Fushi Copperweld, Inc. (NASDAQ:FSIN.DL)

TSIF (99.96) Submitted: 6/30/2012 6:59:20 PM : Start Price: $8.11 FSIN.DL Score: -10.18

Fushi Copperweld, Inc. (FSIN) started a serious upward trend in share price on high volume and the spike continued until it looked well overdone. I did wonder about a posible leak or insider buying in advance of a take private offer, but I discarded it due to valuation, especially after share price shot by $8. Fushi Copperweld has indeed had a take private offer similar to Harbinger which caught downthumbing fools off guard. Interesting the offer appears to be for $9.50 per share, but the market only ran the share price up to about $8.70, meaning there is some doubt as to it's validity as there was with Harbinger the first time. I might get out of my call if the S&P drifts upward while this is going on and as investors who rode this one up lock their current profit and drift elsewhere.

If I was not active in this call I would not thumb Fushi Copperweld up or down. While there is a reasonable delta and gain to be had upside from $8.70 to $9.50 the timeframe or the buyers ability to get financing could make this one dead money for a time and it could drop rapidly if things go south.