some facts, page-102

For all those who accuse fluffy of misleading information in attempting to discuss this stock I would like to add my 2c worth... again if I may.

Hi angry,

In your reply to fluffy you offered the following...

"you made reference to Richard Li running both companies...SSI do not own stock, have nothing to do with GCN at all... I just hope no one sold today due to misinformation"
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You accuse fluffy of "misinforming" however was it not the same company under the directorship of Mr Richard Li from GCN and Teddy Cheng who provided SSI s/holders with a $15.21c per share valuation in this SSI - Half Yearly Report and Accounts - 01 March 2010?

I would also encourage some to take a closer look at the following information announced to GCN and SSI s/holders on September 07 2011 which I believe should also be relevant to CNC/Priority One share holders:

"We would like to advise that as part of our preparation for the lifting of suspension of SSI shares on ASX, the Company has just completed the disposal of its shareholding in GCN, 173.37 million shares at 0.5 cents each, realizing net proceeds of $815,000."

SSI - Disposal of equity interest in GoConnect Limited 07 September 2011

The following questions require some answers:

* Why were GCN shares disposed of @ $0.005c when GCN was trading @ $0.019c?

* Were these shares transferred off-market to SSI Nominees Pty Ltd and if they were why was no "Change in Substantial Holder" notice received?

* Who are the share holders of SSI Nominees Pty Ltd?

From GCN's 2010 to 2011 Annual Report SSI Nominees Pty Ltd holdings have increased their holdings from 77.5mil shares to 240mil shares without providing any notice to the ASX?

GCN Annual Report - September 30 2011
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Priority One

Shareholders of CNC were advised in a October 4, 2011 "Company update" that the Supreme Court had wound the company up in December 2010 and although investigations are still continuing to this day, it advised, "the return to CNC creditors and s/holders was not likely to be significant."

How can the "Independent Valuation" of over $270 million dollars be taken seriously when it has already failed to produce any revenue for now liquidated Consolidated Capital Investments (CNC)?
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In April this year "Insured Group" - a company listed on the New Zealand stock exchange under "NSX:INS" announced the following to Insured Group's share holders:

"Priority One is a newly formed public company which has aggregated established major reward schemes globally operating as a loyalty, rewards and incentive marketing business delivering solutions to companies, associations, member groups and consumers. It currently has agreements with a database of members and associations conservatively estimated at 10 million in Australasia.

The Company announces that it has today incorporated a joint venture company Priority One Insured Pty Ltd (ACN 150 631 119) as the Company to specifically maximise and manage the joint venture with ownership as follows:

Insured Group 51%
Priority One 49%

The Board of Directors consists of Peter Stafford, Sam DiGiacomo, and Wayne Miller.

NSX:INS - Strategic Acquisition Announcement / Priority One - 28 April 2011
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... 5 Months later GCN made the following announcement:

GCN - Priority One to acquire 51% of Insured Group NSX code INS - 26 September 2011
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Last week the following concerns were published on a New Zealand Insurance News website:

"Insured Group’s auditor has raised concerns about the future of the business due to rising losses.

In a report included in Insured Group’s 2011 annual report for the year ending June 30, Grant Thornton noted the company incurred a net loss of $4 million and a net cash outflow from operations of $6 million during the year.

“The consolidated entity’s current liabilities exceeded its current assets by $8.9 million and total liabilities exceed its total assets by $839,000,” the auditor said.

“These conditions, along with other matters, indicate the existence of material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern.

“Therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.”

Insured Group MD Wayne Miller declined to answer insuranceNEWS.com.au questions about the auditor’s report and how the company plans to deal with its current financial difficulties.

Grant Thornton says the ability for Insured Group to continue as a going concern will depend on it undertaking a capital-raising of a minimum of $2 million in the first quarter of 2012.

It also says Insured Group would have to achieve a successful listing on the Australian Securities Exchange and a return to an operating net profit and positive cashflows through active management of the current levels of discretionary spending in line with the funds available to the company.

"The auditor says there has to be revenue growth from the Priority One joint venture and Insured Group will need the continued support of its bankers"."

Auditor worried about Insured Groups loses - November 28 2011
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By now some must be a little confused as to who actually have ownership rights over this failed "Priority One" business:

Is it the failed Centurion Securities and Investments, Consolidated Capital Investments, Insured Group, GoConnect and/or Sino Strategic Investments, Chinese parent company CY Foundation or perhaps the non-existent, "Novel Orient limited" or "Shanghai Reliance Technology"?
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Consolidated Capital Investments Limited (CNC.ASX) has agreed with Centurion Securities & Investment Services Pty Ltd (‘CSI’) to establish a joint venture arragement whereby CSI will allow CNC to utilise wholly owned CSI entity, Priority One Rewards Pty Ltd. Post discussions, both directors of CNC and CSI determined that the most appropriate way of utilising the Priority One Rewards asset was to form a collaboration whereby 51% of the business would be owned by CNC and the remaining 49% to be retained by CSI.

