250,000 SHARES TRADED AND OFF BY ONE PENNY? Whoever bought all (near 100,000) of those shares at the end of the day, may have transacted between two accounts. I don't think someone would have tried to sell that quantity without having a known buyer. Could have been generated to realize losses and gains between regular and tax deferred accounts. All I know is if I were to buy 100,000 shares late in the day, I would have to pay $5.50. That said, the background on this company is good. The chairman owns near 70% of the shares and insiders own 5%. They have never sold any and this company has been listed on nasdaq for 10+years. Sales have increased 800%over that time and CAAS retired preferred shares last years with cash and then announced a $5 million common share buy back later last year. Company makes 3.5 million power steering systems a year, newer electric type, and hydraulic. For all vehicles including commericial heavy equipment. Chrysler- Dodge trucks and Jeep USA is a very large customer. Steering units must be very superior quality and durable. Any failures could destroy a auto company. CAAS also sells to 50+ other car and truck manufacturers. A new Jeep factory is being built in China, as we speak.
The Chairman has control and can take this company private in short order. Why not? Two reasons: First is transparency. Major auto makers require this from key suppliers. Disclosure/reporting about financials via U.S. Nasdaq reporting requirements is essential. Being a public company is also essential for gaining new business with new and existing customers.
CAAS also holds good patents for advanced technologies, and has tech agreements for anything they need in addition.
Well said about the company highlights, and it was definitely a well organized selling and buying plan for the last ten minutes, even though I still think it's not fair to us lowly retail investors. With regards to the company my only real problem with them is their inability to update their website. The last news release they have posted on it is their Q3 results from November (despite the fact that they have publicly released several news items since), and the last "industry news" they have posted on there is from June.
No kidding. Even with CAAS I've never seen that before, it was stuck between 5.30 - 5:40 for most of the afternoon and then with the last 10 minutes to go it just got brought down all the way to 4.90, and then sure enough there was a huge block bought at exactly 4 oclock. Something just doesn't seem right about that. How does it rise all day on 180k volume, and then all of a sudden in the last ten minutes less than 20k shares takes it down to 4.90, and then no price rise on the huge lot bought at 4 oclock.
If it was not options expiration, it would be very strange. But today was opex. At $5 CALL someone today bought 101 contracts and that is the total amount of Open Interest. It seems llike whoever bought CAAS in the early hours of the day also bought the March CALL options and pumped the stock up. If Market makers brought the price down to $5 or less that option would expire worthless and that's what happened. If you were the MM and had the opportunity to bring the price down so that you don't pay anything to the Call buyer, instead all he paid becomes your gain, what would you do? My concern is "who was the buyer today?" Was it an institution which I doubt or just an excited retail customer with large sums of money? If the pumping of the stock was artifical, the reality sinked in later on today. If it was the market maker covering his back at the end of the day and the pumping of the stock was real, we will see new waves of the same coming in the days ahead. It is unclear at this moment.