YaSheng Group (HERB)

[RealDutch]

I mean what the f is in It to the company to split the company then the to merge them again several years again?

It's not a secret that every Chinese company wants to list in Hong Kong, or Shanghai, or Shenzhen, given the valuations over there. Problem is, it will take years. And may not be in line with the strategic plan.

HERB needs cash to grow. They can't get any now.
What they can do, with little effort, is merge HERB with Gansu Yasheng and boost the value of the company.

It's what everyone wants... and you are asking why they should do that? I mean, WTF? You get a P/E of 60+ for free Or do you think that the value of Gansu Yasheng (listed in Shanghai) will suddenly collapse when they add $112M in profits to the bottom line?

But even if this merger doesn't take place, the important thing here is, it's the same people who are running the show over there (resulting in a P/E of 100+) and with HERB (P/E < 1).
I mean, are you kidding me? If you are looking for validation then you have just find it. Either that, or Gansu Yasheng is a scam (too). Check out the BOD. They all used to work for Gansu Yasheng, or Yasheng Reclamation Group, or whatever they call it. It's all the same stuff. They even carry the same logo. As is the case for the parent company, Gansu Yasheng Salt Group.
So that was the main reason or one of the reasons for my upgrade.

Enough is enough. If you still can't see the value then I give up.