Boston, MA 03/06/2014 (wallstreetpr) – Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) has been up and up in the past week and the same gain is being continued this week. Nobody knows for sure when dust will eventually settle on this stock rally. Yet the upcoming earnings date (March 12) could have some direction-change in the manner the stock is traded.
Hopefully, if the earnings turn out to be what is expected or better yet exceed expectation, things can only get better. However, a turn to the south can set in if investors are dissatisfied by what the China-headquartered Internet services company reports.
In the last trading session, shares of Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) were see changing hands between $24.90 and $27.99. Eventually the shares traded at $25.55 by bell time, noting more than 1.4 percent gain. The Wednesday trading was characterized with high volume trading and even a new 12-month high price level was established at $27.00.
What could be powering the stock?
There have been recently a few interesting news around Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) and investors have seemingly taken notice of the same.
Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) which currently boasts $597.97 million market cap announced a “memorandum of understanding” between it and Server Farm Realty. The companies believe that their joining of forces will enable them to benefit from helping multinational businesses to host their cloud-based services in China. Remember, this move will be expanding CCIH’s aspiration in becoming the leader in developing data centers for other companies in China.
Yet other news that seems to have been taken well by traders is the announced private placement. The company said it had signed an agreement with some institutional investors for $55 million investment in its stock. That transaction is expected to close before the end of this March.
Shares repurchase
Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) announced that it expects to use the proceeds from the stock offering to fund its capital expenditures and also repurchase some of its shares from existing stockholders. Thus, by most measures, Chinacache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) has left no doubt that it is after maximizing value for its shareholders.
