In light of the recent market panic in China, MCM Partners analyst Hank Terrebrood released a report focusing on potential deals to take U.S.-listed Chinese companies private. The growing spreads between share prices and potential buyout prices seem to indicate that the market has become skeptical that the deals will go through as planned.
The Numbers
As of this week, nearly all of the going-private deals that have been announced for U.S.-listed Chinese stocks are demonstrating double-digit spreads between share prices and buyout prices.
With many of the announced deals still in the early stages of completion, the recent turmoil in Chinese A-shares markets has increased the market uncertainty surrounding completion of the deals.
Two Possible Exceptions
In the report, Terrebrood notes…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!