Friday, February 14, 2014

"Suntech Provides Update with Respect to NYSE Appeal" $STPFQ

Update:

GEORGE TOWN, Cayman Islands, Feb. 14, 2014 /PRNewswire/ -- Suntech Power Holdings Co., Ltd. (STPFQ) (the "Company" or "Suntech") today announced that the NYSE's Committee for Review has upheld a decision previously made by NYSE Regulation, Inc. to commence delisting proceedings of the Company's American Depositary Shares. The Company expects a Form 25 (Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act of 1934) will be filed shortly with the U.S. Securities and Exchange Commission to delist the Company's American Depositary Shares.

As previously announced, trading of the Company's American Depositary Shares has been suspended by the NYSE since November 11, 2013. Quotations of the Company's American Depositary Shares have been, and the Company expects will continue to be, available on the OTC market under the symbol "STPFQ".

21 comments:

CP said...

Bond block traded at 10 cents.

Stagflationary Mark said...

CP,

At some point, if you keep posting information about Suntech, I'm going to start to think that Suntech has not been a great investment. That's the risk you are running here. I hope you realize that.

This flies in the face of logic and common sense! Suntech's got both "sun" and "tech" right in the name? And it's a Chinese company too? Why even bother to read the prospectus? How could I lose? Hahaha! ;)

Gallows humor.

In all seriousness, I'm somewhat reminded of a quote from "A Random Walk Down Wall Street" as it relates to the 1960's electronics bubble.

It was called the "tronics boom," since the stock offerings often included some garbled version of the word "electronics" in their title even if the companies had nothing to do with the electronics industry. Buyers of these issues didn't really care what these companies made - so long as it sounded electronic, with a suggestion of the esoteric. For example, American Music Guild, whose business consisted entirely of the door-to-door sale of phonograph records and players, changed its name to Space-Tone before "going public." The shares were sold at 2, and within a few weeks rose to 14.

And then there's this additional gem:

For example, many of the prospectuses of the period contained the following type of warning in bold letters on the cover.

WARNING: THIS COMPANY HAS NO ASSETS OR EARNINGS AND WILL BE UNABLE TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE. THE SHARES ARE HIGHLY RISKY.


Behold the power of a solid disclaimer to stop the euphoria! Not! ;)

CP said...

Mark,

On a plane ride today, a real estate agent told me that we are not in a housing bubble, prices are going to keep going up, AND interest rates are going up soon.

Hmmm.

CP

Stagflationary Mark said...

CP,

A real estate agent told you that real estate is a bargain? Shocking! ;)

When interest rates are falling, real estate is a bargain! You can keep refinancing to lower your monthly payments! Your house therefore keeps getting more and more affordable!

When interest rates are rising, real estate is a bargain! You need to buy now and lock in your payments as soon as possible! The longer you procrastinate, the higher your payments will be!

I think you can see that as long as interest rates moving up or down, real estate is a bargain at any price!

Just keeping my employment options open in case the National Association of Realtors needs another chief economist, lol. ;)

Stagflationary Mark said...

I think you can see that as long as interest rates ARE moving up or down, real estate is a bargain at any price!

The "are" was in my head but the fingers refused to cooperate. (I'm using a PS3 game controller to type this and it tends to require extra concentration.)

Stagflationary Mark said...

For what it is worth, I went "all in" on my bearish case for China today.

China's Growth Story: Running on Vapor (Musical Tribute)

CP said...

Conventional wisdom:

No matter what happens in the economy, interest rates will go up, but it will be good for stocks and real estate.

Stagflationary Mark said...

CP,

More conventional wisdom:

1. Stocks and real estate will go up because stocks and real estate have generally only gone up since the early 1980s. Up is up! Must continue! There has to be a reason I own so many long-term stocks!

2. Interest rates will go up because interest rates have generally only gone down since the early 1980s. Up is down! Musn't continue! There has to be a reason I own so few long-term bonds!

Consistent wisdom! Can't see any holes in the logic. ;)

CP said...

It goes to show you how ebullient the mood still is.

A stream of guaranteed cash promises is viewed as more risky than the smaller hoped-for (not promised) payments from owning the S&P 500.

Stagflationary Mark said...

CP,

A stream of guaranteed cash promises is viewed as more risky than the smaller hoped-for (not promised) payments from owning the S&P 500.

Yes! Exactly!

Should real GDP growth continue to fall over the long-term (and I have little reason to suspect that it won't, as seen in the charts of my following post), then locking in a long-term real yield did and does make sense to me. TIPS and I-Bonds lock. S&P 500 does not lock (you are only as good as recent performance and expected future performance).

Real Yields: Why They Are Falling (Musical Tribute)

The following chart shows real GDP.

Four exponential trend lines and their growth rates have been added.

Note that each time an exponential trend fails, it is replaced with an exponential trend of lesser quality. What doesn't kill us, doesn't make us stronger. Go figure.

CP said...

People are so used to unanticipated upside that they don't give much thought to unanticipated downside.

Stagflationary Mark said...

CP,

People are so used to unanticipated upside that they don't give much thought to unanticipated downside.

When we're in a contraction, the unanticipated surprise is almost always to the upside.

When we're in an expansion, the unanticipated surprise is almost always to the downside. We have a word for this. It's called recession.
So what's the word for an unanticipated growth surprise to the upside (when already in an expansion)? Does the word exist? Has it ever happened?

We're a full 5 years into this expansion. Cue the magical unicorns and pixie dust. Brace for unanticipated upside surprises, lol. Sigh.

In all seriousness, the expansion cannot continue at its current pace forever, if only because we'll eventually run out of qualified unemployed to put back to work. That's just simple math.

Anonymous said...

STP re-hit it's all time low of 30 cents today. I think the chapter 15 filing will send it into the 20s this week or on Monday.

Anonymous said...

And maybe a new all time closing low.

Anonymous said...

Tick - Tock

In true Suntech fashion, comes down to the wire.

Anonymous said...

The chapter 15 announcement will likely come after hours. It should be a good start to next week. Impatient shorts likely maintain large positions and have liquidity concerns about the average volume drying up.

Anonymous said...

According to pacer.gov, Suntech did not file chapter 15 paperwork in either NY, DE, or CA today (2/21). That means Suntech missed the RSA deadline it agreed to in order for the chapter 7 case to be dismissed in New York. It seems like Suntech does not want to release the financials required and that the chapter 7 proceedings will continue rather swiftly now. The next case hearing will take place at 10am on Tuesday, February 25th.

Anonymous said...

They actually have until midnight, technically, since the BK court is open 24x7. The Chapter 15 filing is required to be in SDNY.

Anonymous said...

Bankrupt Solar-Panel Maker Suntech Seeks Protection in U.S.

http://www.bloomberg.com/news/2014-02-22/bankrupt-solar-panel-maker-suntech-seeks-protection-in-u-s-1-.html

Anonymous said...

There's a 275 page filing on pacer containing the financials.

Anonymous said...

Which exhibit? Are they current financials?