I am sure you are right, springpig. The bloody CAH will buy from minorities at 30 cents and then place out the shares at a higher price in HK. Everything has its risk and in this case, the company faces the risk of not being able to place out until many months later when the euro crisis simmers down.
SWN: It's clear that anyone buying at 28 cents is incentivised to sell at 30 cents. The 2 cent difference is a major return on investment because the holding period is most prob only a few months.
What is not clear is why there are jokers out there who have sold short.
[hr]
[SWN 31-05-2012]:
I also dont know the reason, that is why I raised in this forum hoping others who know can comment.
Also noticed one of the funds has been unloading their shares in the company. wonder who are the buyers who picked them up, is it the Chairman?
The action of China Animal Healthcare management leaves one pondering what is the management trying to do? I have seldom seen a corporate exercise being updated to the public even before it has been confirmed. The Company probably has not confirmed its bridging loan for the offer of 30 cents. Why did it then make the bold announcement ? Makes one wonder.
1 sentence only is news: "The Company wishes to update Shareholders that the arranging of third-party financing for the Possible Delisting and other associated workstreams are ongoing as at the date of this announcement."
CAH trended lower in past week. 25cents close today. My friend shared with me something interesting -- his CAH shares were borrowed via CDP and have been returned (image below). How to Interpret this? Borrower shorted the stock? Expected the downtrend. How come? Is this related to the possibility of a non-delisting?
NextInsight
a hub for serious investors
