I'm ok with Elliott ignoring Wall Street. But his capital allocation is a disaster. Why do you need so much cash/working capital to realize the small revenue? They absolutely need to return cash to shareholders. I have a hard time applauding management when they do such a poor job with capital allocation. Of your 4 suggestions, I could not agree more with you on the 4th point.
Value and price can diverge for prolonged periods. Management has been fine in managing the business, but it is wrong for them to not try to make the stock price reflect the true value of the business. I am happy as a long term holder but it is unfair for current sellers.
3% is about 500,000 shares. As you know the trading volumes are very low. I own almost 70,000 shares and am looking to buy a lot more. If you are ever interested in selling large blocks of your shares (ie: 50,000 shares or greater), I will be happy to buy your shares. Please post on this board and I will give you my personal e-mail and then we can arrange a sale through our brokerage accounts. In fact if you are interested I can give you my e-mail now.
May calls: tender offer expires May 23rd, so the timing of monetizing your calls may be tricky. June may have been better.
June puts: I think you will get your $1.10 premium, but writing puts for a much higher strike price (ie: $90) would have made you real money.
We'll see soon enough how it will all turn out. Good luck!
"Good for WPRT=Good for FSYS"
How do you figure that?
Sell me your house for $1. What is good for me is good for you.
No deal is 100% and certainly SYT and ChemChina is far from certain. But given the low risks of financing (100% cash) and relatively minor antitrust issues, I think this is a very good bet. Specially that the spread is so large currently. Tender offer will expire by the end of May.
I hope they are not getting too cocky. They were doing well, but deciding to rest their case prematurely could backfire. Maybe they are in a rush to close the deal and are willing to take their chances with this judge. FTC case looks very weak for sure at this point. For them to think that 2 barely profitable companies could monopolize office equipment is ludicrous given the challenging retail landscape.
"Lawyer companies" are just routine BS law suits that are filed with practically every acquisition and merger. I think $1 is all shareholders will get. Larian's $1.10 offer was strange and appears to have not been that serious. He said he is not going away easily but it looks like he has disappeared.
I am pretty sure that as part of the original deal with Zhenfa, the deal was that Zhenfa or STR were not allowed to buy any more shares until 2017. This was meant to maintain the balance of power. I don't recall the exact details.
Anyone here planning to go to the annual meeting? I am looking into it. Need a visa and I think flying to Hong Kong and then taking the train is the easier than flying directly to Shenzhen due to the abundance of flights to Hong Kong.
I was surprised by the heavy volume as well. Don't know anything about the CNBC mention. I thought it was because people got to reading the recently release annual report. The company is laughably cheap because management loves hoarding cash. Lets start giving dividends!