Thursday, July 17, 2014 5:15:29 PM
I was initially attracted to the stock based on Graham's formula [current assets - total liabilities > market cap], which by my math says the stock should still at least double to switch the inequality.
As of March 31, current assets 450,328,000 - 63,745,000 = 386,583,000 , which dwarfs the market cap of 176,810,000. I view it as cheap for any stock price under $2.49.
(that would be a market cap of 386.583 million / 155.10 million shares out = $2.49 per share).
The Main risks I associate with HERB are the following (you are prob. aware of a lot of these):
- Tax issues could lead to delisting from US exchange: as a us listed ADR, by GAAP and SEC, US auditors are supposed to come into China once a year to audit the financials but the CHinese gov has prevented this from happening. There are risks/worries that this will lead to a delisting of CHinese ADRS. ALso the financials could be cooked
- Chinese gov owns the land, yasheng leases it essentially. these land laws are 30-70yr contracts and are paid up front in cash. they do not disclose when these contracts need to be renewed - directly effect balance sheet
- Liquidity (obviously)
- Core competencies : Honestly wtf are they doing buyin gmines in africa IMO, expensive and huge risk
I have a small position and am considering raising it if we can mantain $1+pps for some time
Recent HERB News
- Form C-AR - Annual Report • Edgar (US Regulatory) • 02/26/2024 01:00:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/12/2024 08:51:30 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/14/2023 07:00:08 PM
FEATURED NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM