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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?
I see Texas Redneck only manages to regurgitate what bloggers say, glad your not actually doing this professionally
8-K filed to SEC, this keeps looking worse & worse for the shorts
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?
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
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?
Good for you, you wont become a homeless
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!
SEC validation next week is all the investment community needs to light your shorts on fire next week, see you at the bum house
*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
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.
Long @ 7$, Cant wait for short squeeze on earnnings
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 $24 a share are not going to complain about Harbin, they might if the money doesn't come through but that is not now.
"Hi I'm Andy and I'm up in the mountains of LA and I've been writing nonsense about Harbin electric so I can short it but it's not working so I need you to investigate" Right... that's not going to cut the mustard.
In fact the complaints the SEC has received relative to Harbin are likely weighted in favor of the longs fed up with the short attack.
FSIN & HRBN BEST CHINESE BUYOUTS OF 2011
HRBN&FSIN BEST CHINESE BUYOUTS OF 2011
HRBN currently at 19$ - 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 $11.50, the insiders and Abax view this deal as incredibly cheap and expect to generate wildly attractive returns in short order by relisting Fushi Copperweld on the Hong Kong stock exchange.
HRBN&FSIN BEST CHINESE BUYOUTS OF 2011
HRBN currently at 19$ - 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.
This is getting really frustrating This selloff is getting realy ridiculous. Such a severe selloff in such a good company. Just shocking. with 65% of the company in cash the ratio across the board. Historically I doubled my money and sold at Feb, then I started placing small bets at the low 16's a few weeks ago and managed to break even... I think this is oversold and due for a pop.... So I started POS at 14.97 today will add more on dips...
All the negatives have been priced into the stock & some nice potential upside to come..
The positives in the pipeline for the coming months:
- The rumored amazon tablet "Canaccord Genuity’s chip analyst Bobby Burleson writes that Amazon.com’s (AMZN) rumored 10-inch tablet computer is undergoing “a strong build” of over 1.5 million units this quarter, with perhaps 4.5 million to 5 million units of the device planned for all of 201"
- Their expansion tegra 2, tegra 3 chips which are for mobile devices such as ARMH android smartphones, personal digital assistants, and mobile Internet devices. The Tegra integrates the ARM architecture processor CPU, GPU, northbridge, southbridge, and memory controller onto a single package. The series emphasizes low power consumption and high performance for playing audio and video.
http://stockcharts.com/h-sc/ui?s=nvda
Earlier today competitor, AMD got downgraded gaining NVDA greater market share
http://www.marketwatch.com/story/jmp-cuts-amd-says-role-becoming-ir...
When a stock declines to this day as much as AMD does compared to the overall S & P for consecutive years, it indicates an overall poor guidance by the company. Two key distinctions in valuating the stock between NVDA & AMD is by their current balance sheets where AMD is indebt 2.66 billion and NVDA has a surplus of 6 billion..
Additionally AMD has done the big mistake of focusing mainly on the declinning personal computer market excluding the emerging tech trends like smartphones & tablets that are likely to dominate the future tech market, something that AMD has publicly stated won't be on board until 2013-2014 giving all their competitors a huge head start. Talk about the tortoise vs the hare in an industry where the hare is rigged to win. This is the reason I choose NVDA over AMD.
DEALS GOOD!!
Many investors are skeptical about the funding sources for MBOs from companies like CSR, HRBN, and FSIN. But in these three cases and many others to come, the money is coming from the China Development Bank (CDB). The CDP is not like J.P. Morgan, B of A, or even the other banks in China. It is a policy bank. This means it is controlled by the government and used for the purposes of making economic policy. In this way, it is more like the Fed than a regular bank.
The China Development Bank in Hong Kong has a unique problem. It is awash in dollars. It has gotten these dollars through buying U.S. T-bills and other assets. However, it wants to get rid of these dollars before the RMB appreciates any further. If the U.S. pays it 2% on T-bills and if the RMB appreciates 5% a year against the dollar, the CDB loses money. As a result, it is willing to make deals that help it to get rid of dollars at much lower interest rates and on much better terms than other institutions.
In doing an MBO, the China Development Bank is in essence sending RMB to Chinese companies and getting rid of its dollars by paying off U.S. investors. If it charges Chinese companies 8%, this is far better than the -3% return it is getting from holding T-bills. So there is great pressure on the CDB to make these kinds of transactions.
Many investors are skeptical at the delay in the HRBN deal. As we have noted in previous letters, we believe the delay has been caused by the conflict with Morgan Stanley. As you may remember, HRBN announced Goldman Sachs was representing the buyer (management), and Morgan Stanley was representing the seller (the shareholders). Originally, the deal was going to be financed by Baring, but HRBN changed to Abax, with capital from the China Development Bank.
If you go on the Abax Global website and click on “About Us,” you will see the sentence, “Morgan Stanley through its investment management division is a strategic investor in Abax.” This means Morgan Stanley is also part of the buying group. In other words, Morgan Stanley is representing both the buyer and the seller. We do not know how this fact escaped Morgan Stanley, Goldman Sachs, or the lawyers, but in our view something was missed.
We now believe the independent directors, have hired another international investment bank to review this issue and give a fairness opinion that Morgan Stanley is not conflicted because it is only a passive investor in Abax.
We ironically believe the only major issue at this point is the price. Management has the capital and is willing to pay $24. We believe the independent directors would like a higher price, perhaps because it would help them to avoid litigation.
We believe the independents will announce that they have accepted a deal within the next week and that the deal will be completed in three to four months. Assuming 4 months, which we believe is the outside limit, and $24, which we believe is the lowest possible price, investors would have a 203% annualized return from current prices.
We have held discussions with other companies that are currently in negotiations with Abax and the China Development Bank. Each of these companies told us they think the HRBN deal has better than a 95% chance of success.
We have read the short sell reports, but we have also spent a lot of time with management and with other companies currently working on MBOs, we are firmly convinced this deal with happen and happen soon.
I posted this after a hedge fund VP who personally been involved with the paperwork of the merger had lunch with my mother, a hedge fund investor, today (obviously wanted her as client so was giving her some good tips), basically explained that the CEO of HRBN is desperate to buy back his company to make it private again at 24$ a share within the next few months of this date, the shares are currently trading at 15.51.
HRBN rebounded about 100% within 2 trading days from its 8$ low once this peice of news came out
" Shares of the Chinese electric motor maker soared as much as 73% yesterday following news the company has agreed to be bought by its chairman and CEO and a private equity fund for $24 a share in cash, offering a premium of 186% on HRBN's share price at the end of last week. The deal, which values HRBN at close to $750 million, will result in the Company going private."
I am buying 40k @ around 16 tomorrow and holding till this merger is completed. GLTA
This fairly well written analysis sums that the deal will happen...
http://www.filedump.net/dumped/download1309268277.pdf