Trans Global Group, Inc. (OTC: TGGI), is incorporated in Delaware but has headquarters in Shenzhen, China. As an investment company looking to complete a merger or acquisition with companies in China’s liquor industry, TGGI is apparently the dream of singer Chen Ren who produced liquor before purchasing TGGI as a vehicle for his NASDAQ dreams. TGGI stock has been on a run as speculation pushed the stock price to almost $.03 – a 205% increase since November 3rd. However, TGGI dipped to $.0214 on November 10th as investors took profits, leaving many wondering where TGGI stock will settle.

Catalysts

Chen Ren aka Ren Feiyang, founded Zuixiangui Wines in 2019 before purchasing Trans Global Group, Inc. with the aspiration of eventually uplisting to the NASDAQ. This appears to have set off a series of events that excited investors enough to give TGGI a loyal following on FinTwitter.

Feiyang is also the Chairman of Zuixiangui International Holdings Group, which has emerged as a leader in China’s specialty wine and spirits sector. The company was interested in a reverse merger which would take it to the NASDAQ. Currently, the entity owns an alcohol brewing and filling site, an international holding business center in Hong Kong, an alcohol marketing center in Shenzhen, as well as a VIP Club. All together, it seeks to be an integrated enterprise which includes liquor manufacturing, development, production, and sales.

Excitement regarding this possible reverse merger rallied TGGI shares by 4,900% over two months without the company releasing press releases, filings, or any official communications – an indication of the considerable momentum TGGI is riding on.

With the goal of entering the US market first through the OTC before uplisting, Zuixiangui International Holdings Group appears to have explored merger and acquisition possibilities with various entities such as Guangdong Jasley Nano New Materials Co., Ltd which works in the nano-water paint materials and decorative materials industry. Ren Feiyang met with Jasley’s management to discuss capital mergers and acquisitions with plans to “hold a press release on the strategic mergers between the two parties in the near future”. The ultimate fate of these acquisition plans is not clear, but M&A’s are likely a key part of bringing TGGI’s valuation to the minimum $3.00 per share required for listing on the NASDAQ.

In the meantime, the company appears to be actively building new partnerships and ventures. In March, Hong Kong Zuixiangui International Holding Co., Limited was incorporated as a private company registered in Hong Kong. Since then, TGGI’s wholly-owned subsidiary has built a relationship with Shenzhen Quark Times Online Technology Co., Ltd. which has been working on a “Jiuzhuan” shopping app. Their in-depth cooperation is designed to give exposure to Zuixiangui branded wine and cooperative products in a fully integrated platform that will easily connect products with consumers.

However, around the same time news was released with Shaanxi Palm Venture Capital Co., Ltd. affiliated with the TGGI ticker. The investment institution is apparently focused on health and smart technology with an interest in: international wine, women’s health, health products for the youth and elderly, and biopharmaceuticals. The connection between Shaanxi Palm Venture Capital Co. and Zuixiangui International Holdings Group is not clear at this time but perhaps will be revealed in the future.

Representatives of the company also attended a nano-Ganoderma lucidum sauce-flavor liquor seminar at the start of the year which included Tang Jiacheng, President of TGGI and Chairman of Hong Kong Sincere Investment. The seminar illustrated Zuixiangui Liquor Industry’s interest in nanotechnology’s application for wine and sauce production. Following up on the seminar, it initiated joint research and development with a number of nanotechnology laboratories to “increase the core competitiveness of Zuixiangui’s products and the cohesion of the brand”.

More recently, the Zuixiangui Liquor Industry Group officially launched the “Internet + Store” 2.0 system intending to provide technical and capital empowerment for traditional liquor stores across China. The October press release details plans for brand empowerment “to establish a community of drinkers with different consumer circles” in areas of the country.

In anticipation of TGGI’s Q3 report, TGGI’s stock increased more than 205% since the start of November. However, on November 10th, Evergrande Group – the second-largest real estate developer in China – officially defaulted. The company has $300 billion in debt and if it is unable to pay its interest payments it will undoubtedly have negative ripple affects across the Chinese market.

A reminder of China’s market volatility, TGGI’s stock could be impacted by Evergrande’s default. However, in the long-term this default is unlikely to have a notable impact on TGGI although its run has been recently stalled by profit takers. Those very bullish on TGGI believe this company will be China’s next “unicorn enterprise” and are holding TGGI stock long term. With this in mind, many investors are taking this as a dip buy opportunity for TGGI stock.

Media Sentiment

You can’t talk about TGGI without @paulseo403 who’s DD goes deeper than the Earth’s crust. Let’s see if there’s gold at the end of this DD rainbow!

Is TGGI the next HMBL? @Stockminds009 seems to think so but only time will tell…

Technical Analysis

TGGI stock chart

Current trading at $.02, TGGI stock has an immediate support near .0197 and a secondary support at .0103. Its primary resistance lies at .0224 with a clear resistance at its recent peak near .0295. The MACD had a bearish crossover and a reversal does not appear imminent. The RSI has sunk to 41 after earlier overbuying. Although accumulation fell with the dip, its remained relatively consistent which could be a sign of a coming rebound.

Should You Buy

TGGI stock has moved massively on speculation seeing as very little information has been confirmed by the company. However, what information does exist could indicate TGGI’s potential for uplisting or becoming a major enterprise on the OTC market. Following earlier profit taking and fears surrounding the Evergrande crisis, TGGI stock price has dipped offering the opportunity for bullish investors to buy the dip. But until TGGI’s management confirms its future plans, investors could be taking a risk.

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