this brings back memories of Russ Hanneman's investment style - one out of 36

@pinecroftmanor DMGGF is new to me. I see it's pulling back pretty hard lately...like a lot of the recent runners. But it seems to be a real company, unlike the scam that is AABB.
@RonBurnie and here we are in October. The fools stepped out and the people that stuck around are going to make some coin. Suckers
AJMD profile picture
17 Mar. 2021
From @.34 to @10.00?BIG VOLCANO, Krakatoa!

This is a garbage company but w these new type of investors...I fully expect this to jump when their crypto coin comes out...

It’s the story...not the actual numbers that count any more
@daddiojrvs a few weeks later and the numbers are looking better. What do you think
I assume you know what you’re taking about when you say over valued and “investors can take advantage of this by shorting”

Gonna try shorting it... thanks for the advice
@Chase01 Be careful and watch out for PR before making that decision. The company just updated their legal terms to affirm the fact that the tokens are gold backed by the company. This was the #1 bear argument.
@Chase01Why not just put your money in an envelope and hand-deliver it to the hedges yourself? You could cut out the middle man and all that pesky waiting.
Gold Panda profile picture
@Chase01 do your own DD or consult a financial advisor before deciding
03 Mar. 2021
I love AABB even more, every time the Panda writes to downplay a stock, it dips for a few days and then skyrockets!
@Gold Panda
I looked into your recent run of negative articles on micro caps:

You have released most of your recent articles during retracements
from unsustainable stock valuations.

HCMC: peaked 02/11 at .0058
your article dropped 02/16 at .0048
VPER: peaked 02/09 at .0600
your article dropped 02/12 at .0344
AITX: peaked 02/10 at 0.2725
your article dropped 02/21 at 0.1801
OZSC: peaked 02/09 at 0.432
your article dropped 02/25 at 0.2212
FORW peaked 02/08 at 1.185
your article dropped 03/01 at 0.905
TSNPD peaked 02/08 at 6.84
your article dropped on 02/08***
***credit where credit is due here, you published before the drop

None of this speaks to any accuracy/inaccuracy of your articles.
I am merely pointing out that:
1) a LOT of OTC companies have disorganized, not readily verifiable
information. That's why they are OTC pink, often worth >.01
2) Many of them recently ran up to ridiculous valuations, which were
unsustainable to any reasonably unbiased review.
3) Your recent run of negative articles all play on the inevitable return to
more reasonable valuations. That is hardly brilliant, but rather
strikes me merely as opportunistic.

What is the takeaway? Well, imho:
a) Be careful investing in *any* OTC pink companies. They are there for a reason. Facts are difficult or impossible to confirm / deny.
b) Be skeptical of any NEGATIVE OR POSITIVE articles anywhere.
Even if someone truly has no stock position, they want you follow,
subscribe, or otherwise help them advance their own interest.
c) DO NOT invest money you cannot lose.

Disclosure: I have tiny, tiny positions in AITX and AABB.
It's money I found in my investing "couch cushions".
Gold Panda profile picture
@Illinois Poverty Staff Trust actually, the editing process can take days, so it's hard to pinpoint at what price I wrote the articles
You're playing with fire. You're betting a lot of money here. Your main argument is literally based on the fact that they don't disclose the location of their mines and how much gold they have. Here's a news flash: Cartels exist.
Wow! They do? Really?
There are several reputable mining companies with operations that are not disclosed. There are also several reputable mining companies with operations that are disclosed, and because of this have led to violence in the region. IE GoldCorp.
Gold Panda profile picture
@lrsnsam "several reputable mining companies with operations that are not disclosed"

@lrsnsam Are you saying they might be buying gold from the cartel?
04 Mar. 2021
@lrsnsam Please give us examples, there's plenty that disclose their locations that are legitimate companies. Cartel? What? They deal in cocaine not mining
I think you just sold me to go long on this. Excited for the morning to be catching this on the big pullback from last week's move.
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