Today's Research Reports on Stocks to Watch: China Auto Logistics and iQIYI

ACCESSWIRE - finance.yahoo.com Posted 1 year ago

NEW YORK, NY / ACCESSWIRE / July 17, 2018 / Both China Auto Logistics and iQIYI saw their shares gain in Monday's session, and also gave half the gains back in after-hours trading.

RDI Initiates Coverage on:

China Auto Logistics Inc.
https://www.rdinvesting.com/report/?ticker=CALI

iQIYI, Inc.
https://www.rdinvesting.com/report/?ticker=IQ

China Auto Logistics Inc. shares closed up 5.33% yesterday but gave back more than half of those gains in after-hours trading. The stock soared as Barna Capital acquired additional 5.5% in the Chinese auto logistics provider and intends to push for its privatization. After this transaction, Barna Capital now holds 25% stake in the top seller in China of luxury imported automobiles and a leading provider of auto-related services. Barna Capital wants to be actively involved in Company's operations by taking a seat on the company's board. Barna intends to push China Auto to either pay dividends or repurchase stocks as the Company’s NAV (Net asset value) is higher than the market cap. Its "ultimate goal," Barna Capital stated, "is to have management either take the company private or sell the company altogether." China Auto has been under investigation for related party transaction, and therefore has neither released its financial statement for the past two quarters, nor its annual report for 2017. This delay has resulted in the company's non-compliance with Nasdaq's continued listing requirements. It was last month that the Company announced that it had submitted a plan to Nasdaq detailing how the Company plans to regain compliance with Nasdaq's continued listing requirements. If the plan is rejected, China Auto Logistics will be able to appeal the decision to a Nasdaq Hearings Panel. It was at the end of last month that Pawar Law Group announced that a class action lawsuit has been filed on behalf of shareholders who purchased shares of China Auto Logistics Inc. According to the press release, the lawsuit says that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) China Auto failed to maintain adequate internal controls over identifying and reporting certain relationships and related transactions; and (2) as a result, defendants' public statements were materially false and misleading at all relevant times. The company faces several lawsuits from different firms.

Access RDI's China Auto Logistics Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=CALI

iQIYI, Inc. shares closed up 8.78% yesterday with 4.63% of those gains given back in after-hours trading. The stock saw gains of nearly 14% last week as Chinese stocks bounced back after President Trump tariff related worries concerned investors in the last month. It was also reported recently that the company was being named as one of China's New Economy Top 20 Brands at Economic View's New Economy Forum, the financial media division of China News Services. The company would also then be added to China's Fortune China 500 list. The company, with its subsidiaries, provides online entertainment services under the iQIYI brand name in China. It operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also operates movie theaters in China.

Access RDI's iQIYI, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=IQ

Our Actionable Research on China Auto Logistics Inc. (NASDAQ: CALI) and iQIYI, Inc. (NASDAQ: IQ) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com