Telestone Technologies Corp. (fka TSTC)

[kingswood]

TSTC AND CEO HAN SHOULD DO SAME THING AS HRBN CEO. GO PRIVATE.
Harbin Electric, Inc. (Buy)
HRBN: Potential buyout partner in place, deal moves forward. Reiterate Buy.
Ping Luo, CFA Senior Analyst | 646-264-5688 | [e-mail]
Jodi Dai Associate Analyst | 646-264-5666 | [e-mail]
January 11, 2011

https://ghsecurities.bluematrix.com/docs...

Summary:

Abax Global Capital (Abax), a beneficial owner of the company, filed a S13D yesterday disclosing that it has filed confidentiality and standstill agreements with the company with respect to a possible negotiated transaction. We believe this indicates Abax has entered into the bidding process in the buyout transaction, and is likely to become one of the equity partners with the Chairman, Mr. Yang. We believe the deal is making progress, and the Chairman is most likely to be able to obtain the financing to complete the go private transaction. The $24 offering price provides investors a 37% upside from current levels. We therefore reiterate our Buy rating and $24 price target.