Traders Position In UCBH Holdings (UCBH) In Anticipation of Event

Shares of UCBH Holdings Inc. (Nasdaq: UCBH) have been flying over the past few sessions on reports from Bloomberg that 9.6% holder China Minsheng will increase its stake in the San Francisco-based bank to at least 50%.

A company spokesperson called the reports speculation and would not comment further, although he did note that in July the company and China Minsheng agreed to extend their investment agreement until December 31, 2009, which would allow Minsheng to potentially increase its investment up to 20%.

While the company isn't talking, the stock is. Shares continue to rise as trades believe that something is in fact in the works. They will likely be right. Will it be 20% or 50%?, remains the question. Also, how much of this is priced in with the recent rise?

Shares of UCBH Holdings are up 16% today after rising 76% yesterday.

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