China Recycling Energy Corp (CREG)

[Skinny Mulligan]

$CREG is pulling a fast one! They are issuing more shares & warrants for a measly $9M; but dont need cash! At current $5 SP, this will dilute current SH value 66% if all are exercised. A private equity firm (CG) is a major holder. The controlling holders are issuing shares that probably only they can buy and then liquidate, effectively steal from other shareholders. Example:

Current liquidation value is $19 per share. After issuance, liquidation value is $14/SH. Assuming 50% of holders are in on this larceny. Before new issuance liquidation value is $67M in liquidation. AFTER the issuance they bought for $23M - ownership % is 68% & $104M (their share) liquidation value. By buying $23, they get an ADDITIONAL $14M. That comes out of the pockets of everyone else.

Looks like class action lawsuit behavior to me.