Question to the board - I traded ABAT some time ago when it was in the 2.00 dollar range
But have not followed the company after it went to the pinks (ouch). Are they toast or getting
unfairly toasted? And what are your thoughts going forward. Thanks
We sincerely hope all strong buyer’s reasoning and anticipated events will have a positive impact on ABAT share price, but do you really believe any new investors will buy into a company that treats shareholders as ABAT’s has treated its shareholders for the past 2+ years? Maybe, but only if they don’t do their due diligence and like we all did our due diligence 4, 5, 6, 7-years ago, right?
With all due respect to the “buy” and “strong buy” posters on this message board, would anyone in their risk their investment capital in a stock/company that thumbs their nose and flips the bird to their stockholders as ABAT has for the past several years?
Here’s the real question I ask my self, will new money investors looking at ABAT now reading ABAT's history while doing their due diligence invest in ABAT? Honestly, the answer for most savvy investors is an emphatic “No”.
I consider my investment in ABAT is dead money, with the hope and a prayer I am wrong. To sell now, after 7+ years and my due diligence at the time, is only slightly better than ABAT share price going to zero. Please don’t take this the wrong way, we all hope ABAT magically arises from the ashes of its on making but I double it.
If this is the worst investment mistake I make in my lifetime I’m a happy investor. Here’s hoping the same for all ABAT shareholders past and present.
I am in the same boat. I did research on three Chinese companies. One (CNGL) has folded and I lost all my investment. One (SPU) is trading at extremely low value. ABAT is my third investment. I will stick with US companies.
"But have not followed the company after it went to the pinks (ouch). Are they toast or getting
ABAT sent themselves to the pink sheets, by not doing so much as to take 5 minutes of time to submit a response to the delisting notice they received, to allow them to stay listed for an extended period of time due to the unforeseen leaving of their CFO.
MANY companies have been given delisting notices, and MANY of those companies submitted a response that allowed them to remain listed for the time being ... but not ABAT - they chose to be delisted ASAP!
ABAT now has a multi-year history of NOT doing what is in the best interest of shareholders. Until they change that, the company's shares are toast, IMO.
Prior to the short seller attack of 2011 ABAT typically expanded operations on a three year cycle. This progresion is to invest (spend) and have share value slump. Then profit for two years with share value rebound. Before the short seller attack of March 2011 ABAT traded around $3.70 per share. And had over 10% of shares institutionally owned. When share price dipped under $1 in 2011 institutions were forced to sell per guidelines of stocks having to be priced over $1 per share. The result of the above mentioned issues and obstacles is the current price of 22 cents.
When legal action against ABAT is closed I expect ABAT to list on a China Exchange or go private. This will lift share price and begin institutional buying. To what price, how high?
ABAT will continue to suffer from the current short attack and follow-up legal action. Some investors will be unwilling to trust any Chinese company regardless on product and profit. The good news is ABAT is now 1/3 bigger and is sure to be more careful with filing and regulations.
The net outcome of all of this should be a trading price somewhere in the $2.50-$3.50 range. Could ABAT trade even higher in 3 or 4 years? The answer is, 'Yes'. With steady growth and adherance to regulation ABAT will heal from the wounds of 2011.
If I were on the Board Of Directors I would offer $2.65 per share in a buy-out. This is the price the CEO purchased in 2009. In five years ABAT will be worth much more than $2.65 per share. But, shareholders may not be willing to hold for this high figure. I hope to see an offer before December 1st, the start of tax sell-off season.