The 1Ok filing with buy back of the bond means the management didn't give up its US listing. This is a very good news. The price should gradully move higher from here. If the company can buy out the rest $49 million bonds using $15 million cash before 7/2013, AOB stock should fly again.
It looks like a 67 million dollar loss hasn't motivated many. I can only hope that this 10K is a prerequisite to a buy out offer. I do agree with jzhang1966 that there is possibly still a lot of tangible value left here. I also don't see any motivation by management at this point to try hard to paint a pretty face on the company. Law suits pending, discredited accounting, and accuzations of mismanagement (at best). I'd play up my injuries if I were them. If there is any thought of buying the company back at some point, it's in their best interest to paint things as bleak as they can.
There is no point to paint, if I were them, I 'd be buying back shares at this point rather than paint hard a bleak picture. They have to offer a fair price or the remaining shareholders won't approve the deal, they need the majority of the remaining shareholders if Tony was to do a MBO.
It's pretty obvious that as much as there lack buyers, there are even less sellers at this level. The low volume is caused by large difference between bid and offer, maybe a few 100% in between.
What's the point for the management to stay listed in the US this point onwards is beyond me, sooner or later, someone will point out maybe another #$%$ or some other investigation is needed, and then they have to spend millions and months again.
I took a closer look at the 10k and it seems that the management had very little influence this time, if you look closer, u'd find that goodwill being written off completely but properties appreciated by 40mln, that's hardly painting a bleak picture, they could have used historical if they wanted, but obviously this had to be done by the investigating auditor (not weinberg I assume).
So if investigation is reflected in this 10k, that means the fair value, at least the tangibles are at least 10-11 dollars(land use right in china is part of the property). Operating cash flow is positive, loss are all non core and one offs, so they can't paint worse pictures.
The only thing I think they are waiting for is for the lawyers to give them the green light to buy back stocks, then they would buy back like crazy before a possible buy out, that's the only thing that make sense to me.
All these while we assumed that the management are the worst kind, but hey, what if they are actually not that bad? What if they are victim of the circumstances? What if they offer a fair price to buy out the company? After all, you can't be a #$%$ to run a company in China, u still need to be fair by and large, AOB actually has been pretty successful, going from a tiny little state owned old dog to today, it's not easy, you can't be completely a #$%$ to do that. That said, they clearly did screw bondholders, almost intentionally, with the help of circumstances though. Would they do the same to shareholders? I don't know. My understanding is that we cant rely on other people's good intention. What can I do? I have been buying like no tomorrow for the past few months, and I am keeping buying, until I get enough shares, and then I gonna bid much higher myself.