Thursday, 21 May 2015

Synergy between car parts and mining? (2)

Bursa queried China Automotive Parts (CAP) about Siburan acquiring a stake in CAP, the company answered here and corrected one answer here.

The company had to admit that CAP had actually nothing to do with the deal and that thus no synergies should be expected:

Good from Bursa to get some clarity in this matter. It might have poured some (much needed) cold water on the share price of CAP which was 10% down today.

The results of Siburan were also mentioned, not impressive to say the least, but quite normal for those junior Australian mining companies. They are definitely not intended for orphans or widows.

CAP also announced its quarterly result, profit was down 44% on 37% lower revenue.

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