Seiden has complete control of Wiscon - which may or may not mean that he has control of anything in China. We still do not know if Ren will block Seiden in Chinese courts.
Maybe he bought at 10 cents and wants to dump his shares now for a 400% gain.
Unfortunately we've already seen that play. All US investors get is what the insurance policy Loeb holds will pay. Which in past instances is just a few cents on the dollar.
MIGHT is the operative word. What you really mean is that Seiden MIGHT offer Ren a sweetheart deal so that he can collect all the legal fees owed him by shareholders. If that's the case, investors could only get pennies a share as they have in prior settlements.
So I still remain in the wait and see camp. It's over when its over and we will only know then if there is a substantial recovery or no. You are all bright promises and assurances as if you know the future; while in reality, although progress has been made, the end result is still rather murky.
So I get 1 out of 10 even though I never predicted which way Chinese courts would rule. All I said was that Chinese courts have ruled both ways and that we will have to wait and see. So what will you say when the court case is announced? Or do you really thing Ren is just going to roll over and let Seiden steam-roll him with out a fight?
Because DHF will drop in price as it is now. As rates go up, DHF becomes worth less. Will it go all the way to 12%? Who knows - one can just hope.
Ren would not be doing that as a non-employee and public citizen. Are you crazy?
Instead he would be asserting his rights as a Chinese CEO against outsiders. You can't just lump together the Chinese and HK corporations - they are separate entities. The Chinese companies Ren runs are not "their" company - instead there is only a contractural agreement between the Chinese and HK companies.
Seiden may have control of the HK Corporations but that still means nothing unless Chinese courts rule against the separate Chinese companies that Ren is the CEO of and for the HK Corporations who have a contract. It still looks like this is all going to take a long long time.
If there are any naked shorts left, why would they be in a panic? The stock is only trading at 40 cents and there are still well in the money since they shorted @ $8.
You forgot the most import step of all. As Chinese courts have ruled both FOR and AGAINST foreign shareholders in the past - the question now is will they rule against Ren or not?
Ultimately what everyone is waiting for is for Chinese courts to rule in favor of Seiden against Ren. And since there isn't even a court date set for that - the fat lady isn's anywhere close to the door or about to sing.
More military spending is good for the economy. Of course its not good for the national deficit - but no one seems to really care about that. Some future generation will come up with a miracle save.
Actually I hope the Fed DOES raise rates. I'm tired of receiving so little in dividends. I'd much more enjoy getting 12% instead of 8 or 9%. Plus if the Fed can raise rates without crashing the system - that's a sign that we aren't stuck in the Japan deflation funk forever.
See how wrong you are?
The 10Y spiked and all dividend players have taken a beating.
Maybe Nobody considers the 10Y - but we successful traders surely do!
FFC and all dividend players are way over bought. None of them trade at reasonable rates. However, if we are entering a deflationary world and are all doomed to the Japanese curse, we are stuck with low payout ratios. The lesson of the last few years has been to buy the dividend payers on sell-offs after VIX spikes above 17. Let's see if that remains true going forward.
Tony, its not their investment advisors. Due to artificially low rates forced by the Fed, there just aren't any high paying bonds left to buy. Look at JNK paying less than 6% for example. Once upon a time Junk Bonds paid 10% or more. The Fed has totally distorted markets.
I would say never again. Go to CEFConnect and look at the long term chart. The path over time is down as dividends are cut over time; plus now the Fed is indicating that they are going to raise rates. Of course maybe the Fed is lying.
It actually looks more like a buy here than it has in a while. However, rates are rising and junk bonds are selling off as illustrated by JNK. Maybe investors really are preparing for the Fed to raise rates next year after all. Still, I'd buy this on any rebound in price.