NEW YORK (TheStreet) -- Fuwei Films (FFHL) popped more than 15% to a high of $2.04 as of 1:22 p.m. on Monday. The company announced on Friday the identity of the previously unidentified bidder that had successfully reached an agreement to acquire 52.9% of the company's outstanding shares at approximately $2.40 a share.
The company revealed Shandong SNTON Optical Materials Technology as the successful bidder in the fifth public auction of Fuwei's outstanding shares on March 25. The Weifang State-owned Assets Operation Administration Company, a wholly-owned subsidiary of Weifang State-owned Asset Management and Supervision Committee, is the controlling shareholder in Fuwei Films and had sought to sell the 52.9% share.
TheStreet Ratings team rates FUWEI FILMS HOLDINGS CO as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FUWEI FILMS HOLDINGS CO (FFHL) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: