Harbin Electric Stock Decline

As the day continues to progress, the stock price of Harbin Electric HRBN fell over $1. Since Thursday morning, the value of Harbin Electric's stock fell from around $17.33 per share to as low as $15.50 per share, a modest fall compared to previous months. On Thursday, the stock price closed at $16.21. Harbin Electric is a manufacturer and distributor of electric motors both internationally and domestically, having their headquarters located in Harbin, China. Although as a corporation aspiring to be a leading figure in pioneering the industrialization and technological advancements of the Chinese manufacturing sector, Harbin Electric has been experiencing a decline in the overall health of the corporation in addition to the volatile stock price. As Benzinga noted on May 26, 2011, Harbin Electric is currently below its 50-day moving average of $18.55, and below its 200-day moving average of $18.54. Earning-per-share for Harbin Electric fell 48.5% from the first quarter of 2010 to the first quarter of 2011, going from $0.66 to $0.34. Revenue had also fallen about $2.4 million in the year over year basis, with gross profit experiencing a decline of 15.5% Last year in October, CEO Tianfu Yang and fellow officers made a proposition to the board of directors in having the company go private, purchasing 18,525,436 shares at about $24 per share, a total value of $444.6 million. Mr. Yang currently owns 31.1% of the common stock for the corporation, and seeks to close out the rest with financing from a combination of debt and equity capital. The Financial Investigator finds a proposal to be worthless, and notes that Mr. Yang has avoided making an offer. As Harbin Capital stock faces much volatility, the corporation has their eyes set on privatizing, removing themselves from the public's view.