Myson Group, Inc. (OTCMKTS:MYSN) Takes Another Shot at Glory
Myson Group, Inc. (OTCMKTS:MYSN) officially announced its new name and ticker symbol last month. Many people probably thought that they’re in for a “here we go again” type of situation.
The company has been around for a while and over the years, it has gone through more than a few names and trading symbols. The business plan has seen its share of transformations as well, but none of the ideas worked. As a result, at the end of Q1, the company was in a pretty appalling financial shape. Here’s a summary of the figures:
- total assets: $240 in cash
- current liabilities: $66,955
- NO revenue
- quarterly net loss: $29,430
If the financials are not bad enough to scare you away, you should probably take a look at the huge number of failed contracts. Quite a few agreements and memoranda of understanding were signed over the last few years, but most of them expired and the ones that didn’t led to nothing more than a few active days for the stock.
Now, though, the members of the management team are trying to convince us that they really are on the right path. At the beginning of the month they said that they have completed the acquisition of a 50.9% stake in a Vietnamese company called Van Phuc Holding Building and Trading Joint Stock Company. They said that the new majority-owned subsidiary is about to register annual revenues of more than $50 million and a net profit of about $10 million.
They also said yesterday that they have engaged some auditors that will turn MYSN into a fully reporting entity and will help it get listed on NASDAQ. All in all, you can’t blame MYSN‘s management team for not being ambitious enough. But can they really pull it off?
That is for time to tell. One thing is for sure, though – getting listed on one of the national exchanges is not the easiest thing in the world for an OTC company. And some things suggest that MYSN might not be the perfect candidate.
For one, the new majority-owned subsidiary doesn’t seem to have much internet presence outside MYSN‘s press releases which is somewhat weird considering the massive revenues and profits that it’s supposedly generating. MYSN, on the other hand, does have a website, but thanks to the magic of Google’s Image Search service, we can see that an alarming number of pictures found there have been “borrowed” from other websites. That’s not something we’re used to seeing from companies that are about to go to one of the national exchanges.
Despite these niggles, the management team said yesterday that they’ll file a Form 10 statement with the SEC within the next month or so and if it contains some positive figures recorded by the Vietnamese subsidiary, it will remove all shadows of doubt.
Investors, for one, reckon that this is exactly what’s going to happen. Yesterday, after they heard the news about MYSN‘s new auditor, they started jumping in and in a matter of six and a half hours, they pushed the ticker up by a massive 133%. It did prove to be quite volatile throughout the session and it actually closed it way below the massive gap up at the open, but MYSN also booked a dollar volume of just under $500 thousand which could suggest that the ride is far from over.
And this might be good news for “two outside consultants” who received 16.1 million shares during Q1 in exchange for services. The way these shares were valued remains undisclosed, but we reckon that considering their potential effects on the stock is something you should probably do before jumping in.
