megiddo666

China Water & Drink Favors Institutional Investors

Why this article came back up on Oct. 31 a day after the Hekmann deal closed is erroneous. The Goldman PIPE was done in January.

China Water & Drink Favors Institutional Investors

This is one way to see it. Another way is that Goldman, etc. Are going to make a ton of money. There will be share dilution at some point, which will create additional trading liquidity and possibly drop the price. However, there is much to the story untold above.

The current PE is only 24x earnings, the company is opening a huge production expansion in 2Q 08. Additionally, its nine months performance and business outlook, even without expansion via acquistion is strong. If any share dilution takes place, if acquisitions are accretive in 08. It seems good news. Also the Chinese govt. has already said it is restricting capital inflows and Chinese bank lending in 08 to cool the economy. As one holding CWDK shares, I am not particularly concerned about the share price or the deal...However someone wanting to get in at a lower entry price might have reason to question this deal.