In less than two years this company has raised funds thru low interest Convertible Notes two times amounting to over $M400. All this was done without stockholders votes. Every time they issued the Convertibles it caused turmoil in stock price i.e., they did so at the expense of stockholders of record as the short sellers (may be the Note buyers) drove the price down.
As if this was not enough of a jolt, when the stock price was getting stabilized the management decided to sell a major part of the business, again without shareholders votes. This new too caused the stock price to plummet. And the irony is it was not via a competitive bidding process and was not the right time to sell at such a meager price of $53.5M and IT WAS SOLD TO THE CEO OF CMED HIMSELF.
Summarizing, it seems like the company has gone public to raise low interest capital in the US market to grow the business and take part of the business at a time private. MAY BE THEIR INTENT IS TO TAKE IT ALL PRIVATE. May be we need a Class Action Lawsuit against this company? ANY DIEAS?
CMED could be a big fraud. It recently paid big $ to buy a so called HPV DNA chip company which is a BVI company with operations in China. Interestingly, CMED bought its current FISH business from the same company in two years ago with big money. How come CMED keep buying new business from a company that nobody knows.
Secondly, if you know the HPV business, Qiagen's HC2 test is doing well in China. CMED's HPV DNA chip technology is not even heard in the market. It's not even approved by Chinese Food & Drug Administration for sales.
"suspicious" by the meaning of its word isn't "clear".
Altough I was aware of your argument, I chose not to sell. Wu owns 26.1% of shares, roughly 8.2 millions shares, valued at $145 millions now, valued at $245 millions at the time of HPV purchase. If this is a fraud, he is the one first going to suffer the most (You can say that he pockets the entire $345 millions, but would that be too extreme? China government isn't going to tolerate the fraud like this. The crime, if your imaignation be true, will certainly get a death sentence in China). So I might think the deal was over-priced (although IR Winnie didn't agree by citing the ability to detect 24 viruses and add-on gift on SRS technology, which similar deal didn't get) but fraud is extremely unlikely.
And your post at this particular timing is "clearly suspecious".