Replies to post #425 on Wyndham Hotels & Resorts Inc (WH)

[hebercreeper]

http://seekingalpha.com/article/1609142-wsp-holdings-will-reward-short-sellers-soon?v=1375982518&source=tracking_notify

[DFRANK1970]

This is possibly why the major drop in PPS:

http://seekingalpha.com/article/1609142-wsp-holdings-will-reward-short-sellers-soon

Recommendation: Short WSP Holdings (NYSE: WH)

Catalysts: NYSE Delisting; termination of merger agreement after August 21; failure to obtain waivers for credit facilities from the bank

6-Month Target Price: $1.5 or less

Thesis

WSP Holdings (WH) is likely to terminate the merger agreement within a month. Judging by the current prices, investors seem to be confident that the deal will not fall through. However, the stock follows the exact trajectory that China Advanced Construction Material (CADC) took a year ago before CADC cancelled the going-private deal. Furthermore, the company has been in breach of the debt covenants since June 2012 and whether the company is a going concern remains a question. Last but not least, the stock is likely to be delisted from NYSE because the company may fail to file its annual report within the 6-month grace period. If any one of the three events occurs, the shares are likely to trade below the price level immediately before the announcement of the going-private offer.