A stock that was trading at a fine $1.50 in April of 2014 now sits at $0.60. I have been watching Asian Bamboo for a good 6 months now. The reason why I believe Asian Bamboo crashed was because of the Hong Kong mess. First came the democracy incident followed by the mass student protests. Generally any Hong-Kong based or related company with a market cap of under $10 million experienced a drop. The whole protesting mess ended a couple of weeks ago when police decided to move out the final group of protesters. After the protests ended, I felt compelled to buy this stock. I had been watching it for a good 6 months and it had dropped by a significant amount. Then the bad news happened. Asian Bamboo (ETR:5AB) had been dropping quite a bit in the last week or so. I was thinking they were just going through a slight slump. It’s the holiday season and people might be getting lazy. Then the bad news came. Asian Bamboo needs to pay back a US $16 million loan that they took from DEG. This bad news caused Asian Bamboo to drop by 14% on Monday. To top this all off, Asian Bamboo didn’t even open on Tuesday. This is quite horrific for a company that was sitting at about $40 in 2010.
Will Asian Bamboo go bankrupt?
We’ll have to wait and see.
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