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.
To longs: not to worry. To Tunaman: cool it, no great event is happening here.
A lot of folks are befuddled by this earnings date listed by Yahoo. The last ER appears to be 3-15 so May seems too early. Companies usually create a headline announcement prior to releasing earnings and that hasn't happened yet.
when I noticed that the founder (Koch) owned just a few hundred shares and the CEO was a question mark because I couldn't find any info on him. When the founder and the CEO don't have any skin in the game, how much confidence does that exude in the shareholders? I quickly decided to pass on this one.
Food for thought. It may suggest that the insepid selling is approaching its end and a more normal trading regimen is around the corner. Just my opinion without any hardcore evidence to back it up.
A reverse merger implies that a Chinese U.S. listed firm is intending to eventually bring their company back to a Chinese listed firm which can be accomplished by either a private or public merger or acquisition. The regulators feared several bad outcomes from these kind of deals so they cleverly let it out publicly that they were looking at it seriously. They anticipated that the stocks would correct downward and probably kill the plans of these firms to follow through. It was a good guess because that's exactly what happened. It's called "saber rattling". Once the news has been completely digested by traders and the risk is well established, all these firms should once again be valuated based only on their fundamentals, not on any projected windfall as a result of such transactions. If you feel the intrinsic worth of YY or any other Chinese U.S. listed stock is truly undervalued, hold on through the temporary pain and the stock(s) should eventually recover. If not, bail out, take your losses and move on.
There's a story on Scottrade about Chinese regulators "looking at" companies selling on foreign exchanges buying up the shares with an intention of listing their companies back in China to jack up their valuations (or something like that - kinda confusing). That story came out May 6th which coincides with the rapid selloff so take it for what it's worth. It evidentally had nothing to do with the company's performance, only with what the Chinese regulators MIGHT do.
They damn near brought it back to even but a last minute push got it back to 10.06 which I guess we should all be thankful for.