SNP and PTR, don’t dare to short it

(for details pls visit www.OptionPundit.net)

Doesn’t matter if Mr Buffet has sold off Petrochina (PTR), it is scaling new highs every other day. Both PTR and SNP are hugely-up in pre-market actions today. SNP is up over +$14 and PTR is up +$10! Oils bears (especially those who thought China oils are expensive) will be caught off-guard. I wonder what do analysts at Credit Suisse think of Oil now. CAM, COP, you name it, all up!

I sold my ZINC shares last Friday (insiders can now start selling shares, starting Monday and the weakness of shares is already reflected in the shares). If stock doesn’t dip much despite “share supply” in the market, previous high $26.14 could serve as a good entry point. In my opinion, shares are good long term buy as Horsehead is really a horse when it come to Zinc and related by-products.

I like Xinhua Finance Media (XFML). The company makes money, still well below IPO price and mind it, they have already authorized share buyback. Larry Kramer, founder and former CEO of MarketWatch, a financial news Web site now owned by Dow Jones & Co., and Steve Richards, chief operating officer of Silver Pictures, which has produced such movies as “V for Vendetta” and the “Matrix” series, are the two newest Americans on the publicly held company’s board. Besides that Billionaire Ron Burkle also became part of the company via his Yucaipa fund which got a pretty nice deal when it purchased a stake in Xinhua Financial Media at the end of September. The 8.57 million share stake, which was purchased from company insiders, cost the fund $25.72 million or $3 per share.

FAST missed, it will find support around $45, and will re-bounce. Those looking for intraday, it may offer some quickies. Infosys (INFY) has beaten estimates but shares are down. I may pick-up some intraday play as there is nothing wrong. INFY did a pretty good job despite weakening U.S. dollar, on average, 40.19 rupees during the July-through-September quarter compared with 46.29 rupees in the same quarter a year ago. Infosys generates >60% revenue from North America.

I am bullish on ATW and am looking for a quick break-out play.

Profitable trading, OP


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6 responses to “SNP and PTR, don’t dare to short it”

  1. Todd Avatar
    Todd

    Correction, Ron Burkle did not get his shares of XFML at $3, instead he got them at $6 each.

    This is because each ADR shares represents 2 real shares.

    Please post a correction to your October 11 column, thanks

  2. OptionPundit Avatar

    can you pls mention the source of your info?
    my source was from this:
    http://www.tradingmarkets.com/.site/news/Stock%20News/690659/

    This no where mentions that each adr represents 2 real shares. Rather the source say 8.6million shares…

    Profitable trading, OP

  3. OptionPundit Avatar

    Thanks for sharing Todd, based on this it is clear that one ADR share was equivalent 2 common shares. I then pulled Form 13-d,
    http://www.ownershipanalyzer.com/ViewFiling.aspx?accessionNo=0000905148-07-006440

    This says that they bot 8,574,022, which is equivalent of 6.2% based on 138,072,540 common shares outstanding as of September 28, 2007.

    The report source I mentioned doesn’t say if they bot ADR or common shares it says “shares”. Based on Yahoo statistics, XFML is currently being traded as ADRs (they mention 67.94 shares outstanding which is slightly less than 1/2 of what is mentioned in the Form 13-D).

    Based on ownership analyzer, they paid $7.6/per common share….
    http://www.ownershipanalyzer.com/FilerHistory.aspx?cik=1389476&ticker=XFML&filerCik=1414329

    Hummm…..the more I look into it, more I am convinced of your data point being correct. Let me research a bit more and I shall post a correction, if needed….

    Thanks for highlighting, Profitable trading, OP

  4. […] is to update my comment on Purchase price for XFML shares by Ron Burkle. Based on trading markets I mentioned that “Billionaire Ron Burkle also […]

  5. […] one of the few chinese stocks that are trading well below IPO Price. I am long XFML and you may read more for my perspective on this, […]

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