I encourage all long term investors to get a visa between now and the Fall and come to the next shareholder meeting. I look forward to meeting all of you.
Here is my most recent letter.
I was impressed with the production and capacity of Dongguan.
I encourage anyone who has a long term position or a large position in this company to visit China and take a look before selling and see the impressive and well-run company that you partially own. Also, unless, someone has seen the facilities, take what they say with a grain of salt. I respect the shorts or skeptics who offer substance and refrain from intimidation and personal attacks, but I can say this is not a pump and dump. In my humble opinion, this is a buy and hold.
If you are short, I would advise caution. All the facilities were functioning and I personally do not doubt the SEC reports. Due your own due diligence.
I have not changed my opinion and I am still long this stock.
China Daily, May 18, 2012
China will put 26.5 billion yuan ($4.2 billion) in subsidies toward promoting the use of energy-saving household appliances and products, replacing a similar policy that ended last year.
The country will allocate a further 6 billion yuan in subsidies toward purchases of vehicles that have engines that are smaller than 1.6 liters, according to a statement that was posted on the government's website.
BEIJING Saturday, May 19, 2012 at 6:38:26 PM
Thank you speaking with the company it was most enlighting and informative. I will be on the road during the next few weeks. We hope that you enjoyed your visit in the PRC. On your next visit maybe you could stop by the palace and visit.http://english.gov.cn/
There are a number of no cost ways ABAT can boost share value 20% today. Either they see no advantage to do so. Or it's not a priority at this time.
Earlier this year we saw sustained buying at $.50 per share. Since that time the price has ranged $.43 to $.53 per share. Whoever was buying at $.50 expected a move higher from that level. And may have inside insight to a much higher target price.
Whether ABAT trades at $.40 , $.50, or $.60 per share. It really doesn't matter if the goal is $3 per share. I believe this is the answer to the question ”why”.
Produce product, continue worldwide distribution, maintain cost controls.
I'm not worried about an up-date, other than the fact that the news 'blackout' is eroding share value. It's important to understand if this is an ABAT strategy or not?
Share PPS is an important factor in any buyout or 'going private'.
In my mind its essential to find out why ABAT is not supporting the market share price. Is it because:
a) they are buying back shares?
b) they plan to take the company private and see a low PPS as an advantage?
c) there is a potential buyout and Fu will be rewarded eg a promise to buy back his shares at his cost plus a share allocation to stay on as CEO?
d) there has been a delay in information due to a strategy attached to the court action?
In any case, we need to know ABAT's policy re any action to (a) Privatize or (b) a Buyout.
Hopefully Joel can shine some light on this issue.