Soros Dumps CNinsure

George Soros sold 640,650 shares if CNinsure (NASDAQ: CISG) during the first quarter. The stock still makes up one of his largest holdings in his Quantum Fund China fund CNinsure, although this marked the time since the first quarter of 2010 that Soros was a seller and not a buyer of the stock.

The Chinese insurance company announced a private buyout offer of $19 per share on May 16. With the announcement, shares skyrocketed over 31% to $17.32, however shares have been slowing declining and finished the trading day at $15.50, a 10.5% decrease from the May 16 high.

Speculation over the drop in share price is related to the uncertainty over whether or not the private buyout offering will go through. Last year, Harbin Electric, another Chinese company, announced a private buyout offer of $24, however investors are still stuck with their shares as the buyout has yet to come to fruition.

In December, OLP Global's Adele Mao questioned CNinsure's practices regarding its equity incentive plan, “CISG may have understated commission expenses and overstated net income by a meaningful amount.”

CNinsure's first quarter net income increased over 23% to $12.2 million, but not surprisingly, investors have not been impressed to move the stock price higher, as its current price reflects a buyout premium over 22.5%.