The GeoTeam® has performed more due diligence regarding the China Shuangji Cement (CHGJ.OB) story and uncovered information that drastically changes our valuation assumptions for its stock.
Excerpt from 2009 second quarter 10Q
"On June 14, 2009, the Board of Directors of the Company authorized and approved the conversion of 20,250,000 preferred shares that were originally issued on August 9, 2008 to 20,250,000 common shares. As result of the conversion there will be 26,983,078 shares of the Company's Common Stock issued and outstanding." Source: SEC Filing 10Q (FOR THE QUARTERLY PERIOD ENDED June 30, 2009, page 8)
This is quite perplexing as the company just completed a reverse split
This is a significantly dilutive event that may seriously inhibit earnings per share growth potential. There may also be an effect on our original book value per share calculation. We are removing the stock from the special situation list. We may revisit the CSGJ story once again, if warranted. There still may be elements to this event that are positive. We have emailed management.