SORL - SORL Auto Parts Message Board

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Non-Tech : SORL - SORL Auto Parts

SORL 4.710

0.0%

May 15 4:00 PM EDT

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From: Tom Caruthers	2/13/2008 1:24:05 AM
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SORL looks weak, having broken below some key support. Looking at the price action, it's just a handful of shares driving the stock down. Could be short selling. Could be someone trying to liquidate. I have some reservations. One thing that makes me nervous is some of the deals that SORL has had with parent company, Ruili Group. This latest $20M factory/office/land purchase was supposed to be at arms length with an "independent" valuation assessment, but how could it be? That raises the speculation that SORL overpaid for the asset or is being manipulated to provide cash to its parent. Despite draining cash, however, management feels that they have sufficient working capital to run the business. The dilution from the financing done at the end of 2006 continues to weigh on the company, causing EPS growth to look relatively unchanged from 2006-2007. However, we should be in better shape for a good 2008 to 2007 comparison. I will wait to see how the stock settles out here before buying more. I continue to be very positive on this company's chances. Tom

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