Both parties agree that the cross utilisation of each others assets will enable Priority One Rewards to realise its inherent value providing significant returns for both parties. As such, and under the arrangement, CNC will not provide to CSI any compensation as a result of its involment in the joint venture.

Whilst at its initial stages of operation The Board of CNC are attracted to the impressive structure of Priority One Rewards and as such will amalgamate all CNC controlled distribution platforms and operate these via the Priority One Rewards platform"

CONSOLIDATED CAPITAL INVESTMENTS LTD (CNC)Status: SUSPENDED from ASX
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As Mr Richard Li and Mr Teddy Cheng are both named on the board of the suspended Sino Strategic Investments which has on many occasion has also been stated as the "parent" company to GoConnect the following information should also remain relevant to GCN s/holders...

SSI announced the resignation of Mr Theodore Cheng in March this year citing "personal reasons" for his departure, however imo both GCN & SSI shareholders probably deserve to know a little more of the truth and perhaps some questions should be raised with the ASX as to why SSI and GCN shareholders have been kept in the dark...

SSI - Director Appointment/Resignation - 09 March 2011
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August 2010
The Company was notified by Mr Cheng Chee Tock Theodore (“Mr Cheng”), the Chairman and executive director of the Company, that Mr Cheng and Ms Leonora Yung, the spouse of Mr Cheng, a substantial shareholder of the Company and the Vice President of Human Resources & Administration Department of the Company, are currently under the Investigation initiated against them in their own personal capacity by ICAC for an alleged corruption and use of false documents to deceive the board of directors and shareholders of the Company in relation to certain property transactions.

CY Foundation’s P2P game tournaments mainly feature Asian & Western casino games such as Texas Hold’em, Doudizhu and Mahjong. Earlier in May this year, some gaming machines and software owned by CY Foundation were confiscated by the police in China as they were allegedly used for unlicensed online gambling.

Founders Of Major Chinese eSports Company Arrested For Corruption
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Maybe closer scrutiny of this announcement from GCN on 24 October 2011 provides more evidence of the caution required when investing in some of these companies:

"Priority One GoConnect China and Shanghai Reliance Technology will aim to replicate the success of Priority One in the western world"

With the acception of "Novel Orient Limited" and "Shanghai Reliance Technology" which do not appear to have any legitimate corporate history at all, it is still somewhat of a bold statement when also considering Consolidated Capital Investments, "Priority One" has completely failed to attract any revenue to date for CNC s/holders?
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ASIC: Change of Name: PRIORITY ONE NETWORK GROUP LTD

CNC - Priority One - 21 September 2010

Chairman and Executive Director Mr Cheng charged for fraud by the Independent Commission Against Corruption - 07 March 2011

ASX:SSI - Notice of Mr Cheng's Resignation 09 March 2011 citing "personal reasons"
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In response to press enquiries, an ICAC spokesman today (Wednesday) confirmed that five persons had been arrested for suspected corruption in an investigation. Arrested in an operation codenamed "Mountain Green", which commenced on Sunday (August 29), were two senior executives and two former staff of a publicly listed company, as well as a financial consultant.

The ICAC commenced investigation after receiving complaints, alleging corruption in connection with property transactions.

It was also alleged that the arrestees had used false documents to deceive the board of directors and shareholders of the listed company in relation to the property transactions.

The arrestees have been released on ICAC bail. Inquiries are continuing.

Hong Kong Stock Exchange - watch dog site - C Y Foundation Group Limited
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To those here who do not wish to discuss some of the importants facts related to this company and their business strategy, allow me to offer my opinion for whatever it's worth... or not:

China is a big country!

If you think a small struggling company from downunder Australia with a somewhat colorful history, failed ventures and no capital can compete with the giant players of this world who are themselves all agressively pushing the tough Chinese regulators for their own piece of this small IPTV cake...

... Time to open your eyes!

"The uptake of converged services (telecom and media) has been hindered by the significant regulatory barriers between the two key regulators - the Ministry of Industry and Information Technology (MIIT) and the State Administration of Radio, Film and Television (SARFT).

As a result of the diverse approaches and regulations imposed by the MIIT and the SARFT, there is low uptake of IPTV and mobile TV in China despite industry players' eagerness to offer these converged services."

China's network convergence raises new challenges - September 13, 2011