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
RDI Initiates Coverage on:
China Auto Logistics
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 Companyâs 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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