Harbin Electric (HRBN)

[$King]

Sweetness!

[AlanC]

HRBN @ $21.47!

[$King]

HRBN @ 19.92

[Rawnoc]

HRBN down a chunk....is it purely from the seeking alpha blog?

[Rawnoc]

Unmasking The Harbin Electric Buyout Drama

http://seekingalpha.com/article/298406-unmasking-the-harbin-electric-buyout-drama?source=yahoo

[Rawnoc]

Harbin Electric Cut To Neutral From Buy By Roth Capital

Last Update: 10/7/2011 12:51:17 AM

(END) Dow Jones Newswires

October 07, 2011 00:51 ET (04:51 GMT)

[AlanC]

$21.87

[$King]

UP TREND

[$King]

+ 7.55%

[$King]

HOD 21.37

[$King]

2.7 MIL vol

[$King]

HOD 21.37

[$King]

HRBN @ 20.65

[azs]

HRBN put pricing is just plain odd. Should I be buying the MAR 24s instead of the MAR 20s based on a 1.20 ask differential?

[azs]

Picked up a few more March $20 puts.

[Rawnoc]

"A failure to vote will have the
same effect as a vote AGAINST the proposal to adopt the merger agreement."

hmmmmmm

[azs]

It is all over the place. Proxy materials move it like this?

[Rawnoc]

HRBN not trading today like a $24 buyout is coming. Glad I kept adding puts. Thinking about a few more.

[Rawnoc]

Yup....or I'd go out further. 250% potential gain vs. 100% potential loss, and I give at least a 50% confidence rating on the gain vs. the loss so my expected valued is very positive.

[azs]

For now March is as far out as we can go. Let us hope it will be a CCME.

[Rawnoc]

I'm only accumulating March puts because they say they will close the acquisition in Q4 and that leaves room for a "delay" -- I'm a bit concerned that March may not be far out enough either, but this is a small gamble so March is good enough for me.

The trading action FWIW says this buyout is either for real or they'll take the scam to a new level and execute the buyout anyway. That's my emotional take on the trading. It is NOT trading at all like a scam but like the buyout has a small chance of falling through for other reasons. But trading is frequently dead wrong as we certainly saw similar with CCME before it imploded......I think HRBN will be another CCME but who knows. High risk put play IMO but not as risky as being long lol

[azs]

I have some existing Dec PUTS from a while back. All of my new ones are March.

IHUB evolves. Maybe we are bullish on shorting.

[azs]

I have some existing Dec PUTS from a while back. All of my new ones are March.

IHUB evolves. Maybe we are bullish on shorting.

[Providentia]

With all of my available capital wrapped up in March puts, I came to iHub to gawk at all of the idiots touting this stock. I am sorely disappointed...what happened to the permabull culture at iHub?!?!

The March puts represent the best play on this fraud. I wouldn't touch the Dec puts for fear of trading halt...

[azs]

Trying to add some Marh 19 Puts this AM.

[azs]

I think Rawnoc will do just fine.

[Rawnoc]

My puts expire in March 2012. God have mercy on your calendar.

Rawnoc Friday, September 09, 2011 1:22:34 PM
Re: None Post # of 118

HRBN -- back in with March puts. Will slowly accumulate until buyout or bust, whichever happens first. I like the risk-reward ratio. Pretty much a no brainer it's so favorable. I give maybe a 10% chance that the deal goes through and a 90% chance HRBN tanks IMO.

Spent a few hours last night examine this one.

[Rawnoc]

I am adding to my put collection daily on HRBN until either it gets bought out (and I lose 100%) or it implodes, whichever comes first.

[azs]

I did this AM. I thought it strange that there was only a $1.20 difference between the $17s and the $20s.

[Rawnoc]

HRBN -- back in with March puts. Will slowly accumulate until buyout or bust, whichever happens first. I like the risk-reward ratio. Pretty much a no brainer it's so favorable. I give maybe a 10% chance that the deal goes through and a 90% chance HRBN tanks IMO.

Spent a few hours last night examine this one.

[azs]

.

[DonkeyKong33]

ORCHARDS BIG 10.5% STAKE IN HRBN $$$$$$$$$$$$$$$$$$$$$$$$$$$$$
1. From Orchard Capital Filing on August 31, 2011 (http://www.sec.gov/Archives/edgar/data/1...

“As of August 31, 2011, each of the Reporting Persons may be deemed the beneficial owner of 3,296,441 Shares. This amount consists of: (1) 809,018 Shares and 588,000 Shares obtainable upon exercise of options held for the account of the Avalon Fund; (2) 561,453 Shares and 312,300 Shares obtainable upon exercise of options held for the account of the Centar Fund; (3) 606,170 Shares and 343,800 Shares obtainable upon exercise of options held for the account of the Gemini Fund; and (4) 75,700 Shares obtainable upon exercise of options held for the account of the Makira Fund.”

