Top 92%
No doubt that a lot of you have seen the spike in stock price. Here is the mystery behind the numbers.
Cash Technologies, Inc. (AMEX:TQ) announced today that its CPI Holdings, LLC subsidiary has completed its acquisition of certain assets of Champion Parts, Inc. from PNC Business Credit, Inc. for $2.97 million which have a book value of approximately $12.1 million. Champion was the leading remanufacturer of automotive fuel system components in the U.S. before its bankruptcy in October 2007. The purchase of the Champion Assets will permit CPI to create a new business using the venerable Champion name, products, staff, facilities and national retail distribution network without assuming any liabilities of the bankrupt entity.
Needless to say, that for a company that was worth less than $5MM in market cap before the acquisition, this is a big move forward. The company now has a book value to support a higher valuation.
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Top 4%
Kohalza
May 07 at 2:32 ET
I don't usually buy into such small companies - don't like the risk involved. I did however, not miss the unusual spike in share price and the reason for it and so took a gamble on this one. Hope it pays off.
Top 1%
guliamo
May 08 at 5:25 ET
I'm not sure i follow.. if these guys are in the business of repurchasing cash assets from bankrupt entities, they now taking over a brand name? are they re structuring their business?