YaSheng Group (HERB)

[RealDutch]

HERB overview

The Bull Case

- Assets valued at $2.3 billion by 2 appraisal firms
- 2016 net income $1/share (estimate appraisal firm)
- Guaranteed free cash flow from 5 high value plantations until 2039
- Reduced complexity may speed up spin-off or listing in China
- Hemp (export), Infant Formula (import) and US mining investments a bonus
- Float approximately 15M shares
- No VIE

The Bear Case

- Reverse Merger (2004)
- Pink sheet stock with no active market makers
- Lack of communication
- Websites not up to date
- Dividend unlikely because parent owns 90%
- Return on new investments uncertain