In summary, total 1,976,641 (common) shares and 1,319,800 “Shares obtainable upon exercise of options”

2. From Stark Offshore Management filing on August 22, 2011 (http://www.sec.gov/Archives/edgar/data/1...

Item 4. Ownership.

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned: 1,621,600
(b) Percent of class: 5.2
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: 1,621,600
(ii) Shared power to vote or to direct the vote: 0
(iii) Sole power to dispose or to direct the disposition of: 1,621,600
(iv) Shared power to dispose or to direct the disposition of: 0

Notice no mentioning of option and warrant here.

3. Company’s total number of warrants outstanding:
According to the 2010 10-K: (http://www.sec.gov/Archives/edgar/data/1...

Page 29:
“ As of December 31, 2010, a total of 183,348 Second Tranche 2012 Warrants remained outstanding.”

Page F-4: as of December 31, 2010
“(Basic) Weighted average number of shares 31,102,634”
“(Diluted) Weighted average number of shares 31,282,065”

Page: F-33:
“Outstanding as of December 31, 2010: 183,348”


I cannot rule out that Orchard's 10.5% position include Stark's 5.2%, but then wouldn't Stark need to file with SEC stating that they have sold?

Orchard Capital is a spun-off of Stark, so they are related. It could be that Orchard and Stark shared ideas here and each established a decent position.

But Orchard's position cannot possibly be Warrant related, as the Company has merely 183 thousands of shares of Warrants Outstanding, how can Orchard Capital's 10.5% Position be Warrants?

[DonkeyKong33]

8-K filed to SEC, this keeps looking worse & worse for the shorts

[DonkeyKong33]

HRBN soars on stockholder meeting for LBO vote

http://finance.yahoo.com/news/Harbin-Electric-Inc-Sets-prnews-2437067686.html?x=0&.v=1

BBQ shorts ribs with hint of Citron anyone?

[DonkeyKong33]

LOL Based on Citron's allegations based by Andrew Left who has been convicted securities fraud, you seem to have just as much credibility, ha
Date has been chosen for merger vote, keep crossing your fingers

For someone who has no short position you sure seem to be trying hard to make your points with no DD except your juvenile intuition
You don't even know what a threshold security list is lol , and HRBN has been on the list for 86 days, Looking very bad for the shorts

[MNYC]

Why would you be invested in this POS stock when you know how much influence Citron/ Muddy Waters have? HRBN might just gap down one day to 5.00-2.00 and all/ most of your money lost. What if the SEC suspends/ halts it? Check out how many big boards lately gapped down and crashed hard or were suspended by the SEC, more than penny stocks recently.

BOOM, CRASH, ADIOS

[DonkeyKong33]

What Citron forgot to mention

Harbin is an unusual situation. Typically when companies get accused of fraud or misrepresentation in financials, attorneys typically advice boards and managements to stay shut and limit press releases and comments to the public.
In this case, TianFu is protecting his reputation which is very very important in Asia and specifically in dealing with Chinese govt and contracts for their procured work.
Further, the amount of diligence executed by the parties on both sides of the LBO (in the merger agreement) was quite exhausting. Teams of 30 or more were probably responsible for all documentation and fact checking. I wonder what the due diligence bill amounts to?

[DonkeyKong33]

Good for you, you wont become a homeless

[MNYC]

Not losing money here as I don't trade it but especially because there are no Borrows of this POS, yet

[MNYC]

lol sooner or later HRBN will crumble. I wouldn't be surprised if it suddenly gaps down hard and crashes to 2.00 or lower just like so many other big board stocks lately with shady stuff going on.

[DonkeyKong33]

See you at the poor house Citron bums,
you just got @#$%ed in the A

present for the amateur shorts :)

http://www.sec.gov/Archives/edgar/data/1266719/000114420411040225/v228352_sc13e3.htm

special committee presentation by Morgan Stanley regarding Harbin. If these numbers are right, CEO/Abax are stealing this company!

[DonkeyKong33]

SEC validation next week is all the investment community needs to light your shorts on fire next week, see you at the bum house

[realfast95]

HRBN has not filed their proxy with the firm date of the vote.
It won't be August, that's for sure.


"The merger is currently expected to close in the fourth quarter of this year, and is subject to customary closing conditions as well as approval and adoption of the Merger Agreement by the Company's shareholders (including the affirmative approval of the holders of a majority in combined voting power of the outstanding Shares not owned by the Purchasing Group). Accordingly, no assurance can be given that the merger will be completed."

[DonkeyKong33]

*IMPORTANT news* Will be 24$ by end of month

MNYC & Shortards might find it discomforting to know that lately the sec submits its comments on HRBN 30 days after proxy date per 10Q that's next week .... Thanks for the $$$, and all us longs lets have nice BBQ with short ribs to celebrate the defeat of Citron and amateur shorts who are going bust.

