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Chinese forest products firm Orient Paper (ONP +6.4%) gets a boost from the announcement that...

Chinese forest products firm Orient Paper (ONP +6.4%) gets a boost from the announcement that its Chairman and CEO Zhenyong Liu intends to purchase up to $400K worth of stock over the next three months. The purchase looks to be quite a bargain, considering the stock has has lost 65% of its value over the past year.
Comments (2)
  • Jake Huneycutt
    , contributor
    Comments (1360) | Send Message
     
    I'm a bit skeptical. Why would a CEO announce that they were 'going to purchase shares because they are undervalued' in a public press release? Why not simply purchase the shares and report it to the SEC? If it were truly undervalued, wouldn't you want to gobble up as many shares as possible before the market could react? I also don't think this press release makes the CEO obligated to purchase the shares.
    19 Sep 2011, 01:28 PM Reply Like
  • stever10
    , contributor
    Comments (104) | Send Message
     
    I believe that the chairman is correct in his evaluation that ONP is greatly undervalued. Especially now that the new 360,000 ton corrugating plant is coming online and will begin actual production next month.
    21 Sep 2011, 10:01 AM Reply Like
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