China Unlimited

[RealDutch]

CXDC. Let's analyze some more.

They have a pretty good growth story as well. Current utilization is 400,000 MT while capacity is growing towards 700,000 MT. They just have to make sure they don't start losing customers (who can't pay) like CCCL. I suppose they will be fine.

Nevertheless, being public is hurting these companies more often than not.

I think the going private offer of $5.21 is still on the table. Morgan Stanley paid $6.25 for the stock. So the next offer should be $6.50 and it will be approved by the BOD.

The CEO had to go from 49.3% to 50.1% in order to get the $135M loan (and pledge his shares). Why didn't he just issue 1M new shares for $2.05 instead of the complicated route of buying them from other insiders? Answer : That wouldn't be fair if he is planning to buy the minority shares for a lot more than that. So he can't. Someone on SA alerted me that he doesn't have to pay for the shares he bought from other insiders until 2024. So the CEO is not actually paying 2.05 for the shares, yet...