A strong buy recommendation by Zack research. The projected earning is $2.17/share. That is less than 10 P/E ratio.
CEO acquired 20,000 shares at $15.85 on Aug 15 (Non-open market). This is the information I got from Yahoo finance. I am not familiar with these terms like non-open market and acquired instead of purchased. I was wondering if anyone can explain me the difference between the purchase and acquired and also non-open market.
Even after such good earning announcement, the stock is still fighting with the short sellers for upside movement. I listened to the call this morning and they don't have any plan for stock buy back but the CEO did not completely rule it out. They are repurposing an existing chemical plant to make plastic in Dubai. That will be running by the end of this year. Plastic is made from petroleum resources. Dubai has cheap and plenty of petroleum resources. By 2017, the company revenue will grow by 80%. Question was asked about Seeking Alpha allegations. I did not follow that part very well. It was not clear whether they are taking any action. No one asked about all the class action law suites. If the company BOD's are wise and they are clean, they should immediately consider purchasing the shares. They will make more money by purchasing their shares than keeping the cash in the bank. They can use that for their CAPEX spending. I have purchased the shares at $8.15. I am still loosing money but I hope things will turn around and get back to $8+ again.
I think the earning will be announced tomorrow at the end of trading session. However the earning call will be on Tuesday. No doubt the earning will be good - the stock will move higher or not depend on what the company CEO says about the allegations and what is their course of action. I am sure some analyst will ask that question during the call. Let us see what the company's response will be - until then I will not touch this stock.
No doubt earnings will be good. The stock will still remain depress unless the company takes some action - that may be declaring dividend or stock buy back. I will suggest the company to hire a good PR firm in US and improve their image. Let the CEO explain the company position in CNBC or any other business news. That will help to gain back the investors confidence.
RCAP published some initial performance result on July 31 for the June quarter. It seems like they will meet the analyst earning expectation of $0.43/share. The stock dividend yield is more than 3.2%. I think this is a good buy at this price.
Filing a law suite without evidence is a felony. Why don't you think this way. The lawyers at SEC make peanuts compared to private firms. Being a good and ambitious lawyer, he or she joined a private firm.
The argument is simple. It was $8 about three weeks ago and now it is $5. Can't you see the down ward trend. If you don't sell, it will be $4, $3 and so on.
You guys are dreamers. You think all these class action law suites by the law firms are without evidence. Even a former SEC lawyer is looking for any wrong doing by CXDC management and BOD. I think this class action law suites will go on for another year and the stock will remain depress until a settlement is made. Several years ago, I invested in a Chinese paper company called Orient paper Company (ONP) and their stock went down from $12 to almost $4 in a matter of one week based on an article by Muddy Water. The company never recovered from the slump. The stock is trading now at $2.20/share.
Since the stock price has dropped, it is an opportunity for the insiders to buy the stock. I am checking everyday the insider purchases in Yahoo finance and I don't see any insider buying CXDC. Several law firms have lined up for filing class action law suites without any solid evidence. IF SA (Baker street) is there evidence, they don't have a case. The author of SA article benefited by shorting the stock. I am sure someone from SA will pump CXDC stock by writing an article. I don't believe a word what SA publishes whether it is a pump or dump. They have lost their credibility.
It is certainly unethical but not illegal. SA credibility will be destroyed if all the things the author has written turn out to be a money maker for the author. Several Law firms have already announced class action suites based on this article. With out proper evidence, how they have lined up for legal action.
If you read the SA article, the author wisely created a suspicion in people's mind. He compared two Chinese companies in the same space and one making less money than CXDC. That is a fact. The current CFO was the former CFO of ABAT which was investigated for accounting fraud. That is also a fact. He also mentioned that CXDC might have a better margin than their competitor. He has wisely covered all grounds legally and wisely.
It does not matter whether SA made a huge mistake or not - People are dumping this stock because they can always buy back at a lower price. I did the same thing.
Obviously the CFO does not have a good track record. It seems like he lives in NY or he has a NY number for investors to contact him. It is possible because I carry my Vonage when I travel overseas and people can contact me in my US number. Seeking Alpha article is definitely disturbing. Five to six years ago a Chinese company (ONP) was attacked by Muddy water for the same allegations. They fought back but their stock value went down by 80%. ONP is still trading.