Gold Wind (#1 wind energy company in China) market cap is approaching Y50 bil in Shanghai exchange. GW's market share in China is about 3 times of MY's, and profit margin is higher (20s%). Combining these two factors together, MY's fair market value should be around 1/5 of GW's, that's about Y10 bil = $1.5 bil, about 5 times of current MY market cap.
MY should consider listed in Shanghai if price stays depressed in NYSE. I believed CEO Zhang mentioned the possibility in a conference call before.
Shadowdoc99: I feel sorry for you. really don't know how can you get out of this stock. i know you have 30mil+ shares. it would take 2+ year to sell them out, assuming you are the only seller and you sell every open day. This stock will be worth of nada, zero, 000 once their cash gone which i expect in less than 2 years, before you can sell anything out.
hi kid - if you try to value a Chinese company, here is a good example - another Shah Capital's big baby - XNY. see how cheap the company is, compared to its cash. pls don't sell your GF to buy into this one.
hi, kid - you apparently never learn anything from your disaster "investment" on UTSI in last 10 years or so. an amazing stubborn and extremely subjective young fellow!
China just announced pricing for offshore wind power. It's a great news to the industry. It is anticipated that 400-500B yuan market will be open up in next couple year.
MY is a big player in offshore windpower in China
Please note that this is the official China Mobile Suzhou Branch Page: http://tech.fortune.cnn.com/2013/12/02/apple-china-mobile-suzho
This is from DANG official blog: http://blog.dangdang.com/?p=18960
in short, DANG advises customers for slight delaying in shipping due to massive orders received
so what products can UTSI sell to Softbank, Chinese bricks or soy sauce? Its buildings, IPTV business, PHS, etc, anything worth of a dime were long gone already.
Some Investors here apparently know few about Shah's track record. Shah had played hard balls with a number of Chinese companies, all ended up loss of all or nearly all his investment in the target company. Search his history with Qiao Xing Mobile and Qiao Xing Universal Resource, Chinese solar firms, and most recently, long and disastrous twist with UTstarcom. My guess is that his investors ask for money back after seeing one disaster followed by another, his only trick left is with China Yuchai. He has to do whatever he can to push up the price. He has no choice.
His latest ""take over UTstarcom" will be proved to be another embarrassment in July or August.
My taking is that Shah has to sell a part or all CYD holdings for two reasons 1) satisfying clients requests for pulling cash out of the fund since Shah has 2 disastrous years in a row already, look like the loss of 2013 is even bigger; 2) preparing cash for acquiring the announced UTSI acquisition.
Look like the selling is just started.
I don't how Shah can get any money from bank for the deal. The fund's track record is grossly disastrous. The only way is to sell its other stock holdings. Please look his current holdings to see how the fund can sell.
CYD will be in $11 soon without Shah's sale. The construction bubble of China is bigger than anyone can image.
well, if you take Chinese number as granted, good luck with you.
go search the web to see how many listed Chinese companies did the trick, with the help of state banks. Actually, Shah has 2 busted Chinese companies, with "$400-500 mil" cash on their hands by the time of bankruptcy. These two firms are still listed on Shah's holdings.
If Shah can't sell its shares during the process of DD, this fund is done. Nobody else will offer a better price than $3.2/share, Shah will then need to find the non-exist cash for the deal.
I agree with you.
On the other hand, if this deal ever goes through, Shah will be totally broken in 2 years. This fund has no clue what it has been doing all these years!
The timing is suspicious. Shah just had a disastrous quarter, the 13F filing is right on the corner. I suspect that Shah worry its clients will pull money out of fund, he has to address the quarter report somehow to make it look less disastrous. The only way is to pump up one of its major holdings, UTSI is the only one candidate left.
Do any of you believe that any financial institute will provide debt for the deal, in view of Shah's track record?