Wednesday, November 6, 2013

Funds That Own Suntech Stock $STP

The PowerShares DWA Emerging Markets Momentum Portfolio (PIE) is the largest holder of Suntech stock according to Yahoo's holder list. On September 30, they owned 1,897,919 shares which was just over 1% of the company (and an 0.69% weighting in their fund). This fund is "based on the Dorsey Wright® Emerging Markets Technical Leaders Index" which "includes approximately 100 companies that possess powerful relative strength characteristics and are domiciled in emerging market countries".

The PowerShares Golden Dragon China Portfolio owned 501,394 shares on September 30, which was 0.28% of the company and a 0.26% allocation in their fund.

The SPDR S&P Emerging Markets Small Cap ETF owned 339,515 or 0.19% of the company.

The Market Vectors Solar Energy ETF (KWT) owned 139,861 shares as of yesterday. The index that it follows is a "rules-based, modified-capitalization-weighted, float-adjusted index intended to give investors exposure to the overall performance of the global solar energy industry".

So, together these ETFs own or owned about 2.9 million shares. That's pretty significant.

It's interesting that one is relative strength based and the other was capitalization weighted. Those two investing rules both create positive feedback effects where you buy more as the price goes up.

Every ETF could probably add value in the long run by having a rule to sell or not own a company with defaulted bonds trading at less than 30 cents on the dollar.


Anonymous said...

The reason why STP is hovering around $1.25 is because funds are closing out short positions.

It will drop as soon as it trades via pink sheets.

In addition to etfs, you can wave bye bye to day traders.

Josh said...

I was thinking TAN owned STP but it looks like as of 11/6 it does not. I wonder when they dropped STP out of the portfolio. Also no LDK in there.

Walter said...

TAN dropped STP way back in March.

Walter said...

I believe the stock bottomed within a couple days of TAN dropping them actually.

Anonymous said...

It appears there are valid procedural grounds to dismiss the Chapter 7 suit. Do these outweigh considerations in favor of letting the suit proceed? Or are they sufficient to put an end to the thing?

Should the suit be dismissed, could Suntech withdraw its winding-up petition in the Caymans (thus staying out of bankruptcy)? Pages 10-19 below seem to say "yes."

Anonymous said...

If you bought/acquired/assigned bonds in October, that were in default - bond holders should have been paid on March 31. Knowing that the chances of being paid by the company is zero, filing for an involuntary bankruptcy is a prudent thing to do. The big owners of the bonds are in bed with STP owners in China and are given special treatment and favors. STP was and is a mess and are run by crooks in China. The judge willknow this and more.

Anonymous said...

"The judge will know this and more."

Fair enough, but do the procedural issues override Suntech's unsavory (criminal?) handling of its banktruptcy? What does bankruptcy precedent say?

Anonymous said...

When will the hearing of the provisional liquidation petition in the Grand Cayman court take place?