Just when I was starting to think Advanced Battery Technologies
Investors who have been investing in China or even watching these stocks can’t be too surprised. It has become commonplace for Chinese firms to treat U.S. shareholders like dirt, and Advanced Battery Technologies was probably just keeping to the tradition. When I wrote about the company’s solid earnings last month, I warned that although everything looks great, you never know what management is going to do. Last week we found out.
Of course, not everyone saw this as a red flag. Analyst Paul Resnik thinks the company will “make a significant and, in our opinion most likely, accretive acquisition in the near term.” Soothing words, as investors bandage their wounds.
I remember hearing the same thing once before, and it didn’t seem to end well. One of my old holdings, American Oriental Bioengineering
Share offerings by competitors A123 Systems
Despite analysts’ insistence on thinking this was a good offering, I see this as a red flag for another Chinese company that doesn’t care about shareholders. What do you think about Advanced Battery Technologies’ offering? Will the company wow us with growth or are we in for another dive like American Oriental Bioengineering?
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