Big Investor Actually Bullish on China RTOs
He didn't talk about Puda Coal (PUDA) in this interview, but he is an investors in the stock so he has done some due diligence on the company and likely visited them. PUDA should be announcing some news shortly on the $12 buyout offer from the Chairman. PUDA was a big investment in our Opportunistic portfolios so we're hopeful that Peter is correct. The $12 buyout would be much better than nothing, but we're still looking for a higher price.
After a very one sided market, its nice to see somebody like Peter on CNBC's Strategy Session backing up my theory that the surviving China stocks will trade up. Many of the announced manager buyouts will be completed this year according to him. He also expects 5 more announcements in the next few weeks. It wouldn't surprise me to see Lihua International (LIWA) to get an offer though I can't find any evidence that Guerilla is involved in this stock.
Watch the video. If anybody takes Muddy Waters at face value, you have to also take this point of view as well. Finally somebody providing the other side of the story. Peter actually had an interesting point on the auditors that I had not heard before. Supposedly a lot of the big investors chose the auditors so its more a matter of the auditors becoming overwhelmed then the company choosing an auditor to give them a favorable opinion.
Disclosure: Long LIWA and PUDA in client and personal accounts. Please read the disclaimer page. This post is for informational purposes only and should not be construed as personal investment advice.