Institutional investors are not going to let this go for $5.50.....in fact what Chen is now worried about is that now the stock has broken the $5 mark a lot of institutions that have stayed away are eyeing the stock. Most funds have a caveat about buying stocks worth less than $5 per share. We all know by looking at the balance sheet and earnings that the company is worth north of $7 per share. I believe this move by Chen was to discourage other institutions from climbing on board. That would make it much harder for him to be autonomous with more deep pocketed investors getting involved and would certainly complicate the idea of going private. I say...stay the course and if he is serious about taking it private he will be forced to raise the bid to at least $6 a share to placate everyone. He's no fool....he is not going to risk getting into a street fight with the SEC and large investors over $15 million. With autonomous vehicles looming on the horizon, and CAAS being one of the main players for steering technologies they are in a very good position to capitalize on that broader market. One of the 'key' elements to self-driving vehicles is the steering servos and mechanics. CAAS has already succeeded with the 'mechanical aspects' of steering....and they are currently testing various servos and software compatibility. They have an opportunity to be a 'major' player in self-driving components. There are only a few companies in the world that manufacture the electric steering assembly, and their stock has already started to move higher. CAAS is the only one lagging. That is either by design....or a serious oversight by the investment community. Stay tuned.
Chen is nobody's fool....he sees the future of autonomous cars and wants the whole pie for himself. CAAS is one of very few companies that specializes steering assembly manufacturing. They already have the mechanical aspects nailed down...and are now working on integrating the operating servos and software to control the steering. This is an integral part of the self-driving cars and will require the steering assembly to operate with mechanical servos.
yes, book value alone is around 9.50 with solid balance sheet items to support this number. growth in earnings and operating income has been solid enough to demand a premium given end market growth potential. this is a terrible offer and is a raid
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Chairman Chen is required to represent all shareholders best interest which is getting the fairest price for all shareholders. The price being currently offered is unfair to all shareholders so this lowball price if it goes through will probably be tied up in the U.S New York court system, class action law suit. The independent reviewers are they?
but the burden here is high, given they would need approval by the "independent" board members AND majority approval of non-affiliated shareholders. I can't see non-affiliated holders liking this deal
Buyout at 5.45? No deal!
Book value is $9.91. Chen wants to buy it for $5.45. I think, from previous experience, that Chinese companies list in USA to stimulate capital and to gain legitimacy and then go private. More and more I question if their real business is ever private, especially after hitting a certain value. Chen is attempting to rip off any other shareholders and does not want to pay value of company. SEC cannot do anything. Chen would just reorganize and hide new company in China.
THESE CHINESE SCAMMERS HAVE ALREADY RIGGED IT SO THEY WILL STEAL OUR MONEY. EVERY CHINESE COMPANY. I HOPE THEY ALL DIE. NEVER INVEST IN CHINA AGAIN.
I wonder how soon the Fake Board will give the nod to the $5.45 offer......
Several institutions have 400,000 to 500,000 shares. While the percentage is minor, they may still have enough interest to stretch out this process, in an attempt to improve the buyout offer price.
The Chairman and insiders own 56%.
If another steering company wanted to buy CAAS, I'm sure the selling price would be over $10. a share.
At this point it pays to wait to see what happens.
Yeah, this price is way too low given the margins, outlook and balance sheet. They have been using cash to buy back shares and boost his stake to boot. the stock trades at .52 book value and has 61mm of cash on hand, or 1.95 per share of cash alone. this could have some SEC pain if this goes through
On May 4th Greenridge Global upgraded CAAS from hold to buy with a $7.50 target price.
[2016-MAY] China Automotive Systems NASDAQ : CAAS Correlation Histogram
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.4 In other words, the correlation coefficient of the other stock
Q4 Sales and earnings were actually very good. Backing out the recall charge, Q4 earnings would have been above 30 cents. Looking into 2017, earnings should move closer to $ .90- $1.05 with the sales guidance provided. For now, the 18 cents Q4 earnings fell 1 cent short of estimate, factoring in the recall charge. Zacks will not pick up on the one time charge, and will leave the rating as a hold for now. However, Q1 earnings release is only 60 days away, which should be an easy beat over last year's number. Mid 20 cents+.
"Electric Power Steering (EPS) sales grew nearly 45%". This will continue to happen because it supports driverless technology. This company definitely has excellent prospects for increased revenue growth and EPS (earnings per share) continuing into the future.
you could only increase you basket 2 or 3 times for the five years ... But with NTWK it is better $ 5 will become $ 50 and even $ 100, 500 for the next decade ! Watch carefully ; Sales , BNA , Return , capitalization , buyback ! ... Fundamentals ! The Microsoft of Asia is coming !
Some notable open interest call options for May and August expiration, mostly in the money, covering 150,000+ shares. Q4 earnings to be released this week.