Recent Investment in Jinko Power a Long Term Positive for JKS
On July 30th, JinkoSolar (NYSE:JKS) announced that China Development Bank International ("CDBI"), the Macquarie Greater China Infrastructure Fund ("MGCIF"), and New Horizon Capital ("New Horizon") had agreed to invest $225mm in Jinko Power, the company's downstream solar project development subsidiary. Following the investment and subsequent capital contribution by JKS to Jinko Power, the three investors will own a combined 45% equity stake in Jinko Power. Unfortunately for JKS shareholders, this transaction received a rather lukewarm response from the market. The stock traded relatively flat on the day of the announcement and has declined 10% overall since July 30th.
This lukewarm response was most likely due to the...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|