Author Topic: SORL - SORL Auto Parts, Inc  (Read 11893 times)

undervalued

  • Sr. Member
  • ****
  • Posts: 423
Re: SORL-SORL Auto Parts, Inc
« Reply #30 on: February 27, 2020, 09:02:38 AM »
Interesting spot now. Share price collapsed the past few days. Apparently the market thinks it is quite likely the deal will get cancelled, regardless of the definitive agreement. Can't say I completely disagree. The whole Corona thing seems like a somewhat valid excuse to weasel out and the $1.1m reverse termination fee isn't exactly the largest in the world. No position. Intriguing though.

Have you sold your tiny positions?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers


Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 1163
Re: SORL-SORL Auto Parts, Inc
« Reply #31 on: February 27, 2020, 10:11:06 AM »
Interesting spot now. Share price collapsed the past few days. Apparently the market thinks it is quite likely the deal will get cancelled, regardless of the definitive agreement. Can't say I completely disagree. The whole Corona thing seems like a somewhat valid excuse to weasel out and the $1.1m reverse termination fee isn't exactly the largest in the world. No position. Intriguing though.

Have you sold your tiny positions?

Did you read what you are quoting?

writser

  • Hero Member
  • *****
  • Posts: 2097
Re: SORL-SORL Auto Parts, Inc
« Reply #32 on: February 27, 2020, 10:34:38 AM »
Haha, yes I sold in late December. I like the occasional controversial Chinese merger but at some point this was trading above $4.50 and shortly even above $4.60 while no preliminary proxy whatsoever was filed yet. At that point the IRR would be in the high single digits. Even if this was a prime US merger that would not have been spectacular and, as was discussed in this thread, this was actually a Chinese deal that was a bit more hairy than average. I didn't think buying / holding at that point was defensible so I sold.

Maybe today is still a good buy (with the power of hindsight: it certainly was a few hours ago!) but there are a few reasons why I didn't pull the trigger:

1. Given the current situation in China reneging on the deal might actually be a good / profitable strategy for the buyer (especially given the low reverse termination fee).
2. In terms of hairy Chinese situations I like BITA and especially Yixin much better and I don't want too much exposure in that space.
3. When the market is super volatile I have a tendency to buy too much crappy stuff too early. I think this could be an example of that. At the moment I have a ~15% cash position and I don't want to stuff all that into a few shitty mergers the first week the market goes down.

On the other hand, maybe all the fear mongers influenced me and I was too scared but should have pulled the trigger and am trying to rationalize that after the fact :P . Don't really think so, but still ..
« Last Edit: February 27, 2020, 10:37:54 AM by writser »
I'm sorry if I have offended you. Please contact this forum's safe space coordinator to work thing out.

@thewritser

undervalued

  • Sr. Member
  • ****
  • Posts: 423
Re: SORL-SORL Auto Parts, Inc
« Reply #33 on: February 27, 2020, 10:52:09 AM »
Interesting spot now. Share price collapsed the past few days. Apparently the market thinks it is quite likely the deal will get cancelled, regardless of the definitive agreement. Can't say I completely disagree. The whole Corona thing seems like a somewhat valid excuse to weasel out and the $1.1m reverse termination fee isn't exactly the largest in the world. No position. Intriguing though.

Have you sold your tiny positions?
Yep, I guess I should've quoted the previous post to make things connect together.
Did you read what you are quoting?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers