For quite some time, a seemingly endless supply of shs have been available at 1.90 - 1.93 (to include now at a time when even acceptance of the 2.00 offer has been acknowledged). What if Lj has made an informal agreement with Yu Zhen to make x+ shs available at this range with Yu Zhen's short term profit guaranteed. While it's only a 4% gain +/- , on a large enough investment, it could mean big dollars. This might be a way of buying him off. Call me silly but I'm not making sensse of this action otherwise.
I still contend, and this is only an opinion, that the real money to be made by the insiders is after a threefold move---(1) drive the pps down with the deemed dividend factor and increased sales and marketing exenses (done!); (2) accumulate shares from anxious shareholders; and then (3) go the IPO route after increasing the eps and pps. Whether an independent shareholder benefits as well is more speculation---it's a risky hypothesis but if the intrinsic value is truly $5.32 and the actual book value is in the high $3.00 range, "holding" sounds like the position.
Most posters on this board, I feel, would still consider LJ International (the enterprise) a solid growth stock----the big question is will it pay off. It's a gamble for sure. The major institutional holders (and 5%+ investors) increased their holdings to 25% from 19% if I interpret the numbers correctly---smaller investors are cashing out.
I'd appreciate a critical response to my hypothesis---this board has some savvy investors.
dark... I've always respected your opinion not to say I always agreed. I'm going to leave it to the rest of the Board to more fully comment on your post after I repeat once again... there is NO WAY we will own our shs when the IPO takes place. I have posted why I feel this way in the past.