the most transparent administration on earth....
maybe not....
consider that repeat: if any legitimate company has free cash flow of 100MM and a market capitalization of 70MM you get an institutional guy who walks up and buys the company for FREE given that they'd own all the assets in 12 months using the company's own internal cash flow to do so.
the reason this isn't happening isn't because it's CHINESE - insiders do this all the time and go private because they have a much better deal owning 100% for themselves.
given all of the arm waving, you must ask the question:
1. why does management not RECAP the company and go private? greed is good.
2. why has nobody institutionally stepped up and made an offer to buy the whole company?
3. a private group could easily sponsor a bank to do the same thing
4. so many ASSETS supposedly so look, I just buy it all, sell a fish tank and I am debt free?
reality is that with byzantine accounting and PHANTASY asset ownership structure you have a WORLD of people who look at this thing and just say.... *they're at it again....
where's the TENDER OFFER from some aggressive LBO shop? billions in china to execute these kinds of deals, and yet ZERO interest....
now you maybe guess why it keeps going toward ZERO every day..... because that's what paper is eventually worth....
we are flawed as human beings to stretch and work beyond the obvious in search of something new, but here there's nothing new... just the same story getting wilder and wilder with the same busted non-ownership structure that keeps people interested but that same structure keeps the company basically worthless relative to their continuous puffery.
have a great weekend!
