$QD It is kind of wild tracking the slow motion privatization of HTT. Just based on old levels I would not be surprised to see this once again sink well below 2.00 and a price to tangible assets in the low teens. After taking my profits recently above 3.00 I am going to take this one very slow and expect them to kill all shareholders through boredom, get ownership to 70%+ and then take private. For now I just have a small watch position but will add of time on weakness knowing what is eventually coming. Played this one over the years for the exact same reasons.
$QD Restarted this position today in the mid-$2.40S after selling out in the 3s recently as posted for a decent clip. I’ll keep adding from here down and see how low it goes this time. Min Luo owns 66 million of the 115 million shares now outstanding. Before the recent $128 million share repurchase, the company had $10.61 per share in tangible assets. Because it bought back shares at roughly one-third of tangible book value, tangible assets per share have now increased to about $13.20. Wild math! The company is now sitting on approximately $1.53 billion in tangible assets against a market cap of just $287 million. I fully expect the stock to get weaker before it gets stronger. I also expect Luo will eventually take the company private, which could mean a double or more from current levels. The real question is timing. Only in China.
$QD Since I posted the buys I would note I am out the last of it at open. Good for a quick 21% overall on a decent enough position in a few days - no complaints. I will revisit on weakness for all the reason posted before but still worry about them doing another stupid deal.
