After the approval, QIHU buyout group can work directly with the banks for the currency conversion. SAFE is concerned about the monthly report, but won't care which day the conversion is done during the month. QIHU buyout group have strong connections with banks and financial institutions, they will get it done quickly with SAFE's approval. There is prediction that RMB will go to 6.8 to 1 dollar in the near future, the buyout group is aware that the delay can potentially cost them several hundred million RMB extra.
Very important and good point. The thought occurred to me that some of this recent RMB f/x weakness may be due to about 20 billion RMB being converted to 3-4 billion dollars with the QIHU transaction. The second batch in early June may add to the downward pressure of the RMB. There haven't been too many block conversions for RMB to dollars of the size of QIHU in the past. No wonder SAFE wants it in batches. And I also think doing so over two different months is a way for China to show a smaller monthly drawdown of dollar reserves. Spreading this out over two months smooths the downard effect on foreign reserves. If that's a major concern, SAFE won't care if conversion happens in early June or late June. But QIHU buyout group would presumably care. Thus, I agree that final conversion could happen next week and this wraps up fairly quickly.
QIHU is firmly above 74 today. I think the up trend will continue until the buyout closing. QIHU will probably be back to 75 in the next couple trading days.
Due to RMB weakness (lowest in five years) and upcoming Fed rate hike, QIHU has a big incentive to close as soon as possible. If the news about the SAFE approval is reliable, the closing may happen in the beginning of June. The current funding for QIHU only allows exchange rate up to 7 RMB to 1 dollar. The current RMB exchange rate is 6.59 to 1 and going higher. It will be unwise for QIHU's buyout group to wait too much longer.
Nonsense dummy very smart trader who pretend to be short BIDU but actually long. He make short look dumb. Fast Freddy fall for ruse and sell BIDU at low price. After that stock double. Fast Freddy sour on China ever since.
SEC investigation is definitely bad. I think it puts short term pressure on BABA. However, it is still the biggest and most profitable internet company in China, so it will bounce back in the long term. I don't have any position in BABA, may buy some if it is close to 60.
They are not releasing earnings and haven't for 2 quarters now. Obviously the result of going Pvt and delisting
Yes this makes sense plus QIHU buyout of Opera deal passing will give investors plenty of confidence, at a psychological level to now buy and hold Qihu. I think today we will see 76 with very little selling.
it seems the news about SAFE approval is credible to the market. Most people start to ignore the "impasse" nonsense from Bloomberg. Since China still has over $3.3 trillion foreign current reserve, the conversion will be done quickly after the approval. The first batch is probably done now and the second half may be converted as early as next week. If the market expects the closing to be around next Friday, we will see strong move to 75 -76 level by this weekend.
Excuse me, who is this nonsense guy he's talking about? I don't recall seeing him on this board, do you?
Sentiment: Strong Buy
I did not find relevant news for AMCN in the last two weeks. From what I read so far, this company has negative earning for years and has a couple questionable deals. AMCN has a buyout offer at $6 since September last year and not much progress so far. Since its business is not worth much without the buyout, it looks quite risky to me. I think owning QIHU is much safer compared to other Chinese stocks that are in the process of buyout.
I would agree. There was that 2nd dip to $67.50, and I was tempted, but I wanted to see it back at 65 again. However, there have been numerous instances that I felt that QIHU wouldn't go under 70 again...and then it does. It's all a matter of how impatient the shareholders become.
I don't know Chinese unfortunately any chance you could help me out and do a recent search for me in the last two weeks? I would greatly appreciate it!
I searched news in Chinese using google or baidu. I don't touch small stock like AMCN. It is too risky for me. QIHU is a much safer investment as long as you are not over-leveraged.
jinhuac2000 how are you able to find these articles over in China? I'm looking for any info on AMCN, another management buyout that's been killed with all the merger news out of China that looks to have been twisted around by media outlets in the US. I can't seem to find anything significant in the US and I can't find any investor relations people to talk to in the US to ask questions. Have you seen anything or can you see anything overseas that sheds some light on AMCN? Any help would be great! Thanks again!