In hind sight from 30 it makes a lot of sense for 2 reasons. The share offering, anytime you dilute shrs big time you can expect shrs to fall. Note, altough the total shrs increased by only 13% from 25.35 mil to 28.6 mil, really it was more like a 44% or 50% increase in the shares available for trading. How many companies that ever diluted shrs by over 40% can you name where the stock price kept going up over the 3 to 6 months that followed that dilution? The float before was 7.45 mil, now its 10.7 mil.
Then consider the companys guidance lately In conference call the total growth of the company is predicted at only 17%, with 13% more shrs out that means essentially flat to only 5% earnings gain.
In the 10K growth for the Desulphurization business predicted to grow at only 5%. Desulph is 60% of their business. The water and sludge treatment is cool, but this has largely been a desulphurization play, where in 2 or 3 year when most sinters are converted there will be minimal if any growth.
As for the way they have handled the accounting numbers and questions on the BOT, plus the CEO borrowing money, I don't know? I suspect the CEO will pay this back and that issue will fade, but are they another FUJI or are they part of the Chinese bubble that Chanos and some funds think will pop, I don't know.
But I certainly wouldn't bet againest em at this price where the P/E is only 10ish, that is for sure.