We are shareholders of HPJ, those $100MM is payment toward owning & controlling more than of ALL subsidiaries of HPJ. Those $100 is larger than the networth of HPJ. How is HPJ going to use the proceed to invest in companies with only minority interest? Collateralize loan? Or those money just stays with those subsidiaries that shareholders of HPJ have no saying?
What is your interpretation? Investing without "RIGHTS" is the proper approach? We are all waiting to see the respond from HPJ as to the format of how this deal is going to go down. We invest for profit, not for glory of CEO. Can you tell me what benefit can investors of HPJ get with such "TRANSPARENCY" problem?
That definitely will give rise to question of "TRANSPARENCY". After the deal is done, HPJ becomes a PE disposing their shares and control just to own a minority interest of several companies which HPJ have no saying in anything. Those companies probably might not even be subjected to any audit if new management choose not to. There will be no revenue to report on financial statement, just footnote on the breakdown of some basic data and conference call is just about the raising question, but answer by management is optional.
It more sounds like the second step after this investment is to provide some water down revenue in the future then take the company private on the cheap. But first they have to answer a lot of questions to the SEC because this deal sounds like taking HPJ private on the 'CHEAP" in a two steps process.
It is spelled Anshan not Ashay. I view it as a deal that is necessary. It will most likely be a brand new structure, but I am not worried about majority holders. The management is still running the company, and investors with deep pockets are funding the growth. I find it hard to believe that after knowing about this deal for 4 months that you just decided that you are against it.
of course I'll ask him. Have you for me answer for these Question ? What is your view? Do you wish the Ashay assumes 50% of the subsidiary companies? If 50% of the subsidiary undertaking are submitted. How does it look for the balance? Which part of the sales must then show HPJ as revenue ? Just half ? If then HPJ remain a publicly traded company?
the offer of Anshan co-operation is for the subsidiary of HPJ. If HPJ agrees it loses control the subsidiary. Now we have to consider whether it is a good thing for HPJ. Would not it be better if Anshan would invest 50% in HPJ by the capital? I am against this offer! Then HPJ would only apply as an investment company. And no own production feature. Operationally they have a say in anything. It would be a shame. I had set very high hopes on HPJ.
can read about it on Highpowers Chinese website, just need to use google translation, many big companies attended meeting including Nissan, Huawei and many more
Of course they have no idea when the deal will close. They are at the mercy of Lawyers and regulators in both China and the U.S. When someone asked them about the time frame to close this deal the exact words were "several months". Your guess is as good as mine. We have no idea if they will announce a contract regarding the distributor of the ESS or will they just start shipping to the "vendor". Also which month in the second quarter will they start shipping. In any case we have no clue about Q1 coming up in 5 weeks. Labor cost is going up. We do have a very limited expansion as Martik said they were installing a machine for HP. It looks like we will bottom out around 1.75 until next ER. You are right Elpaso, investors are losing patience and exiting giving "maybe" longer term investors (more than 6 months) an opportunity to buy at the cheap.
Sentiment: Strong Buy
Go to listen to the Q&A, HPJ did not disclose any information on time line of closing the deal, no guidance for 2016 because of "UNCERTAINTY", no alternative plan for growth without this deal, no plan for borrowing due to poor balance sheet, no additional information on projected number on ESS.
So almost 4 months since the deal announcement and 2 months after professionals were hired and we have no idea on this deal. No significant borrowing or expansion plan or deal announced that will increase future revenue & EPS. Investors were told just to wait, investing in HPJ will be dead money, of course some are leaving HPJ and not a lot of investors want to buy. More selling than buying in a small float, thinly traded stock (avg daily volume 55,000), HPJ down 44 cents (18.4%) to $1.95 on ER day and now another additional 14 cents.
100% utilization of existing equipment only. They have empty floor space to expand if they can find new revenue source and the financing. Due to the lack of size of the company, R & D and also the lack of growth last year, market perceives that HPJ will not be able to compete with other large size battery maker. Growth is the only way HPJ can attract investors.
They grew below guidance on top line and barely meet the minimum on bottom line last year. Price of their merchandise dropped and we don't have guidance this year. Only 9MM shares float, no interest by institutions. Without back stop by institutions, retail investors are no match to MM and hedge funds targeting thiese small cap Chinese ADR.
With no real growth in sight, no interest for hedge funds & MM to push up the stock price. Slow float & stock is thinly traded, this company should go private. To keep HPJ a public company means to me CEO have plan to expand the business huge enough for him to consider HPJ to remain a public company.
There must be a reason for CEO still willingly suffer the indignity of being a "NANO" cap company.
Despite being minimally profitable they are at 100% utilization. There is demand and that shouldn't change going into the future. Perhaps I am nieve but at this prices one would tend to think there might be other options for the company. I am a bit surprised that the stock price is as low as it is. Before the investment offering it was 2.50.
Pushing the exchange rate from 6.5RMB:US$1 to 7RMB:US$1 in Hong Kong RMB Exchange like the did in 1998 Asian crises.
That is what I thought also. But with recent currency fluctuation like the event in January when Chinese government trying to curb Soro's & the gangs from pushing the exchange rate from 6.5RMB:US$1 in order to slow down the out flow of USD, this transaction might slow down.
Understand it is still a outflow of $100MM USD to US first before it will go back to HPJ in China. (My guess). At that time dollar outflow was a very sensitive issue. Usually this type of friendly deal usually takes 3 months with the help of the professional, other may last for 6 months or more.
But CEO didn't even border to provide an explanation when announced the delayed hiring of attorney is an insult to US investors knowing most investors stay with HPJ because of this deal announcement back in November last year.