So PetroChina (NYSE:PTR) went public in Shanghai to great fanfare and now the company has a market-cap of over $1 trillion. This gives the company a valuation greater than that of both General Electric (NYSE: GE) and Exxon Mobil (NYSE: XOM) combined. Not bad considering the company has revenues of just 1/4 that of Exxon. With all due respect to the growth of the Chinese economy, this is a bit ridiculous. Can we even believe the numbers they are reporting? We all talk about the lack of transparency in U.S. corporate earnings (see financial stocks of late); it's 100 times worse in China.

The Chinese stock market has had an amazing run, but what comes up must come down. With all the recent IPO's that have skyrocketed, it sure has the feel of NASDAQ 2000 all over again. Then people used to invest if the ticker symbol had 4 letters. Now people will throw money at anything that has to do with China. Irrational exuberance? You bet!

Will the communist government of China allow the stock market to fall before the 2008 Olympics in Beijing? Probably not, but a bubble has been created and investors should better be forewarned.

Continue reading China and Bazooka Joe: Two bubbles about to burst

China and Bazooka Joe: Two bubbles about to burst originally appeared on BloggingStocks on Tue, 06 Nov 2007 15:15:00 EST. Please see our terms for use of feeds.

Bazooka Joe is the next Mickey Mouse? Is Michael Eisner serious? originally appeared on BloggingStocks on Mon, 05 Nov 2007 16:45:00 EST. Please see our terms for use of feeds.

You might not have traded the stock, but you certainly traded its products. Topps Co. (NASDAQ: TOPP), maker of baseball cards and Bazooka bubble gum, announced on March 6 that it has agreed to be acquired for $385.4 million by the Tornante Company, headed by former Disney CEO Michael Eisner. Private equity investment firm Madison Dearborn Partners will also join in the purchase if the deal is approved by Topps' shareholders.

And that's when the bubble burst. The deal calls for Topps shareholders to receive $9.75 per share in cash. The problem is that the stock is currently trading above that amount. Topps stock closed at $9.89 on March 8, down $.05. The stock has generally been trading right around $10 per share since the start of 2007. So why agree to sell at below market rate? That is precisely the question asked by Arnaud Ajdler, one of Topps' own board members. Investment firm owns 6.6% of Topps' shares. It, too, is opposing the bid, calling the offer an "undervaluation." Ajdler has also asked the bid to be rejected because it did not follow proper procedures.

Topps board of directors, minus Mr. Ajdler, is in favor of the deal and is recommending shareholders accept the offer. The deal is not dependent on securing any funding. Eisner's Tornante Company would like to have the deal close sometime during 3Q 2007. Topps has a 40 day window during which it intends to solicit additional offers. Perhaps Mr. Ajdler can put together a better offer for shareholders.

Bazooka's bubble bursts originally appeared on BloggingStocks on Fri, 09 Mar 2007 09:36:00 EST. Please see our terms for use of feeds.