"The company has over 3,000 cars on order from Volkswagen-China to use in their fleet.
The Chinese government released studies and projections that indicate the company will earn $30,000,000 USD per year." Meaning the company will earn (after taxes I presume?) $10,000/year. Thatis about $300/day per car. Not a bad business. They also project earning from this t go to $2.22/share, Gee, did they get this for free? The last deal costs $100 MM and was supposed to earn 7.8% on that investment, I wonder how many shares were issued to some well positioned Chinese landlords for this license.
Of course, the stock will gap possibly to 7, but sometime in the mear future when the greedy holders dump their shares, or I should say, after the pupming phase is over and reality sets in, the musical chairs game will be affot, and I wonder who would be holding the bag.
Zeev |
