There has not been any news coming from or about Kirin International Holding Inc (OTCMKTS:KIRI) since the September PR reporting the memo of understanding to buy the “Wuhan Yangtze River New Port Logistics Co.” It was the last time the company caused a bit of stir in early September. The MoU was signed for the acquisition of a entire stake in a firm that operates a logistics center in the Yangtze.
The Wuhan Yangtze, the target under the MOU is seen at $1.66 billion by an independent valuation. It suggests that Kirin intends to release 166 million shares priced at $10 each, to buy it. Kirin reported twenty million outstanding shares in its latest quarterly report. The stock price jumped 88% after the MOU news was reported. It retreated a week later, but has gained over 170% over last few trading sessions.
Kirin International Holding Inc (OTCMKTS:KIRI) appears to be moving along well and enjoying decent organic growth. However, it is a matter of surprise what made the stock to jump almost 170% in last couple of weeks. The prospect of company releasing 166 million shares when already there are 20 million outstanding shares can hardly be a reason to drive the price up.
The latest financial report from Kirin International Holding Inc (OTCMKTS:KIRI) for the quarter ended June 2015 revealed that the company had cash reserves of over $10 million. The total assets came at $359 million. Kirin reported revenue of $36.3 million at the end of June quarter and net income stood at $4.3 million. Although the financial numbers looks decent particularly considering it is an OTC firm, the traders will take these numbers with caution as Kirin is a firm conducting its business in China with its offices based in Beijing.