In a relatively short period of time, Hollysys (HOLI) has transitioned from an erratic and enigmatic play on Chinese industrial and rail automation to a rancorous soap opera worthy of a telenovela. Whether any of this benefits shareholders remains to be seen, as the proposed buyout is still short of what this company could be worth with more consistent execution.
Hollysys has been gaining share in the Chinese process automation market and has at least a credible chance of organically growing/expanding into the discrete automation market as well. The rail business is a harder call, but is at least still in the game. Whether there will be steady management and improved transparency, such that institutional interest improves remains to be seen. There is significant potential undervaluation here, but whether or not the stock can ever fulfill that potential is still very much in doubt.
I also want to note that while I have spelled Hollysys as “HollySys” in the past, I have changed to confirm to the format used in recent company communications.
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Hollysys Offering Automation Potential And A Boardroom Soap Opera
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