Liberty Posted April 8, 2013 Posted April 8, 2013 http://www.bloomberg.com/news/2013-04-08/suntech-jumps-on-buffett-buyout-report-china-overnight.html Chinese solar manufacturers rallied in New York, led by Suntech Power Holdings Co. (STP), on a report that billionaire Warren Buffett may be interested in buying the company forced into bankruptcy after defaulting on debt.
infinitee00 Posted April 9, 2013 Posted April 9, 2013 This looks like a pump and dump. I very much doubt it will happen. I also doubt an STP shareholder buying shares today will get anything, even considering the miniscule chance Buffett buys it.
T-bone1 Posted April 9, 2013 Posted April 9, 2013 This looks like a pump and dump. I very much doubt it will happen. I also doubt an STP shareholder buying shares today will get anything, even considering the miniscule chance Buffett buys it. +1
claphands22 Posted April 9, 2013 Posted April 9, 2013 Time to short Suntech.... There is no chance is god's green earth that Buffett will buy Suntech.
infinitee00 Posted April 9, 2013 Posted April 9, 2013 Time to short was 1 yr back, 6 months back, even 3 months back. Now its time to cover IMO as the incremental returns for holding the stock short in addition to the carry costs is not very attractive.
claphands22 Posted April 9, 2013 Posted April 9, 2013 I was being facetious about shorting Suntech, but I just checked the cost of borrow on Interactive: 27.25%, down from 40% in the end of March. :o
Hielko Posted April 9, 2013 Posted April 9, 2013 I'm (still) short STP... let's hope Buffett has't lost his mind :P
claphands22 Posted April 9, 2013 Posted April 9, 2013 I'm (still) short STP... let's hope Buffett has't lost his mind :P After thinking about it for a while, I couldn't help joining you Hielko. I'll demand back all my hours watching and reading about Buffett if he buys it.
claphands22 Posted April 11, 2013 Posted April 11, 2013 I couldn't get over the report it sounded too fishy for me. I contacted the author of the Bloomberg report to ask about her source. She pointed me to this http://www.etnet.com.hk/www/tc/news/categorized_news_detail.php?newsid=ETN230408315&page=1&category=china It hurts thinking about...this is ridiculous
Hielko Posted April 11, 2013 Posted April 11, 2013 Yeah, up 100% on that... also amazing how much trading volume there is in STP. $160M market cap and trading volume like it is MSFT. Too bad that borrowing costs are still pretty high.
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