Jinpan International Ltd (JST-Q)

(Top Pick Mar 1/16, Up 6.64%) It was taken over at $6. It is a beauty. 55% gain in 6 months. It was a sweet deal. He knew a takeover was in progress.

(Top Pick Oct 27/15, Up 55.91%) A Chinese company that does transformers and resins. The company was taken out.

(A Top Pick Sept 18/15. Up 57.98%.) This got taken over at $6 in April.

Had a takeover offer by management in September at $4.50 when the stock was trading at $3.86. It was a good arbitrage play. The takeover offer has gone up to $6, and he thinks management will take it over. Dividend yield of 0.54%.

This is a Chinese company in the electrical field. They sell in China, they sell in Europe, they sell in the US. Have been around for a long time. Revenues recently went up 20%. They pay a dividend. Owners own about 15%. He had bought this is an arbitrage play. Management put in an offer to Buy it out at $4.50. Anybody thinking this works automatically, it doesn’t. A year ago they put in an offer to Buy at $18.80, but it fell apart and the stock price went way down. Thinks this offer has a better chance of going through, for potential quick gain. Even if it doesn’t, he is happy to own the company. It sells at about a 3^rd of BV. It is profitable on a regular basis.

This is an arbitrage play. There is a takeover bid by the head honcho at $4.50. Also, did a takeover bid last fall at $8.80, which fell off the rails. The risk is that this one could too. If it did, this is a stock that would fit into his portfolio under normal circumstances. Dividend yield of 0.78%.