TTT + KWG = KHD

I woke up this morning to find that KHD had disappeared from all my stock screens. On Monday it had closed at 14.90, on Tuesday 14.05 and then today... *poof*. I did see in my Fidelity account an equal number of shares of TTT replacing the KHD. It opened at a much lower price: $12.60. was I out $1.40 a share? Well, the good news is that despite the low open, it closed at $13.15. But I decided to do a little sleuthing to see what else I could find. Here are the particulars:

First Tranche Summary and Time Line

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Receive one (1) KID share for every three and half (3½) KHD shares (calculated after a 2 for 1 forward split, subject to KID shareholder approval).

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Additional distributions of KID shares expected by the end of the year.

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Initial percentage of KID shares distributed 26%

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Shareholders meeting date for approval March 29, 2010

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Ex- dividend date March 30, 2010

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Distribution date of shares March 31, 2010

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Listing date for KID shares on the Frankfurt Stock Exchange March 31, 2010

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Stock Symbol KWG.F

So suppose you had 1,000 shares on Monday, worth $14,900. Today you would have 1,000 shares of the new stock, TTT (worth 13,150) and (if I understand it correctly, 1 share of KWG.F for every 7 shares I had of KHD. So that works out to about 280 shares of KWG.F. That trades on the Frankfurt exchange, though they have promised an ADR that trades on US exchanges. They closed at 5.45 euros per share or about $7.35. That works out to about $2,050. If I understand everything correctly, I am actually better off than Monday (not that I had the 1,00 shares) at $15,200 vs the 14,900.

There are still a couple points I do not understand. It mentions an ex dividend date of March 30th. What dividend are they talking about? Is that a stock dividend, getting the KWG? Is there an actual dividend, which might explain the 90 cent drop on Tuesday? I dunno.

The second point, which I find intriguing is that they expect additional distributions of KID (KWG) before the end of the year. Additional sounds good! Anyway, I am not sure how I will work all this complexity into my MFI worksheets... I suspect at the least KHD will turn into TTT. And I will need to add in the KWG part. I am excited by the split and plan to hold all my shares firmly. Not sure if it'll renew for me as "mfi"... but that is only bookkeeping.

Then two quickies: QKLS (I know I said quickie!) announced they will be taking another two weeks to report earnings. It is their first time, so I assume they forgot to dot an i, but it may impact the stock tomorrow (QKL Stores Inc. Postpones Earnings Release Date for Fourth Quarter and Full Year 2009 Financial Results).

Then SHE had an extremely bullish report (granted by someone who owns the stock) which I found hopeful (Shedding Light on SHE: China Watch). I will try and be disciplined and not back up the truck.

Oh two more as long as I am on China. UTA gave bullish updated guidance (Universal Travel Group Completes Previously Announced Acquisitions and Updates Guidance) this is one cheap stock. And then LIWA had a most excellent quarter and says 2010 will be 40% better (Lihua International Reports Fourth Quarter and Full-Year 2009 Financial Results). At some point this stock will begin appearing on the screens.

Here is my estimate of LIWA stats:

		liwa
+	Operating Income After Depreciation	30.52
-	Minority Interest - Income Account	-
=	Income for Calculation	30.52
	Diluted Shares Outstanding	23.792
	Share Price	9.18
+	Market Cap Calc	218.41
+	Preferred Capital	-
+	Debt in Current Liabilities	4.39
+	Long-Term Debt	-
	Cash and Short-Term Investments	34.00
-	Excess Cash	34.00
=	Enterprise Value	188.80
+	Property Plant and Equipment - Net	16.85
+	Receivables	7.92
+	Inventories	12.68
+	Other Current Assests	0.18
+	Working Cash	-
-	Accounts Payable	5.25
-	Current Liabilities - Other	0.78
=	Invested Capital	31.61
	Earnings Yield	16%
	ROIC	97%