The gigantic investment manager Wellington Management has made some pretty hefty bets on a number of Chinese stocks that are now halted or delisted. The firm built an 8.2% stake in China-Biotics, the yogurt-culture company in Shanghai, despite the fact that China-Biotics had spent the previous year defending itself against report after report by short-sellers and the Chinese media alleging that the company isn't what it says it is. The Nasdaq exchange halted trading in China-Biotics last week after it failed to meet the deadline for filing a 10-K report with the SEC. But it doesn't stop there for poor Wellington, a spokesman for which declined to comment. The firm holds 5% of Jiangbo Pharmaceuticals ( JGBO), whose shares have been halted since May 31; 3.7% of Yuhe International ( YUII), a provider of "day-old chickens" whose shares were halted on June 17; and 2.2% of Puda Coal ( PUDA), whose shares were halted on April 11. Wellington also recently unloaded an 800,000-share position in China Electric Motor ( CELM), a company whose auditor resigned after finding alleged irregularities. CELM was delisted by Nasdaq earlier this month.
Shares of China-biotics (Nasdaq:CHBT) were gapping down Thursday morning with an open price 11.6% lower than Wednesday's closing price. The stock closed at $2.85 yesterday and opened today's trading at $2.52.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $3.20 as of 3:50 p.m. ET, 21.2% above Friday's closing price of $2.64. Volume is at 140,599, 0.2 times the daily average of 776,600.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $2.55 as of 12:09 p.m. ET, 21.7% above Tuesday's closing price of $2.10. Volume is at 145,817, 0.2 times the daily average of 776,600.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $2.08 as of 2:25 p.m. ET, 22.4% above Wednesday's closing price of $1.70. Volume is at 550,020, 0.7 times the daily average of 776,600.