I do not understand today's steep drop in our stock price-No news is not good news. Looks like someone is bailing. Company should be reporting soon and unless last quarterly report was totally bogus-we should be up 4 1/2% today and not down that much. Keep the faith.
Bank of China tightening reserve requirement.
Primer wants price control of residential housing.
Hong Kong will double its commercial RE stamp tax.
Several decent on Fed QE policy.
EU may impose tax if solar panel is sold in Europe below cost.
Copper price is stagnant.
We are basically controlled by the funds that sell off and to some degree shorts. This seems to be changing as more new funds come into the stock. Although volume has picked up somewhat; until trading hits about 200 to 250 thousand shares a day minimum, the stock will always be manipulated by small sell orders logically placed. The company really needs a qtrly divd (.125 cts a share) that would drive the stock up based on a decent rate of return. The positives that are announced each qtr along with the new cable potential seem to do very little especially when the CEO speaks about how hard it is to get money out of China. The company must find a way to benefit shareholders.
So long as the auditor oversight issue not being resolved, SEC has a possibility to delist Chinese stock especially small cap with many already went dark or private. US market also response to the negativity and is unwilling to give Chinese small cap RTO their multiple, as a result discount the #$%$ out of it as you have seen most of them have PE between 2 to 4. This will not change until these big issues has a resolution, I bet you for every one small cap Chinese stock that you find PE higher than 4, there are at least 4 to 6 similar companies have a PE lower than 4. It is just the way US shows the Chinese their displeasure of them not cooperating with the US mandate. XIN went back down 12% from the top eventhough they announced increase in cash dividend & they are listed in NYSE. Politics and Finance always find themselves in tune with each other, that is what I have seen.
What is a PE of less than 3 tells you? Why XIN is still trading below book value? They pay quarterly dividend & just hava another increase. Which short sellers have written a strong hit piece on XIN? XIN hit $2/share while paying dividend & doing stock buyback (small), why? Is there anything company specific reason? XIN is balance in leveraging their resources, pay dividend, doing buy back and why market is tanked them big time. XIN still trading like penny stock no different than LIWA.
Your guess is just as good as anyone out there, a small company with which according to all news media should not be trusted in general & might face de-listing in the US. Investor should stay away from LIWA, it is a lot of uncertainty by itself even without hit piece or some 120 companies went dark in 2 years. SShort sellers have the edge, period.
CEO said LIWA last year earning should be on target during last conference call 11/9/12:
CFO: we are reiterating our 2012 guidance and expect gross profits to be up $84 to $87 million representing year-over-year growth of 11% to 15%. And non-GAAP net income to be $54 to $57 million or 8% to 14% growth over 2011.
There may not have been news about LIWA but there's been some background noise. Negative call on emerging markets by JP Morgan, China putting the brakes on property purchases and some bearishness on copper. So there's nothing specific but stuff out there which might cause some weak hands to fold.