By: Matt Rego
Sharp Corporation (OTC Pink: SHCAY) engages in the manufacturing and sale of consumer electronics, electronic communications, equipment, and various other electronic-based solutions for business, energy, government, etc. The Japan-based Sharp Corporation (OTC Pink: SHCAY) has seen shares soaring lately, up nearly 60% in the past week. During the early trading session on Wednesday, August 17, 2016, Sharp Corporation (OTC Pink: SHCAY) saw shares rally another 12%, on heavy volume. Over the past three months, the Japanese electronics company has seen average daily volume of around 103,491 shares. However, nearly 190,000 shares of dollar volume of $264,100 have already exchanged hands during the early trading session.
Sharp Corporation (OTC Pink: SHCAY) has been rallying strong over the past week, after the company was able to get Chinese antitrust authorities to drop claims against Foxconn’s 289 billion Yen rescue package and effective large stake in Sharp Corporation. Sharp Corporation (OTC Pink: SHCAY) also received good news that the company is being considered for an addition into MSCI indices. This will help Sharp Corporation (OTC Pink: SHCAY) attract greater shareholder attention from institutional investors.
Despite gains resurgence, Sharp Corporation (OTC Pink: SHCAY) still has a ways to go before retouching its highs that were set in 2014. There are very limited details right now as to the plans that Foxconn has to rebuild Sharp Corporation (OTC Pink: SHCAY). However, Japan-based Sharp Corporation (OTC Pink: SHCAY) stands to make a big splash with institutional investors, if the company can be added to the MSCI indices.
Here is a quick Reuters article on the recent Foxconn antitrust issue resolution:
“Taiwan’s Foxconn said on Thursday China’s anti-monopoly authorities approved its acquisition of Japan’s Sharp Corp, paving the way for the world’s largest contract electronics manufacturer to seal a $3.8 billion deal.”
“With all necessary regulatory reviews complete, Foxconn and Sharp “will now move to complete the transaction in accordance with our agreement as soon as possible,” the Taiwanese company said in a statement.”
“Seeking control of Sharp’s advanced panel technology and to strengthen its position with major client Apple Inc, Foxconn, formally known as Hon Hai Precision Industry Co, plans to spend 388.8 billion yen ($3.84 billion) to take a two-thirds stake in Sharp.”
“Foxconn was unable to complete the acquisition in June as planned due to the prolonged Chinese antitrust review, raising fears among investors that the deal might fail and sending Sharp shares briefly below the planned acquisition price of 88 yen.”