As I read it, the controlling interest of this company wants to sell all of their shares in a public auction. The starting price is $5.16. What I don't get is why would anyone buy at $5.16 when they could have bought at between $1 & $2 for the past year? It doesn't make sense. It's not as if someone is bidding for the company!
I remember the Chinese pump and dump surge many years ago. Anyone remember CHNR, EFUT, etc.? Are these pump & dumps backs?
Two + - yrs ago there was a scandal on some "Gangsters" stole ownership of the Chinese GOVERNMENT WHO OWNED IT, WAS STATE CONTROLLED like all business in China were before they opened up, the crooks (3 of them) they went to jail or were put to death, so now the C gov has cleared the way to auction off the shares, the value of the auction is within a right price range for the asset value on FFHL worth..Do your own DD.
Yes... after the IPO a few years back and stock hit $17, news broke that the equipment used to make the plastic film was purchased from some shady Chinese govt officials for far less than market value..... fraud and hearings followed and long story short the Chinese govt then came in to keep an eye on things and took a controlling interest in the company..... now a few years later after the old management had been removed and new management has run the co without issue, the Chinese govt is ready to move on. Investors will be willing to step in now to release the true value of the company that were hesitant before knowing the Chinese govt was running the show. Figure stock is worth somewhere around $6 (China knows what it is worth - they did not just come up with $5 out of thin air) and they are looking to sell at a discount to ensure a quick sale.
What are you missing? The company was just notified by Nasdaq that unless the value of their outstanding stock goes up they will be delisted. They had to do something !!
'BEIJING, July 26, 2013 - Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) (“Fuwei Films” or the “Company”), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that the Company received a letter from The Nasdaq Stock Market on July 25, 2013 indicating that as a result of the Company’s failure to have a minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000, the Company is not in compliance with the Nasdaq requirements for continued listing set forth in Nasdaq Marketplace Rule 5450(b)(1)(c).'
Sentiment: Strong Sell
Don't know why they want to hold to their Nasdaq listing so bad. They could always move to over the counter (pink sheets). And how will this quick pump continue to hold it's value? All I can think is they're just dumping shares as a last resort.