Tuesday, November 10, 2009

China Strategic 0235

Hires ex government minister (Secretary for Financial Services) Frederick Ma for $3.5m. Also hires Raymond Or Ching Fai for $9.24m salary. Granted options worth $462m. Total: $475m.

Has 131 staff and trades in 'battery products'. Had revenues of $18m in 2008 and has an average loss of $100m for the last 5 years. Had a capitalization of $100m.


In 10th November they announce acquisition of Nan Shan resulting in a 80% pop in share price.

Incredibly intuitive of the individuals back in June to invest in a money losing battery products company which is looking for acquisitions. Highly unlikely that they had prior knowledge about China Strategy diversifying into a totally completely different business line by buying a life insurance company.

Mud like transparency.

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