(*Disclosure: I am short.)
Hollysys is a Chinese company that designs high-tech stuff. Interestingly enough, they were able to grow revenues, profits, and operating cash flow without having to increase capex. See the chart on the left from page 31 from the latest investor presentation:
Here’s a list of ideas I’ve talked about on this blog that could be relevant today.
(This blog post only explains very minor red flags. I think I see much bigger red flags with Hollysys but I will not explain them. This will be a lower quality post compared to other posts on this blog.)
According to HOLI’s SEC filings, it owns Bond M&E and CE Concord. Hollysys decided to buy one of these companies and then the other. Here’s Google street view showing their neighboring offices:
