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Longitude And Weft Textile Machine: Risk Of Reopening Stocks After Continuous Shutdown

2010/6/13 14:25:00 27

Transaction performance: a long time suspension of Jingwei Textile Machinery (000666) announced on Wednesday, 1 billion 200 million yuan to buy 36% of the fusion trust, the stock resumed on the same day, two trading days, the stock price continued to shrink, the market responded to the company's takeover response low-key.

Comment: as a large Chinese company

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Machinery manufacturer is the only enterprise group in China that has integrated research, production and trade of cotton textile complete sets of equipment. Its main business is the development, production and sale of textile machinery and its accessories. It is a national high-tech enterprise. Its predecessor is the original Jingwei Textile Machinery Factory, which has more than 50 years history.

The Jingwei Textile machinery, which has been suspended since the first trading day of this year, announced the takeover in January 27th. The company acquired 36% stake in Zhongrong International Trust Co of Zhongzhi Group Co. Ltd. and obtained the controlling stake in the fusion trust.

According to the share pfer agreement, the pferable price is 1 billion 200 million yuan.

The announcement shows that as at August 31, 2009, the book value of China Trust Trust was 566 million yuan, and the assessed value was 3 billion 567 million yuan.

Based on this calculation,

Jingwei Textile Machinery

The 1 billion 200 million yuan will be pfered to 36% of the fusion trust stock and the premium will be as high as 488.6%.

Prior to that, in November 4, 2009, Jingwei Textile machinery had a notice of the failure of the stock acquisition, and said that it would no longer discuss the acquisition of shares during the 2009 year, and then the company's share price did not fall due to the failure of the stock acquisition, but continued to rise.

There have been rumors that the company may include through the acquisition of the financial trust to enter the financial business, the acquisition of Zhengzhou heavy truck and private enterprise Zhejiang daily hair group strategic participation.

However, judging from the announcement and the performance since resumption, the acquisition of the company is clearly not recognized by the market.

It is worth mentioning that, due to the recent weak market and sluggish popularity, many companies have made some ups and down behaviors whether or not they are good after resumption. This also reminds investors of the risk of blindly pursuing the theme stocks to a certain extent.

Public trading information shows that the last day of trading before the company's suspension is in the hot money.

Galaxy Securities

Wenzhou Sales Department has some meat cutting activities with CITIC Securities Shanghai Liyang Road Securities Business Department, while Shenyang securities business department of Shenyang merchants and Shenyang Songhua River Street Sales Department of state Yuan Securities still seem to be stuck.

Taking into account the stock resumption two days were continuously nailed to the limit board, and the volume has obviously shrunk, panic plate has not been effectively released, the market should be cautious.