NEW YORK, NY / ACCESSWIRE / October 18, 2018 / Shares of Chinese stocks Yulong Eco-Materials and China Advanced Construction Materials Group were both popping on Wednesday. While China Advanced Construction Materials Group lacked news to explain the gains, Yulong’s closing of its acquisition of the Millennium Sapphire sent shares roaring over 600%.
RDI Initiates Coverage on:
Yulong Eco-Materials Limited
China Advanced Construction Materials Group, Inc.
Yulong Eco-Materials Limited shares closed up a staggering 571.05% on Wednesday with about 40% more in gains in extended hours. The stock hit a new high of $13.20 and traded around 34 million shares. The big jump came after the company announced that it has completed the acquisition of the Millennium Sapphire “MS”. It was on August 22, 2018 that the company had signed a Sale and Purchase Agreement to acquire the Millennium Sapphire for $50 million via the issuance of 25 million restricted shares valued at $2.00 per share. CEO Hoi Ming Chan commented, “We are extremely pleased to have completed the purchase of this undervalued world class asset for $50 million. The most recent appraisal for the MS (September, 2018) was US$60 to $90 million. Worldwide news headlines of the then unnamed rough sapphire purported the value between $90 to $500 million in 1996 when it was discovered.” The Millennium Sapphire is one of the most documented gemstones of modern times. Yulong Eco-Material Limited is in process of selling off its China business and plans to relocate its headquarters to New York.
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China Advanced Construction Materials Group, Inc. shares closed up 62.28% yesterday on about 750,000 shares traded. The stock also saw additional gains of 58.11% in after-hours trading. Along with the unusual gains, volume traded was significant for the company yesterday despite any news from the company. It was a big bounce for the stock which earlier this week was trading at a little over $2.00. Founded in 2002, the company, through its subsidiaries, produces and sells construction materials for large scale infrastructure, commercial, and residential developments primarily in the People's Republic of China. Its products include ready-mixed concrete blends, controlled low-strength materials, high-strength concrete products with customized fibers, and soil cement and foundation concrete products; and compound admixture concrete, lightweight aggregate concrete, thermostat concrete, and C100 high performance concrete products. The company sells its concrete products primarily to local construction companies. Its target customers include general contractors, developers, design engineers, architects, and homebuilders. As of May this year, the company operates as a subsidiary of Hou Sing International Business Limited. Earlier this month, the Company filed a caution with SEC. A review by the company's accounting firm revealed “errors primarily as a result of omission of certain contingencies,” according to the SEC filing. The company delayed its shareholder meeting and warned that its three latest financial reports "should no longer be relied upon."
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Our Actionable Research on Yulong Eco-Materials Limited (NASDAQ: YECO) and China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) can be downloaded free of charge at Research Driven Investing.
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