YaSheng Group (HERB)

[RealDutch]

The asset swap is mostly about cash flow. If you look at 2012, 2013 and 2014 then most of the earnings went to inventory, account receivables and investments in wind break trees, irrigation etc.

Not this time. When the swap is final in november they will have more than $100M in cash on the balance sheet instantaneously. Because they are making close to $150M per year on the new assets. Or twice the market cap.

Cash flow. No doubt they will use it to ramp up Angel Star. The bad news is, we may lose Hemp altogether. The new website suggests we won't though. Let's see what happens. It's not that important.