A New Way to Trade the Chinese Economy
12/22/2010 12:01 am EST
Traders still looking for opportunities to bet on the Chinese economy-especially construction in that country-have a new way to do so. Ossen Innovation Co. (OSN) has begun trading on the Nasdaq stock market.
According to an October 8 report by the Chinese Academy of Social Sciences, they are among the top five producers of pre-stressed concrete as measured by annual output in the People's Republic of China. OSN's products are used in the construction of bridges, highways, and other infrastructure projects within China.
Ossen plans to sell five million American depositary shares between $5.00 and $6.00. The company had originally planned to offer at least seven million shares between $7.00 and $9.00, but slashed the range and float size due to weak demand.
OSN has stated that they will use the proceeds to pay off construction costs related to expanding a facility and invest in new production lines. For the first half of 2010, Ossen's profit more than tripled to $7.2 million, and revenue increased 45% year over year to $58.7 million.
By the way, be sure to check out their Web site here. It's worth noting that product information is sparse, and their investor relations page could use a serious overhaul.
Ossen Innovation Co. Limited themselves visited the Nasdaq Market site in New York City's Times Square yesterday to celebrate their initial public offering. Dr. Liang Tang, chairman of the board, rang the closing bell.
Update: OSN prices five million shares at $4.50, below the expected range.By Josh Golebieski of PortfolioTilt.com