China Yida Holdings (CNYD)

[temp luvs amy]

It does seem like a good company and the low price is, in reality, based on a single factor: No record of sustainable profitability to base a higher price upon. In more colorful terms: It's off the radar. Many money managers won't look at it until IYSA can get above the subsistance level, and the increase in price will be substantial when/if they start looking.

Right now, it is depressed because IYSA apparently lost a significant revenue stream that could have helped them reach profitability sooner. The next few quarters could make or break it. The revenues need to be replaced so IYSA can return to running their infrastructure at a higher capacity to offset all expenses. Growth in revenues needs to resume. Shrinkage in revenues could be devastating as expenses might start eating away the gains of the last two years. It is a very critical time. If revenues cannot be grown, then management must quickly implement further cost cutting initiatives or secure funding which could carry great cost to the longer term investors. It's time like these that put long term shareholders at the greatest risk of dilution.

OTOH, the current price makes it a strong acquistion target for another company, and the price could increase much too fast to catch when an offer is made. The lost revenues could actually be viewed as a catalyst for strategic action by convincing large holders to reduce their long term targets sufficiently to allow the takeover.