Great Wall Builders Ltd. – Latest Momentum Play
UPDATE: We no longer cover GWBU and this update is to close out our coverage with a summary of results. We alerted our subscribers to GWBU before the market opened May 16, 2012, a day when readers could have purchased this stock in the upper $1.40s range. For two weeks GWBU hovered mainly in the just over $1.50 range, and then in the third week it jumped into the $1.60s to $1.90s where it remained for another three weeks. Readers who purchased GWBU on May 16 in the upper $1.40s could have easily sold it three to five weeks later in the $1.70s to $1.80s range. Theoretically the maximum profit on this stock based on our alert was 37%, but in reality alert investors should have made profits in the 15% to 25% range. Not one of our best alerts, but a respectable return for roughly a month’s investment.
Original Post to This Site:
Our latest momentum play, Great Wall Builders Ltd. (OTCBB:GWBU) formerly provided homes with a solar integrated system in Texas until it ceased those operations. On March 19, 2012, the Company acquired the assets of dPOLUTION International, Inc. for stock. As part of the transaction, two officers of dPOLUTION purchased a controlling interest in Great Wall Builders.
dPOLUTION “holds certain intellectual property related to manufacturing and distributing an electro-cracking devise designed to reduce emissions, lower fuel consumption and improve engine performance.”
Great Wall Builders has reported no revenues in over a year and has negative equity as of that date. It has not yet filed a 10Q for the quarter ended March 31, 2012. GWBU began trading on April 4th and was very lightly traded until May 10th when volume exploded and the price doubled. It has attracted a huge amount of interest.
As with our other momentum alerts, we bring this company to your attention because of the increase in investor awareness and we believe things could get interesting very soon. However, GWBU does not seem to be a good prospect for long term value investors at this point and is likely only appropriate for risk seeking investors prepared to lose their entire investment, but might offer early investors a chance to make a large, exciting profit as a short-term play.
As we said, GWBU is only for those looking for a highly speculative play. All the attention paid to GWBU will likely drive a lot of volume, but this does not mean prices will go up.
Investors interested in GWBU should be prepared to get in quickly when they feel the time is right, watch the stock closely and take their profits (if any) at a level they choose. On the buy side, we recommend that investors limit their bid price so they get in at a reasonable price. If the stock turns out to have a dramatic price rise and they miss – Latest out because of a low bid, there’s always next time. In our opinion this is much better than getting stuck buying near the peak price.
Investors in GWBU should be prepared to lose their entire investment. Always remember to do your own due diligence, checking up on company filings and consulting with an investment professional.
Additionally, remember our disclaimer.
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