Kirin International Holding Inc (OTCMKTS:KIRI) Climbs Dangerously High
It seems there’s no stopping Kirin International Holding Inc (OTCMKTS:KIRI) on its march up the charts. Yesterday the stock trampled through the four-dollar barrier and closed at $4.25 per share on volume that remained well above the average, at 513 million shares changing hands. The reason for this massive run, sadly, remains a mystery.
The stock has been accumulating greater daily volumes for over a week now, for no apparent reason. There are no new filings coming from KIRI, nor any recent press releases that could have triggered this surge in investor attention. The latest quarterly report from the company covers the three months ended June 2015 and contain the following:
- $10.4 million in cash
- $359 million in total assets
- $36.3 million in quarterly revenues
- $4.3 million in quarterly net income
Those more cautious among traders might take these numbers with a grain of salt, as KIRI is an entity conducting its operations in China and based in Beijing.
The last time KIRI did cause a bit of a stir with its press releases was back in early September. The company announced signing a memorandum of understanding for the acquisition of 100% interest in a company that runs a logistics center on China’s longest river – the Yangtze. The Wuhan Yangtze River New Port Logistics Co – the acquisition target under the MOU – is valued at $1.66 billion by an “independent valuation”. This means that KIRI plans to issue 166 million shares, that will for some reason be priced at $10 each, to acquire it. KIRI had 20 million outstanding shares as of the date of its latest quarterly.
After yesterday’s dizzying close of over four dollars per share, KIRI also managed to become overbought. Time will tell whether a 110% climb within the space of six sessions is sustainable in the absence of any real news.
