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My name is Phillip Lyon and I have created this website to help the small investor. My investment philosophy is to invest in undervalued stocks that also have a speculative aspect. My website contains free stock picks and stock market commentary so check back often and tell your friends about my site.
CAAS Plans to Acquire 36.5% of Henglong Automotive Parts Company
CAAS - China Automotive Systems (Nasdaq) - (Closing Price - $8.28)
China Automotive Systems announced that it has started discussions with Hubei Wanlong Investment Co. to acquire an additional 36.5% of Henglong Automotive Parts Company.
China Automotive Systems currently owns 44.5% of Henglong Automotive Parts Company. In 2006 Henglong posted sales of USD$54.54 million, representing 57% of China Automotive Systems’ total net sales and net profit of USD$9.75 million, while CAAS’ net profit was USD$4.81 million. Acquiring a bigger portion of Henglong will obviously be beneficial.
I don’t see any reason to sell China Automotive Systems and I would continue to hold your shares. According to Yahoo Finance the insider sells that were weighing on the stock price have stopped and there was even an insider buy on Dec. 3.
The improved financial numbers, recent positive developments (
Discloser: I have no position in CAAS.
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