The surplus iron ore is a result of the steel industry buying foreign ore instead of domestic ore. But that surplus can still be sold off to other countries, such as India. It might just take a bit longer to get rid of the surplus.
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Well the steel industry made more than what it can sell and multiple sources say it is only going to get worse. If there is also a surplus in iron ore that is not related to the steel industry, then that problem of moving materials that make up steel is that much more difficult. Which is what I addressed.
Up until a few years ago, the company was known as the Shandong Hongda Technology Co., and dealt mainly in chemicals. For whatever reason, they took the company a different direction. This might be another one of those moments where they are looking to switch industries. Or they might just be purchasing the company as a cash flow.
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Fair enough. After all a company doesn't usually just buy another company for no reason. It's optimistic. I wouldn't bet on this being the intent, but I'm also a pessimist.
Plus I should look into the technology one.
We don't know what their current liabilities or revenue is, as the 2015 reports are not out yet. They will be submitted on March 26th.
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I was responding to your comment about how revenue was enough to cover liabilities.
And I swear I'm not going to let her know all the pain I have known
17-Mar-2016 20:42:02