I entered my position in China Energy Corp. at the end of March with the expectation of making a low risk 8% return in a couple of months. The completion of the going private transaction is going slower than expected, but the transaction seems to be on track. The company filed a form 15-12G last week terminating the registration of the shares with the SEC while the reverse stock split was executed more than a month ago. So the going private transaction at $0.14/share is at this point in time really a done deal, but the shares are still trading unchanged around $0.13/share.
The fact that the shares are still trading after the reverse stock split was effectuated more than a month ago is normal I think for these kind of transactions. I owned a few shares of AssuranceAmerica in the beginning of this year. In this case the reverse split was effectuated on March 11, the form 15-12G was filed on March 26, the shares stopped trading almost a month later on April 16 and the money hit my account on May 10. If China Energy Corp. would follow a similar timeline you are looking at a ~6.5% return in ~six weeks time. That’s pretty attractive if you ask me, so I decided to buy a few more shares today.
Long China Energy Corp.