AND MNYC Lmao i see you believe anything you read from some fraudulent short seller site, you've shown your stupidity by attempting to investigate the complexities of RTO mergers. Have you personally tried to investigate things outside Citron's allegations? Over the last 2 years had you followed Citron's short predictions you be down 31% to this date, so not even the statistics are on your side, let alone the out of context misinformation your gulping down you redneck beer belly.


see you at your homeless shelter MNYC

[MNYC]

Citron Research says absolutely fraud and they will prove it and that it will be 2.00 soon

[DonkeyKong33]

NO FRAUD HERE
The earnings are completely irrelevant. The money is already committed. There is no reason for the company to report good earnings.

As far as the shorts threatening the SEC will stop trading, if there is something wrong, which there is not, the SEC would be happy to see this company get bought out and leave the U.S. markets.
The SEC is not in the business of protecting short sellers.

The shorts can make whatever threats they want to protect their position, but this deal is 100% set.

As far as fraud is concerned, Yang is a the equivalent of a Congressman in China. If there was something wrong, the China Development Bank would have found something. It does better due diligence than the short sellers.

[MNYC]

Too bad no Borrows available yet for this POS. I will be in touch with TDA on Monday and the coming week to see what the case is.

[DonkeyKong33]

Im going to enjoy taking shorts money.. From a complaint perspective who is going to file. Andrew Left, Roddy Boyd and their disciples ? The longs about to receive $24 a share are not going to complain about Harbin, they might if the money doesn't come through but that is not now.

"Hi I'm Andy and I'm up in the mountains of LA and I've been writing nonsense about Harbin electric so I can short it but it's not working so I need you to investigate" Right... that's not going to cut the mustard.

In fact the complaints the SEC has received relative to Harbin are likely weighted in favor of the longs fed up with the short attack.

[MNYC]

HRBN - Completely Exposed. Will short this pig down: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65935153

[DonkeyKong33]

FSIN & HRBN BEST CHINESE BUYOUTS OF 2011
HRBN&FSIN BEST CHINESE BUYOUTS OF 2011
HRBN currently at 19$ - Buyout 24$

----------------------------------

Maxim Group said that Harbin Electric (NASAQ:HRBN) has filed all necessary SEC documents regarding its LBO and noted its advisors have conducted their own due diligence.

The firm states the company needs to resolve its litigations before closing the transaction, which it believes, will close by the end of the year also that any major gap between the share and LBO price produces a buying opportunity.

Harbin Electric has a potential upside of 35.7% based on a current price of $17.69 and an average consensus analyst price target of $24.



FSIN Currently at 7.80 - Buyout 11.50$

--------------------------------------

No fraud has been found at FSIN.
An $11.50 MBO proposal remains on the table and is currently being evaluated by the Independent Directors while the buyers are performing due diligence under the negotiated and executed confidentiality and standstill agreements.
Current valuation is outrageous on every conceivable measure (at less than 2x EBITDA, cashflow and earnings).
FSIN has engaged established financial, legal advisors and auditors in the form of BofA Merrill Lynch, Gibson, Dunn & Crutcher LLP and KPMG.
FSIN is a multinational corporation with over 500 customers in 30+ countries, with operations in the US, UK and PRC and an operating history that spans 5+ years. FSIN also has a credit facility provided by Regions Bank - a sizeable and respected American bank with very little appetite for off-the-fairway lending. Meaning that they are likely very comfortable with their collateral.
As of March 31, 2011, FSIN reported ~$3.50/share in cash as confirmed by KPMG (likely will be higher as of 6/30), accounts receivable and inventory totaling ~$2.14/share as well as PP&E of ~$3.19/share.
The longer the shares trade at such discounts, the greater the likelihood for success of a buyout by insiders and Abax or any other strategic/financial buyer for that matter. Management is well aware of this fact and will not speak up regarding progress until a definitive agreement is reached (as is in their long term financial interest).
Short interest in the US listed Chinese sector is at all time highs due to the indiscriminate shorting of Chinese companies (which FSIN is inappropriately included in given their global operations and customer base). Over 20% of shares outstanding and 30% of float for FSIN was sold short as of June 15; the remaining shorts will cover at some point, and it should be quite a run when that occurs.

Max downside is 100% if the company magically disappears (assigning some reasonable probability range here is sensible). For those of us that don't believe in magic, let’s focus on some potential measures of upside:

Almost 100% upside associated with the $11.50 buyout offer.
Roughly 50% upside just to get back to the March 31 tangible book value (which will likely be higher at 6/30 due to cash generation).
Potentially over 100% upside based on peer valuations.

One has to appreciate that even at $11.50, the insiders and Abax view this deal as incredibly cheap and expect to generate wildly attractive returns in short order by relisting Fushi Copperweld on the Hong Kong stock exchange.