Home Inns (HMIN) falls 16% on no news

September 28, 2011

Interesting – it appears that confidence has just suddenly been lost in this fast growth China ADR. The Company had a Corporate Day with Goldman Sachs on September 7th. The analyst sponsoring the event was Jason Kwok, and it was reported that management has been seeing 5% room rate hikes and saw no signs of a slowdown in volume trends. GS pointed out that in the worst quarter of the financial crisis portfolio occupancy stood at 90%, with only an 8% RevPar decline. We aren’t in an environment anywhere near that.

It’s worth noting that Home Inns actually had an IPO here in the US with CSFB as the lead. You can get the prospectus on the IR website. The stock didn’t list through a reverse merger. The auditor is Price Waterhouse Coopers

Today the implied volatility on the NASDAQ listed stock surged to 105%. Historical implied vol has been 50%. Volume was 1,863,137 shares vs average volume of 549,419 (3.4x normal).

It bears watching here if there is any news tomorrow.

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