Question Kirk

[DOGS THAT BARK]

Had china stock I couldn't buy here and had brother-in-law in china buy it for me on Hong Kong exchange--just saw this on stock and can't figure if it's good news or bad--any thoughts--

-CHINA SP STEEL - Suspension of Trading

At the request of China Special Steel Holdings Company Limited (the
"Company"), trading in its shares has been suspended with effect from
2:30 p.m. today (16/2/2007) pending an announcement in respect of a very
substantial acquisition involving the issue of new shares of the Company.

 

[selkirk]

DTB do not follow in China Steel however the merger game is on in this sector.

the number of companies will decrease by about 30% if not more in a period of 5 years. maybe sooner.

ie. in Canada Dofassco was taken over, then the company that bought Dofassco was bought up. the Dofassco deal was worth $5.6 billion.

Harris Steel got taken over by Nucor for 1.25 billion.

Algoma now over $60 is going to be taken over by German company Salzgitter for around 1.6 billion. by the way was going to buy it for $8 years back 4pe. and cash on hand I waited and bought it for 42. still a good gain. just which acted sooner.

Ipsco is going to be taken over by a number of companies, and the stock has shot up from low 100s well 115cdn. to 129 cdn. on specualation, about 5.9 billion. strong play on steel pipe. great company own a small positon and have sold puts at 90. mentioned this company in MR. GIC thought it was a great company just getting close to fully valued.....of coarse that means it goes up another 30%....lol


anyways it looks like China Steel will do what the others will do and take over smaller companies around the world and in areas where they are not strong. in the world there will only be a handfull of strong players. the race is on, it will probably not be the last purchase they make.

as for how the stock reacts that is anyones guess, as long as they explain the deal hopefully the stock does not get beaten down may even go up, though ussually it puts a cap on the stock, a major equity (bought deal).

there will be more mergers in the steel sector, also in the mining and oil/gas sector.
in oil and gas TLM, NXY, are always rumoured along with half a dozen others.

HBM may go in mining, and FNX. on Toronto.

thanks
selkrik

 

[DOGS THAT BARK]

Thanks Kirk--I forgot to mention this company only $2 stock--so might be company being bought out.