Thursday, October 16, 2008

Follow up on 理文造紙 (2314)


理文造紙 (2314) came out after the market closed and said that they are selling a subsidiary for HK$200 mil.

The reason I bought today was because I knew yesterday night that they called a press conference for today at 5:00pm, "to talk about on going operations"

Which coming right after their credit downgrade, I predicted would be about solving their liquidity issues.

So with this sale to raise money, see how the market will react on Monday.

Hopefully some will price in the fact that this is the first sale. More sales will come and they might not price in bankruptcy for the company.


  1. Pakman,

    You win. Now the stock price is $2.35.

  2. Even I know it isn't but it similar to insider trade as you know some information in advance of the public!