I have been a heavy buyer of CHOP the last two days. I understand that there is a general aversion to Chinese stocks, so you don't have to point out the accounting irregularity risks. I am well aware of them. CHOP is not an RTO. Here is a Seeking Alpha write-up by one of the directors and a major shareholder in the company. It is a year and a half old, so the economic situation in China has definitely changed since then, but it will give you a general impression of how this company is different from the hot-rolled steel companies.
seekingalpha.com
Here is the profile of Harry Edelson who submitted this piece to Seeking Alpha.
Harry Edelson is Managing Partner of Edelson Technology Partners (ETP), a pioneer in global Venture Capital. Mr. Edelson has 40 years experience in technology and investing. He has held positions with Unisys, AT&T, and Cities Service, and was a securities analyst on Wall Street with CS First Boston, Merrill Lynch, and Drexel Burnham Lambert. He served as President of the Analysts Club, the oldest club on Wall Street, founded in 1925, and current Chairman of the China Investment Group. He is also a member of the Juilliard Council, the Chinese Business Lawyers Association and a founder of the Chinese Cultural Foundation. Mr. Edelson received his BS in Physics from Brooklyn College (1962), MBA in Management from NYU
Here is a link to the CC transcripts. I have read all of them and I would recommend anyone to read them if they are interested in the company.
seekingalpha.com
The balance sheet for this speciality steel company is exceptionally strong and today they announced that they are going to buy back shares, which explains the bounce in the stock today.
China is in the process of cutting off funding to the steel sector and clamping down on emissions. Both of these trends should help CHOP by reducing the production glut. Despite the horrific quarter that they recently announced, the company is still guiding for a small increase in revenues. I intend to hold this for a while as it will take some time for the economic picture to improve. But I believe CHOP will be a survivor and will be higher than the current price in a couple of years.
To date, I have not found not found any record of Harry Edelson selling shares in CHOP. |
