Friday, February 1, 2008

APWR! As advertised!!

AstroPower(APWR 17.75 +3.31) formerly Chardan South received a letter of intent (LOI) for 380 wind turbines at $3 million apiece, or a bit more than a billion dollars. Here's where I advertised the warrants, which closed today at 12.75 (APWRW +3.35), back when it was known as Chardan South:

..Chardan South with common and warrants at 5 (CSCA and CSCAW 5.38).CSCA is a SPAC that signed a deal to acquire Head Dragon, the owner of a controlling interest in GaoKe, the largest private Chinese engineering company for 13 million shares of stock. CSCA brings $32 million in cash and a publicly trading vehicle to the table, while GaoKe brings expertise in power generation and micro power networks, and $54 million in revenue for the last three months with $6 million in net income. If the deal closes, in the next couple of months as expected, it could rock....

And my blip on the stock on a few days later on October 10th:

And when you re-read that, you should read the September 7th SEC filing on CSCA, and the information on Liaoning GaoKe Energy Group of which CSCA is acquiring.Upon completion of a successful merger, I think CSCA could have a two handle. The warrants, CSCAW, with a strike price of 5, could be worth three times their current price. However, the merger must go through, or you'll be left holding the bag, as CSCA is a SPAC (Specified Purpose Acquisition Company), and you'll be left with $5 of cash, and worthless warrants on a failed deal. The merger is supposed to close this quarter; so it's a stock that's worth watching the news for.

The merger closed on January 24, and the stock closed today at $17.75! As advertised! You get your two handle Monday!

No comments: