Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Storm Clouds Loom for CHBT investor day

|Includes: China-Biotics, Inc. (CHBT)

Investor day? What Investor day?
So says the host hotel.

Please read on……

I was alerted thru another trader of a stock that just didn’t seem to be adding up.
China-Biotics (OTC:CHBT) is the company I was alerted to.

I started making calls and doing my own research. I sent an email to the PR firm of Grayling and asked to be placed on the investor day reservation list. I also asked if I could bring a camera crew to the event. Ten minutes later I received a telephone call from the Grayling New York office. When I asked who was on the other end of the line he said “Snow White.” The unidentified Grayling person asked me if I was the same person as mmonday88 on the yahoo message boards. I said yes. He then asked me what my problem with the company was? I told him I was just checking things out. He then told me that video and audio recording rules would be in the “investor package”. Then the phone went dead. This call was conducted on September 2nd, 2010 at 10:46 am EDT.
Grayling is the PR firm for CHBT.

After posting my experience of this on the message boards and continuing to press the PR firm for more info on the investor day Grayling finally issued a press release thru PR Newswire on Sept 3rd, 2010 at 12:23 pm EDT with details of the upcoming event. The press release also stated… ” Detailed information of the hotel accommodation will be distributed later today to event participants who have completed their reservations”.

An hour later I received an email from Grayling with a PDF attachment.

Here is the PDF file sent to my email concerning “investor day” from Grayling.

Once again I felt there was important information missing in the press release and I made those concerns public.

I know of other investors who sent requests to be included in the investor day events but I was the only one who got the email. This email stated the following …
Hotel Accommodation:

We have reserved a large numbers of single occupancy rooms at Hyatt on the Bund (199 Huang Pu Road, Shanghai, P.R.China 200080). We have discounted rate of RMB1,400 per night including breakfast. This is a brand new 5 star hotel overseeing the skyline of Pudong. Should you choose to stay at Hyatt on the Bund, please confirm with me at your earliest convenience.

So I then contacted the hotel mentioned above in the press release to reserve my room and to confirm the corporate rate mentioned in the press release. Here is the email response I received from the Hyatt.

Re: China-Biotics meeting
Friday, September 3, 2010 9:25 PM
Add sender to Contacts

Hello, Jeffery

Greetings from Hyatt on the Bund, Shanghai

Currently there is no such meeting addressed China Biotics held at our property on 20 Sep.

Please double check with the meeting organizer.

Warm Regards,

Denny Shen

Hyatt on the Bund
199 Huangpu Road, Shanghai 200080, China
Phone: +86 21 6393 1234 Ext. 6221
Fax: +86 21 6393 8559


Then on Sunday afternoon September 5th, 2010 I decided to have the hotel check again for any block of rooms reserved for either Grayling or China-Biotics and once again the hotel was unaware of either. Here’s the second email response I received from the hotel.

Re: Fw: Grayling/China Biotics
Sunday, September 5, 2010 9:13 PM
Add sender to Contacts

Dear Mr Bennett,
Warmest greeting from Hyatt on the Bund Shanghai.
Thank you for choosing our hotel, we are awfully sorry we can’t find below group in our system would you reconfirm with group organizer?
Your help on this much appreciate we look forward to waiting for your early confirmation.

Best Regards,

Angela Cheng

Hyatt on the Bund
199 Huangpu Road, Shanghai 200080, China
Phone: +86 21 6393 1234 Ext. 6244
Fax: +86 21 6393 9970

09/06/2010 08:02 AM To SHANG-Reservation/SHANG/NASIA/HIC@CORP
Subject Fw: Grayling/China Biotics

—– Forwarded by SHANG-Info/SHANG/NASIA/HIC on 2010-09-06 08:02 —–
Jeffery Bennett
2010-09-06 07:44 To SHANG-Info/SHANG/NASIA/HIC@CORP
Subject Grayling/China Biotics

There is a block of rooms for this gathering either under Grayling or China Biotics?
I’m trying to get the rate for this special and I would also like to know if anyone else in the group has registered yet?

Thanks in advance for your time.

1) Apparently the host hotel, Shanghai on the Bund
    has no idea they are the host hotel for the investor meeting on Sept 20th, 2010.                                                     
2) It would appear that there is NOT a “large number of rooms” reserved at the   hotel as the PR stated.
3) I seem to be the only one who received the detailed hotel information within the investors I know of who asked to be placed on the list.
4) There is no mention of audio/video rules for the event.

With so many more questions than answers on this entire event and company itself, I for one will keep digging.

Disclosure: Short CHBT