One thing I have never understood about Chinese stock is why they raise capital when they have a ton of cash. CEU raised $17m today (China Education Alliance to sell $17.4M in stock) despite already having $31m in cash on balance sheet. I was not crazy about the dilution. I hope the money is put to good use, though the description was very generic.
I noticed (with a smile) that MHP is already up 10% since being added to my mechanical screen over the weekend. Obviously the biggest impediment to my being successful in MFI investing is myself.
JTX had an interesting run-up yesterday. At one point they were up about 15% (on no news), I think they ended up about 7%.
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I noticed this too, Marsh. Why they need to raise capital makes little sense given their growth rates, cash flow, and cash balance. And generally it makes more sense to issue equity when the stock price is high, not at bargain levels like CEU... Something I'm going to watch closely.
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