Lihua International Investor Day
Since LIWA has been caught up in the Chinese RTO conspiracy ring, it was at least symbolically important for them to host an investor day for analysts and the media to get to meet the company management and tour facilities.
The stock only bounced 2% on a very low volume of 102K shares showing how these events just don't resonate with investors that can easily discount anything they see as staged. What it will really take is analyst coverage from some major Wall Street firms or just time to elapse as the Chinese companies still standing will eventually be seen as legit.
The presentation was mostly a rehash of the data from the Q1 call or in the Piper Jaffray China Growth conference from last week. A few data points though possibly reported previously were interesting to highlight as below:
- Most significantly was the news that the CEO bought 40K shares on Monday with a hint that it was just the beginning.
- Company has bought 70K more shares since the last announcement
- the scrap license should get final approval soon. Limited imports should begin in June. Remember this should reduce costs by $150/ton.
- Potential additions of a new smelter and a wire drawing line would only take 3-4 months of construction since the new facility has available space.
Disclosure: Long LIWA in client and personal accounts. Please review the disclaimer page as this information is provided for informational purposes and not a investment recommendation.