Sector Update: Tech


Technology stocks were narrowly higher just before the close with shares of technology companies in the S&P 500 rising less than 0.1%.

In company news, China BAK Battery ( CBAK ) shares tumbled Monday after the maker of lithium-ion rechargable batteries late last week said its Shenzhen BAK subisidiary defaulted on nearly $84 million in loans, losing its ownership stake in its BAK International unit.

According to a regulatory filing with U.S. authorities shortly after last Thursday's early close, CBAK said it borrowed RMB520M, or about $83.8 million, from Jinghui Wang in December 2013, in part, using all of its equity interest in BAK International to secure that loan.

Wang on June 30 delivered notice to CBAK it had defaulted on the loan and that foreclosed and sold the BAK International equity stake to an unidentified third party for around $84 million.

Following the foreclosure, CBAK said it still owns a pair of Chinese subsidiaries, Dalian BAK Trading Co. Ltd. and Dalian BAK Power Battery Co. Ltd, the latter of which is developing, manufacturing and selling new energy high-power batteries used in electric cars and other high power applications.

CBAK shares were down over 16% at $3.39 apiece late in Monday's session, or less than 20 cents its intra-day low. The stock has a 52-week range of $1.11 to $5.00 a share, rising 164% over the past 12 months.

In other sector news,

(+) CAMT, Shares climb as much as 44% after the optical-inspection company announces the launch of its next-generation semiconductor inspection and metrology platform, already receiving orders from several device manufacturers.

(-) GTAT, Reduced to Neutral from Buy at UBS, with analyst Stephen Chin writing GTAT could still hit the midpoint of its $600 mln to $800 mln sales guidance although "our checks of a slower ramp in 2Q14 makes the high end more challenging."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: CBAK

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