Apparently, this is how it ends. It's been an interesting ride folks. $6.60 is a disappointing exit price, though hopefully most of us will at least end up in the green. Not surprising that MSPEA, management and a couple other entities would join together on this proposal:http://finance.yahoo.com/news/yongye-international-inc-annou...Perhaps there is some solace in the fact that we came out far ahead of the various Fool services that jumped ship at about half the price (MDP and Fool Funds--GG closed w/ Yongye on hold at $3-something).
Disappointing, but yes, not surprising. It has been a very interesting journey with this company and stock!
It's possible the price may go up a bit, as this is just an offer, although I've gotta figure they will agree on something pretty quickly. The company I work for went private a couple years ago and similarly received an offer by a large shareholder to buy out the minority shares. The price was revised up a bit before it was finalized. There will most likely be some type of class action given the low price, but most likely, if you join, you'll probably have to wait several months/years longer to get paid than if you just took the $6.60.
I briefly thought about buying more Yongye this morning as we are still more than $.80 from $6.60, though now I am thinking CGA may be a better buy, as it is edging up only a few percentage points, though it could be next (and my CGA position is much smaller than my YONG position--gotta get my Chinese ag exposure somewhere!).
6.60 is curiously exactly my cost basis on my shares. Crazy how that works. Of course I have sold and rolled so many puts on this one I had gotten it into the green overall, but at a lot of effort. This makes the total solidly profitable. I will take it.I am OK not following this one anymore. what is the date this will occur? I did not see it in the note.
what is the date this will occur? I did not see it in the note.The Special Committee of YONG's Board of Directors (which excludes anyone making the offer) is still considering whether to accept the $6.60 offer so there are no dates yet.
Didn't see any deal closing date either. Too bad if the buyout happens at this ridiculously low price. If it happens, I'll make a small loss (-15%) after holding the stock for a couple of years.
A sad story ... Lot of risk, small profit ...This is happening in several companies like HOGS, YONG, WWIN... It was a risk I didn´t take in mind when I decided to invest in high risk microcaps chinesse companies...
WooHoo! How many times have I considered just dumping this pig yet I held on stubbornly. My cost basis is a hair under $6 so if all works out I'll at least walk away with a little profit. All I need now is for CSCC to follow YONG's lead and I'll bid a fond adieu to Chinese small caps forever.
It will be interesting to see how YONG responds to the inevitable lawsuits for breach of fiduciary duty due to the low price. Chinese companies usually ignore these suits and just do the deal. They can afford to ignore the suits because they have no assets in the U.S., even if they are incorporated here. (YONG is a Nevada company, by the way.) But suing MSPEA might be more productive; they almost certainly have U.S. assets in U.S. banks, and even if they do not, they won't take the reputational hit of defaulting on a lawsuit. So I expect them to engage, IF they are sued. I spoke to Mr. Levy of Tripp Levy (which announced the first investigation this morning) and suggested looking into MSPEA. We may see a small bump in the share price. But if they close the deal at $6.60, then it is over; Mr. Levy said that cases either settle or they withdraw; they don't ever go to trial in these cases, so we'll know within a few months whether anything will change.I did buy more shares this morning. I believe this transaction will go through at a minimum of $6.60, and a 15% (or more) gain from here is nothing to sneeze at. If the price comes down much from here, I will buy a bunch of call options.
Ah, congrats. I will actually make good money on YONG, but not as good as I could have. I sold call options last week at a profit, but not at what I could have made. And I'm still stuck in CGA and other China small caps. I think most will be bought out, but not at prices near my cost basis.
Mr. Levy said that cases either settle or they withdraw; they don't ever go to trial in these cases I know of one that recently went to trial and the shareholders that were suing were awarded much more than the deal that the rest of the shareholders originally got (about 50% more). This was this past summer so these things do happen. I'm not sure if it is public information and I am an insider so I can't specify the name of the company, but it was a U.S. corporation, not in China.
Very interesting, thanks.
Question - why didn't the price jump up closer to $6.60? I've only been investing in individual stocks for 4 years & this will be my 1st company going "private" but of others that I've observed, when the announcement is made, the stock price always seems to zoom right to the buy-out price. This did not.Also, I am NOT happy with this price at all. I thought if it was taken private, it would be at LEAST $9! What are the chances that the actual buy-out price will be much higher?Thanks for any insight.
I suspect it is because this is only an announcement of an 'offer' as opposed to the company actually going private.It may also be because the 'offer' can be considered unrealistic and therefore, less likely to be accepted. Just my guessing, mind you. But with the company valued recently at closer to $7.60, it seems there would be a good chance the offer would be declined - no buy-out.
I'm not sure if it is public informationApparently it is public info, and I was wrong about how much more the verdict was, the shareholders that sued actually got more than double what the rest of the shareholders got, 128% more to be exact ($4.67 vs $2.05). link belowhttp://www.rlf.com/KnowledgeCenter/EAlertsNewsletters/4482
Thanks for the info.Ellipsoid
Wow - fascinating, +1! A Delaware precedent no doubt won't apply to Nevada, but I find it extremely interesting in itself.
Freud,"It was a risk I didn´t take in mind when I decided to invest in high risk microcaps chinesse companies... "Now that's funny. Spot
--Dredu---not Freud. How weird is this auto check? Spot
I remembered the title of this thread and just thought I'd dig it up.It's not over till we say it's over!:)
Haha, nice one, mekong! I am happy to have been wrong. So happy, in fact, that I just bought back some of the shares I sold in the past couple weeks. And, thank you, mekong, for your continued posting here.I will now admit that I don't know how this ends, though MS and Wu now seemingly have less reason to try to hide their earnings and hold down the share price now + they can only hide their profits for so long. Investment here requires speculation re MS and Wu's next move, though I believe that the likeliest scenarios will produce a nice upside from here (rather than going "dark" or worse shenanigans).
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |