Universal Travel Group lost ground after Bronte Capital's John Hempton wrote on his blog that the Chinese company may be committing fraud. Hempton is short the stock and would benefit from a decline in the share price.
"The online booking engine is dysfunctional -- and the massive margins that it claims (84 percent for plane tickets) are thus also dubious," Hempton wrote on his blog.
Shares of Universal Travel, which trades on the New York Stock Exchange, dropped by $1.23, or 25.8%, to $3.54. Volume topped 3.58 million shares, compared to the average daily share volume of 329,000.Elsewhere, Level 3 Communications (LVLT) retraced some of the previous session's decline, rising by 8 cents, or 8.4%, to $1.03. Volume topped 77.1 million shares, compared to the average daily share volume of 11.2 million. Level 3 shares fell Tuesday after the company first announced an offering of convertible senior notes. On Wednesday, Level 3 said it will sell $175 million in 6.5% convertible senior notes due 2016. The notes will be convertible into common stock at an initial conversion price of $1.235 per share China Cord Blood (CO - Get Report) was also on the rise, climbing by 64 cents, or 16%, to $4.64 after the company said its board of directors has authorized a $15 million share repurchase program. "Our board of directors approved this share repurchase program to demonstrate our strong confidence in the Company's long term growth potential," Ting Zheng, chairwoman and CEO of China Cord Blood, said in a statement. Volume topped 34,000 shares, compared to the average daily share volume of 18,000. On the other hand, Duoyuan Printing (DYP) shares continued to plummet, falling by 54 cents, or 17.6%, to $2.53 on Wednesday, bringing its total loss this week to more than 60%. Volume topped 3.8 million shares, compared to the average daily share volume of 468,000. On Monday, Duoyuan Printing's chairman said the company's CEO and CFO were being replaced, and the Deloitte Touche Tohmatsu had been dismissed as auditor. The announcement stoked fears of an accounting scandal at the Chinese printing equipment company. -- Written by Robert Holmes in Boston.
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