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02-09-2013, 05:40 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
Quite surprise as most investors including myself thought this stock was a GONER.
falling 50% in one day to 53cents.
This is the first time I see this happened:
Quote:
UOB Kay Hian Private Limited ("UOBKH") wishes to announce, for and on behalf of PT
Indofood Sukses Makmur Tbk (the "Offeror"), that the Offeror has today agreed to acquire
pursuant to married deals an aggregate of 25,590,000 issued and paid-up ordinary shares
(the "Shares") in the capital of China Minzhong Food Corporation Limited (the "Company"),
representing approximately 3.90% of the total number of issued Shares1
(the "Acquisition"),
at the price of S$1.12 per Share.
Following the Acquisition, the Offeror owns, controls or has agreed to acquire an aggregate of
219,525,382 Shares, representing approximately 33.49% of the total issued Shares.
As a result of the Acquisition and in accordance with Rule 14.1 of the Singapore Code on
Take-overs and Mergers (the "Code"), the Offeror will make a mandatory conditional cash
offer (the "Offer") for all the remaining Shares, other than those Shares held by the Company
as treasury shares and those Shares owned, controlled or agreed to be acquired, directly or
indirectly, by the Offeror as at the date of the Offer (the "Offer Shares").
The take over price is $1.12, more than double the last close slaughtering all the
shortsellers who pushed down the stock.
This is the first time I see a Chinese company conduct such an aggressive counter attack on short-sellers. It is likely the takeover deal has been in the works for months and the short-seller simply walked into a trap.
If you go through CMZ books indeed the high and increasing receivables and low cash flows are definitely red flags. But all this does not matter, the major shareholders are going to make a fortune by doing a short-squeeze on shortsellers.
1. Major share holders including Indofood that is carrying out the takeover control > 50% of the stock.
2. Depending on how much stock hedgefunds borrowed to short - estimated 10-30% they need to cover when the stock opens on 18 Sept.
3. When it opens there will be a mad rush of buying to push the stock up.
4. The shortsellers have cover a significant amount of stock.
5. Since 50% is locked up by major share holders, the stock is going to spike up....likely to be above $1.12...in the short-slaughter party.
6. Glaucous the main short seller hedge fund its going to wounded.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?161752-China-MinZhong-springs-a-SHOCK-SURPRISE-on-Short-sellers&goto=newpost).
Quite surprise as most investors including myself thought this stock was a GONER.
falling 50% in one day to 53cents.
This is the first time I see this happened:
Quote:
UOB Kay Hian Private Limited ("UOBKH") wishes to announce, for and on behalf of PT
Indofood Sukses Makmur Tbk (the "Offeror"), that the Offeror has today agreed to acquire
pursuant to married deals an aggregate of 25,590,000 issued and paid-up ordinary shares
(the "Shares") in the capital of China Minzhong Food Corporation Limited (the "Company"),
representing approximately 3.90% of the total number of issued Shares1
(the "Acquisition"),
at the price of S$1.12 per Share.
Following the Acquisition, the Offeror owns, controls or has agreed to acquire an aggregate of
219,525,382 Shares, representing approximately 33.49% of the total issued Shares.
As a result of the Acquisition and in accordance with Rule 14.1 of the Singapore Code on
Take-overs and Mergers (the "Code"), the Offeror will make a mandatory conditional cash
offer (the "Offer") for all the remaining Shares, other than those Shares held by the Company
as treasury shares and those Shares owned, controlled or agreed to be acquired, directly or
indirectly, by the Offeror as at the date of the Offer (the "Offer Shares").
The take over price is $1.12, more than double the last close slaughtering all the
shortsellers who pushed down the stock.
This is the first time I see a Chinese company conduct such an aggressive counter attack on short-sellers. It is likely the takeover deal has been in the works for months and the short-seller simply walked into a trap.
If you go through CMZ books indeed the high and increasing receivables and low cash flows are definitely red flags. But all this does not matter, the major shareholders are going to make a fortune by doing a short-squeeze on shortsellers.
1. Major share holders including Indofood that is carrying out the takeover control > 50% of the stock.
2. Depending on how much stock hedgefunds borrowed to short - estimated 10-30% they need to cover when the stock opens on 18 Sept.
3. When it opens there will be a mad rush of buying to push the stock up.
4. The shortsellers have cover a significant amount of stock.
5. Since 50% is locked up by major share holders, the stock is going to spike up....likely to be above $1.12...in the short-slaughter party.
6. Glaucous the main short seller hedge fund its going to wounded.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?161752-China-MinZhong-springs-a-SHOCK-SURPRISE-on-Short-sellers&goto=newpost).