Cashing in on Uplist City
By Glen Bradford
I believe that stock market prices in the long run are a function of shareholder earnings, but in the short run are dictated by market forces, notably supply and demand. One of the easiest ways to capitalize on the short run market forces is to find situations at which point larger investors look to what previously was mostly owned by smaller investors. One of the better ways I’ve found to do this is when companies uplist from the OTC/Pinks to the AMEX/NASDAQ/NYSE exchanges.
New Energy Systems (AMEX:NEWN) just crossed into the AMEX from the OTC’s. For those who have been following the story — it’s about time, right? Who is on deck to follow them up? Let me revise that statement: “Who is cheap and on deck?”
China Ceramics (AMEX:CCLTF) is looking to score the coveted NASDAQ listing, but currently trades on the AMEX. They recently initiated a conversion program that enables investors to convert their warrants into common shares.
Gold Horse International (OTC: GHII) is a company I’ve been following for a few years now. The market cap is $7M, which is embarrassing. My calculations put it at levels of cheapness that I’d rather not talk about — because I’m happily accumulating on the bid. They’re reverse splitting 40-1 and looking to uplist to the AMEX.
China Medicine Corporation (OTC: CHME) is working with JP Morgan, recently authorized a share buyback, and is theoretically bringing a blockbuster drug to market. From a pricing standpoint, the market is pricing China Medicine as if to say, “We don’t believe you!” I’ll go out on a limb and say that uplisting is even closer since they’ve added three new directors.
China Infrastructure Construction (OTC:CHNC) is looking to go NASDAQ from the OTCBB. Likely? I think so. Energroup Holdings Corp (OTC: ENHD) is looking to do the same.
One thing you should know is that both ENHD and CHNC received assistance in coming public on US Exchanges from S3 Investment Company, Inc (PINK: SIVC) which is pretty much owned and run by Jim Bickel. As such, if one makes the leap, odds of the next one making the same leap are pretty good.
I want to close discussing a topic that I know a lot of people reading this article are waging internal battles over. Should they trade or own? I want to say that the market trains people to be traders — to get in and out with a small, quick profit. My word of caution would be that I believe that this strategy could leave you missing large runs as I’ve found that a majority of my gains come from a few stocks that exploded several times the price I bought in at.
Disclosure: Glen and his investors are long all the companies mentioned.