Yuanxi Zhang
Long/short equity, value, special situations

WSP Holdings: The Deal Is Running Out Of Time Again

Recommendation: Short WSP Holdings (NYSE: WH)

Target Price: $1.50 or less


We are highly suspicious if the go-private deal of WSP Holdings (NYSE:WH) will close before the outside date. The company again fails to file the annual report on time this year. Its profitability remains poor. The corruption investigation related to PetroChina could heavily impact the company, which is a possible reason the previous acquirer walked away. Again, the company has run out of time to close the deal. Considering all these factors, we believe a short position is attractive given the favorable risk-reward ratio.

Updates on the Merger

On March 19th, WSP Holdings provided an update on the pending go-private deal. The previous acquirer,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details