Fushi Copperweld, Inc. (NASDAQ:FSIN) – $11.50 Management Buyout Proposal

FSIN - chart" src="http://stock-tipper.com/wp-content/uploads/2011/05/FSIN01.png" alt="" width="481" height="279" />

FSIN - Google Finance" href="http://www.google.com/finance?q=NASDAQ:FSIN">Fushi Copperweld, Inc. FSIN staged a 19% gain yesterday, closing at $7.07. This came  after the company provided an update on a proposed $11.50 offer from management to take the company private. In the update the company reported that a special committee, set up to consider the proposal, has negotiated and executed confidentiality and standstill agreements with each of Mr. Fu and Abax.

The update also stated that other proposals will be sought, including any alternative bid that the committee may receive.

This update seems to have been the driver for yesterday's 19% rally. From a technical perspective, this gain has provided a bullish reversal signal, which is shown in the updated chart above.

A long lower wick was left on the prior day's candle after lows of $5.21 were made. That day, the stock closed at $5.93 and yesterday, trading opened at $6.03 and rallied strong from there on.

There should be further gains in the near future based on the strong reversal pattern.

Please do your own due diligence.