Because of the industry-competition- the company should trade at discount to normal value- but if you discount fair value by 50% you still get 3-4$- 1.60$ is a joke. The big negative is the company should return 5-10mill per year to shareholders in a form of buyback/divy.
really helped their earning this period- more importantly it will help their earning on the tune of almost 9 million per year- huge news.
Makes no sense. the great news is they finished off paying their corporate bond in FEB which should dramatically help their balance sheet plus help income since I believe they were paying 9% yield. nobody cares until they do.
Geoinvesting reported their was article in China that a private equity firm offered them 8.50$-
if this traded in China like their peers its worth 12-15$- thats the arb game going on right now.
income from operations was up 25% for the quarter- the flatness had to do with higher interest expense this quarter probably based on warrant formula on the mezz debt. the company doing dramatically better but the key is they need refinance with their debt to get a lower rate. if the keep doing well year over year you are hopefully they should be able to do it which could add dramatically to earning in the future because of lower interest cost.
heeeeeee- stock is 35cents-what a joke.
you have top wonder why they would do this deal-
They need a definative agreement first then it will trade better because the ARBS will come in for the spread. If they get agreement stock will trade 62-64$ range- If you get it from other one's it should happen 4-6 months after original deal so your talking I think oct-Nov timeframe. After that its another 2-3 months to close it.