I am bewildered by the buyin strength & a 4 "bags" gain in the SP for a couple of reasons.
# The 4D was good but not much different from the previous report which showed that RFT is on the road to recovery....In other words it wasn't surprisingly an outstanding one.
# The vast majority (if not all) Chinese controlled outfits trade at a heavy discount....We rarely see them trade at any sort of premium.
# The "Fib effect" or the good doctor's theory doesn't explain it either.
The management are tight lipped as usual ,but there could be major contract wins or alternatively a T/O.
The industry is rather fragmented....A few major players (GE, Siemens ,APC , Emerson , Delta.. etc...) dominate .....Many 2nd tier outfits & numerous runts struggle to gain market share....RFT is among the runts.
A 2nd tier outfit, Norwegian based Eltek, was acquired by Delta Electronics of Taiwan in Dec 2014 for around $500m.
Sichuan Yimikang acquired a couple of small outfits (the names escape me) during the last year & also took a stake in RFT.
Here is an old presentation by Eltek (rather long) that has good info about this industry & its markets.
http://hugin.info/86881/R/1640006/527907.pdf
There seem to be a move to consolidate the sector.....RFT will be an attractive target for Delta Electronics or Yimikang (that may not be content with 17%)
I was itching to sell because RFT is no longer a "dead bargain" ,but I will sit tight to find out what the big fuss is about.
There is something "transformational" afoot with this rectifier.
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