because u r from $hit place in china, look down by people from cities....
your stupidity is well displayed here.
they are nailing your grandpa's coffin, time to cry..
there is old saying of stubborn people: $hit won't cry until seeing the coffin..
coffin is there, STP Chairman steal the coffin in Cayman island....
US court wants to cremate you....$hit....
Not sure why you keep bringing up A shares. STP is on a US exchange. A shares behave the way they do because of peculiarities that do not apply here. Nobody that owns STP cares how A shares behave.
Bonds won't get much, and equity will get even less. Probably just a token 1% stake after all is said and done. I'd expect 5% if it was just a straight up debt-to-equity swap. But once you throw in a strategic investor who is injecting cash and assets, 5% is probably way too generous. If bonds are only getting 35%, stock certainly won't get 5%.
Valuation will actually be the main driver for the stock's behavior once dilution takes place, although it's not going to be a gentle long-term adjustment in the way valuation usually works. The share count is instantly expanding by 100-fold and the share price must fall or the valuation will also rise by 100-fold. If the price is too high, there will be a flood of value-conscious bondholders who will sell their newly acquired shares, driving the price down to a level where they are indifferent between selling and holding. It's a mechanical process rather than sentiment-driven, similar to how a stock's price adjusts after it does a stock split.
Regardless of how bullish you are on STP, it makes no sense to own the stock here. You are better off buying after the dilution. The concerted selling of the bondholders may even let you get in at a bargain price. This is of course assuming there's a dilution at all, and STP doesn't just go into Chapter 7.
Walt, I hope we can still discuss rationly. You are right on a lot of value talks, but this is STP, a dangerous stock for both longs and shorts. Sometimes you need to look at the bigger picture and have a little street smart. Valuation talk are not always consistent with stock price. If STP indeed becomes wall street darling again, they will have a different evaluation. Secondly I think the dilution would fall between A shares and American companies. Bonds won't get that much in your calculation.
They have no bargain rights, and they can tell what Wuxi did is actually benefical to them so comprise should be expected.
I believe it is a done deal already. Now they just paly their parts for the legal process and paper work. I think this outcome should be accepted by all parites involved.
Even in your blue sky scenario with the company being worth $1.5B, equity will get diluted down to 1-5%, which is only $15-$75mil. The current market cap is $130mil. It's pretty much impossible to make a plausible bullish case for the stock here and you just proved my point.
I have never saw a low level jerk like you before. I made money on every trades on STP this year. How about your naked calls today?
You are now banned from website!
Long and Strong STP!
May the sun shine brightly on STP and burn you shorts!
Sentiment: Strong Buy
u were from Chinese $hit hole, back ward countryside, have no clue about how stock market works.
u r going to lose your grandpa's coffin money.
do u have to wait until nail into your coffin to start to cry????
pipi, no p4!! #$%$.
what deal with wuxi guolian???? i bet u from a worse place than wuxi...
fXXking idiot. Can't play the game well, only ability to insult people. BTW, All my trades with STP made money this year, including last Friday's trade.
Well Said qiqi !
Long And Strong STP- May the sun shine brightly on STP!
Sentiment: Strong Buy
So how is the game played out evetually? Bond will swap, since STP refused a 80:20 conversion rate before, I expect to swap at a lower rate: Let's see 65: 35? Since BK has been filed, and the situation is clear. The major bondholders will be happy to still have the deal. Chap 7? BK has been filed, and major rules under this situation, I don't think they win if the bondholders sign the swap agreement before that. The worst case scenario, is to pay those 1.6m, not a big deal either.
So I suspected before bondholders should have some sort of guarantee otherwise they won't agree to swap. I guess the guarantee is Guolian to inject cash, or other assets. It seesm I was very right! So the next step is Guolian to take control of new STP by injecting 1.5m cash, plus some solar assets, likely P4, and a new company formed this year with lots of solar farm developing projects. If I were Guolian, I may even persuade CDB to swap their loan to GSF to equity too. This is another big dilution to both bondholders and equity holders.
So now let's look at new STP again: Best solar panel factory P4, lots of solar farm projects including GSF and Guolian's. Does it sound like CSIQ now? Look at CSIQ's price now. CSIQ's market cap is close to 1.5B now. I think the new STP will be bigger. Bond has a very good chance to get all their money back by the swap.
What about Shunfeng? I still don't know what is Shunfeng's role. Shunfeng is a small company, but it has signed so many big contracts. They are saying next year Shunfeng will build 3-4 GW solar farms. That is a ridiculously high #!! How can they do that? I think maybe sometime Shunfeng suntech will merge with Guolian suntech so they can raise money from NYSE (yes, you are right, I believe new suntech will be back to NYSE sometime) to develop the solar farms.
I think this is the win win situation. Only retail shorts will get burned. I will be happy to see #$%$ jack gets burned since I have never seen such a low level jerk before.
Your right- Jack is into himself- a self serving --- ----
Long and strong STP- This company could still pull off a miracle- great technology with a need for the world!
Remember SIRI radio -from a nickel and a few days from bankruptcy to a thriving company!
Sentiment: Strong Buy
I always be prudent and don't want to say too much to mislead people, but since there is some aholes keep big mouthing, so I will share my thoughts with longs.
I have played with Chinese A shares and American stock market. If STP was in A shares, it should be still $5, if STP is American company, it should be 0 now. I think the outcome of STP will be in the middle of A shares and American companies.
I saw some retail bond holders speculation on another site. I think they are missing the big picture here. Wuxi suntech is actually helping them by transfer Zhenjian Rongde to Wuxi suntech.
P2, P3, and Zhenjiang Rongde are not competitive in the market any more. They are old factories with the product costs significantly than other Chinese solars such as TSL, CSIQ and YGE with newer product line. Those are toxic assets! P4 is the best among all solar markers.
Wuxi Guolian took P4, and sold the rest toxic assets, also get rid of some debts. This is the best way to get STP back. The major bondholders know this but retail bondholders are still thinking Wuxi took bondholders' pie. Because if you treated STP as a western company, goes directly to bk and started a fire sale, they may get 15-25 cents per book value so Chinese banks will take all, and bondholders get nothing.
The major bondholders reached a dealw ith Wuxi guolian already. I have no doubt they will stick to it. I think it is benefitial to both parties.
qiqi, don't even bother. some people just don't deserve your time. Long or short, we respect people's different opinions and open up our minds to hear both. But some people just don't deserve any respect. They probably have no clue about the Golden Rules of life.
Some nice in-depth comments at the Credit Bubble Stocks blog. Read the comments for the post called "Suntech's Joint Provisional Liquidators Don't Want to Dance the Suntech Shuffle Step?"