For someone who claims to be holder you sure like to put a negative spin on all things KZA, the $5m was an investment done at a 20% premium with a strategic regional partner who will be incentivised to bring the product to market both by the direct revenue it creates for them and the dividends they will one day be receiving from their stake in KZA. These shares may aswell be considered to be in escrow for the lifetime of the deal and I wouldn’t be surprised if they are accumulating more from all the shortsighted impatient dimwits selling on market for a 10% discount.
Simcere had a team of specialists do DD and run through KZA books with a fine tooth comb and they would have considered $1.73 a discount otherwise why do the deal. The only reason the SP isn’t higher today is because a couple of over leveraged Hedge funds in the US have rattled markets. This is so obviously undervalued it’s ridiculous, great buying opportunity at the moment for those with an outlook more than a few weeks.
KZA Price at posting:
$1.52 Sentiment: Buy Disclosure: Held
