Hit a recent high around 250 then slipped back and is now treading water around 240. Other than a dull market, what other reason could be holding back this one? Sector underperformance? Possible government intrusion into their business affairs?
Right after you sold (and me too by the way), the stock started showing a little strength but I finally got to the point where I no longer had any trust in it. There are indeed many other stocks out there where you're not looking at a daily loss of 5% or greater for weeks at a time. Good luck to the brave ones who stick with it - you're going to need it - YY can be unusually cruel to its investors. I'm confident in the two stocks I'm now in and can rest easy.
How do you go about suing a company within mainland China regulated by ChiComs? Mission Impossible. Their only problem right now is overcoming the restrictions placed on them regarding buyouts and a return to China markets. The fundies are OK but short interest has escalated lately although by historical standards not anywhere near as bad as it has been way in the past. The P/E has drifted down to 14 and is approaching a ridiculously low valuation. Wish I could get a list of CURRENT holdings of major institutions to get a better idea as to where all the shares are being held. Haven't found any signs of support lately as though the institutions have reduced or abandoned this one.
Correction: Date above should be 2015, not 2016. Sorry.
The stock price closed over $80 that day which may have been when their offer was received to go back to mainland China. I need someone who's followed this stock to tell me when the offer was originally made. Market Realist said in an article that regulators were averaging about 260 days to approve these kind of offers. QIHU received their offer last June which is a year back so maybe the approvals have been all over the place. Investors are acting like that one is a done deal because its price has held up quite well while YY has plummeted as though it's a dead deal.
There's no new news and even the old news is pretty damn old yet in Wednesday's action it was mercifully horsewhipped and taken down hard. Can't find any strength left in it to fend off those who seek to destroy it. Being in a perpetual state of "hold" and on the come is getting tougher and tougher. If there's a ray of sunshine at the end of this tunnel, would someone please point it out? A fella can take just so much and then he's forced to bite the bullet and wave the surrender flag.
I sat on my Baxalta stock for months only to find out that the original offer was the concluding offer and since Baxalta was hovering around that figure, it was a total waste of time Both companies led us to believe that there was ongoing negotiations and that the original offer was history. Not implying that the same scenario will happen but you should take into account all of the various possible outcomes out there up to and including no offer ever being finalized or approved. I'm not the most patient person when it comes to things like this but you've got me and many others company playing the waiting game. Just how long I will tolerate it remains to be seen.
I didn't listen to or read the conference call so thanks for rattling my cage. I have to start looking at everything because this factoid could be a game changer. We here in the states are in the dark as to how this "regulator" problem is going to pan out. If going private is still a possibility, I may have to change my plans once again. If they're truly in a quiet period due to ongoing talks, I just hope it doesn't get drawn out for a long time. I've been in other biotech takeover talks before and the endless waiting was sometimes a big waste of time resulting in a tiny move up from what was initially rejected ( the Baxalta takeover comes immediately to mind).
External pressures are the real culprit here rather than focusing on the fundamentals of YY. The yuan is very soft and the dollar keeps strengthening causing Class A shares in China to lose value. Short selling of Chinese shares is 5 times what is was in the past. Even if today's ER would have been spectacular rather than just OK, I don't think YY would have maintained a spike for long. We longs are up against it and strategies have to be rethought. Another article about "regulators" looking at these problem areas might just reverse this troublesome trading.
You gotta wonder: was the reversal today after dropping below the 52 wk. low just a dead cat bounce or are there really folks out there anticipating a good ER Tues. morning? Or maybe short selling/covering? Anyway. the punishment may very well be over Tuesday morning and our frowns will turn into big smiles. May the trading gods be with us.
I only saw one trader with an unsubstantiated accusation: "looks like fraud". Hardly worth considering. Fraud. manipulation. etc. is often thrown around on message boards. Like I said before, Tuesday morning can't come fast enough for me. The ER should put an end to the misery.
To add to the confusion, Yahoo says there a lot more calls than puts out there on this one yet it keeps falling so I have to ask WHO is selling and WHY? Here we are waiting for Tuesday morning's ER and watching the stock get thoroughly trashed - it ain't easy.
Correction: the 3 stocks mentioned above are really listed outside China in Europe so excuse my mistake. As to the current trashing of the stock, it's difficult to understand how a stock can drop almost by half of its 52 week high only on the news that the buyout would not be happening. Something else is going on and the upcoming ER should once and for all end the mystery behind it. If the fundamentals are unchanged, the stock is way overdue for a substantial bounce.
which coincidentally (or is it?) is our Memorial Day and markets are closed. At the bottom of the release, 4 YY stocks were listed - the US ADR and 3 Chinese listed stocks which are restricted to them and 2 of the 3 are listed as ADR. They all seem to have experienced the same trashing over the last few months as our US listed stock so at least there's consistency. I was very surprised to find 3 Chinese listed YY stocks thinking we were the only ones able to purchase the shares. Some analyst recently wrote that Chinese have a tendency to bid up stocks 2 to 3 times higher in valuation than what is experienced here so those companies listed here as unhappy with their US valuations and wish they could relocate to mainland China. Now anyone in the US holding this stock going into earnings will be unable to react to it at the moment of release. A very precarious position to be in to say the least. My wild guess is that the ER will be good and the stock will rise. What are your thoughts, if any?
I posted the same thing an hour or two ago but it never appeared on the message board. I guess someone somewhere didn't like it and harpooned it. But anyway, you're dead on about the math of the trading - it's way out of whack and smells to high heaven.
According to Yahoo Key Statistics. they have 803K dollars to work with. Unless McAfee personally kicks in some cash as an investment, it looks like the train may never leave the station.
What is your source of this info? - I haven't picked it up anywhere. I know these ChiCom regulators can be pretty strange but this story goes well beyond strange. Will the monies be refunded to YY or is their govt. going to keep it? Does this cause a huge burden for YY to continue their operations in the current spaces? Not completing this deal means (I guess) YY will have more money at their disposal which is not necessarily a bad thing.
It's a win-win to me. If another buyout offer is tried, the stocks jumps up. If another buyout offer is not tried, the valuation should drift upwards. The really big question is why the precipitous drop without any kind of decent recovery? YY has no recent history of being heavily shorted so that's probably out. Some of the institutional types may be bailing out rather than stick around to see what happens. I went to their website and it's entirely in Chinese so that was of no help. I guess we're just playing the waiting game until something breaks.
I totally agree and could add many more comments about what's wrong with the mgmt but you already are aware of them. In spite of all the negatives surrounding this stock, now more than ever this is a screaming buy and should prove it in the foreseeable future if you can wade through all the misery that's being inflicted. The fundamentals are too strong to keep it down much longer. The only thing that can deny us a rightful uptick is if the operations have changed dramatically since the last ER - that's the really big unknown since there's absolutely no PR being provided and it's a guessing game.
Sentiment: Strong Buy
Kind of like cutting off the head after already riddling the body with bullets - overkill at its finest.