China Animal

From what i hear, China Animal has delisting potential.

Why does fidelity keep paring down their stakes?

Hi Yek, You are right. I used last yr's PE. Since price is trading much below it's peers else where, it is quite certain that it will be delisted since CEO has high stake in it. I guess the issue mgt faces now is the offer price. To be fair to investors here, it should at least offer IPO price at 40 cts.

Price is artificially pressed down & kept at 25-26 cents range, so the offer price need not too expensive for the management/SS???? Is this the game?

I think the answer lies somewhere in the convertible bonds that BlackRock had subscribed to. A very close reading of the article would be useful in understanding Fidelity's intention. I have only four lots of China Animal Healthcare and frankly despite all the positive publicity, the stock's price has barely moved, back to where we were a year ago.

Coverup, can you explain your theory?
So far, I know 28.8 cents is the minimum subscription price for BlackRock, so it's no point for them or anyone to suppress the price. BlackRock would rather the stock price be much higher so it can subscribe at 28.8 and then sell for a profit.

It is relevant to note that BlackRock also had bought placement shares when it issued US$40 m of convertible bonds to CAH. BlackRock got no luck in that it paid 35 cent a share for the new CAH shares. Total S$7 m. BlackRock can easily get all these shares at 23-26 cents in the last six months. Too bad....