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I may have found another interesting CHINA play.
SHA (Amex) – Shanghai Century Acquisition Corporation does not have significant operations. It intends to acquire, through a stock exchange, asset acquisition, or other similar business combination an operating business with primary operations located in the People's Republic of China. The company was founded in 2005 and is based in Central, Hong Kong. So it basically a shell company for new and upcoming IPO’s.
SHA is profitable and currently trades at less than 10 p/e with about US $3 in cash.
The CEO was formally a director at Hong Kong stock exchange. Here is the link to the rest of the management team:
Atorka, a Norwegian company just bought a 20% stake in SHA.
The best part is that they are buying all of the shares on the open market and not at some discounted price:
The total float for SHA is about 17 million shares but insiders own 9 million and about 6.5 million are owned by institutions such as Citigroup and Deutsche Bank:
So it looks like the “real” trading float is somewhere around 2 million shares.
Since CHINESE stocks continue to be very hard, people are looking for more and more for ones which have not moved (yet). ADY was a great example. Looking at SHA, I think it has the same potential once it is discovered. Short-term target of $10.50 is a good place to take initial profits.
SHA (Amex) – Shanghai Century Acquisition Corporation does not have significant operations. It intends to acquire, through a stock exchange, asset acquisition, or other similar business combination an operating business with primary operations located in the People's Republic of China. The company was founded in 2005 and is based in Central, Hong Kong. So it basically a shell company for new and upcoming IPO’s.
SHA is profitable and currently trades at less than 10 p/e with about US $3 in cash.
The CEO was formally a director at Hong Kong stock exchange. Here is the link to the rest of the management team:
Atorka, a Norwegian company just bought a 20% stake in SHA.
The best part is that they are buying all of the shares on the open market and not at some discounted price:
The total float for SHA is about 17 million shares but insiders own 9 million and about 6.5 million are owned by institutions such as Citigroup and Deutsche Bank:
So it looks like the “real” trading float is somewhere around 2 million shares.
Since CHINESE stocks continue to be very hard, people are looking for more and more for ones which have not moved (yet). ADY was a great example. Looking at SHA, I think it has the same potential once it is discovered. Short-term target of $10.50 is a good place to take initial profits.