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Breaking News: CSKI to sell 7 of 8 products from warning

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February 23, 2010 – Comments (4) | RELATED TICKERS: CSKI

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#1) On February 23, 2010 at 2:27 PM, FleaBagger (29.47) wrote:

Disclaimer: I am short CSKI puts and I own shares.

Here's the link to where China Sky One Medical (CSKI) announced their compliance with Chinese labeling requirements:

http://www.prnewswire.com/news-releases/china-sky-one-medical-confirms-continued-sale-of-seven-of-eight-products-on-the-ministry-of-healths-warning-list-85059622.html

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#2) On February 23, 2010 at 2:50 PM, FleaBagger (29.47) wrote:

For those of you who hadn't followed the drama, CSKI is a medical device manufacturer in China, and Ultralong had been on record as saying that they were undervalued by about $9 at $16 a share. (That is, they were worth $25, and would provide a ~55% return + earnings growth as it rises to "fair value.") Well, the shares went from about $16 to about $24 and back to about $18, and, having slept through its rise to $24, I had been holding the shares the whole time.

Then the news broke over the weekend that 8 of CSKI's products were mislabeled for sale in China, and various government agencies had issued warnings about them. Again, I slept through that, too. Monday, as investors were trying to figure out what that meant, shares leisurely drifted down to about $14.50 from about $18 on Friday.

Today the company issued an announcement that they are, with the approval of the government, revising the labeling and continuing to sell 7 of the 8 products about which the government had issued its warning, and shares jumped to $16.87, but were undercut by limit sell orders, as volume sextupled its monthly average. So basically, I think shares still look undervalued, but do your own due diligence.

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#3) On February 25, 2010 at 12:06 AM, jaccuse6 (< 20) wrote:

Awesome DD. It's giving investors(like me) who missed the parade on this one, a second chance to get in cheap.

 

My due diligence here says your long on this one?

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#4) On February 25, 2010 at 12:51 AM, FleaBagger (29.47) wrote:

I am long CSKI, via shares and negative quantities of puts.

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