Hitachi Construction Machinery Deal To Change "Parent" - There's Not Much There There
Event-Driven
258 Views, 16 Jan 2022 23:11
EXECUTIVE SUMMARY
On Thursday we saw news of a Hitachi sale of half its stake in HCM. Friday the stock traded down hard. Friday night saw news that underwhelmed further.
The deal is big, but it is basically a deal to get Hitachi out as parent. There is no Capital Alliance and there is no Strategic Alliance yet.
There simply is not much there, there yet. And the stock is less liquid than it looks, and that won't get better any time soon.