YaSheng Group (HERB)

[RealDutch]

After reviewing the 10-K, here's what I think will happen.

There will be no dividend. No buyout. There probably won't be a spin-off of assets in Shanghai.

I think they will report Q1, Q2 and Q3 in the coming months. The only real kicker could be Q3, where they will report EPS close to $0.30, which is more than the current market cap.

I also think we retained Angel Star. When they get approval to market it in China, they will acquire a majority stake (currently only 50%) and ramp it up quickly. Account Receivables will go up, fast. Meaning, they will need a significant chunk of the free cash flow from the plantations, just for that.

They already invested $20M in US mining rights. There's another $25M coming. Together with Angel Star, they will soon have $100M worth of consolidated assets in the US.

They want a senior listing in the US. No doubt about it. In fact, I think that's why the two directors were fired. Because this whole swap thing was supposed to speed things up, but instead, has slowed it down.

I also think there's a high probability that they will make the same mistake as SIAF and pick Nasdaq instead of NYSE. We have to get it through their thick skull that Nasdaq is a hostile entity, and does not want them. SIAF didn't listen to me three years ago, and shareholders are still paying the price for that today. So this is important.

Other than that, I think we are on our own. The market will have to discover this gem on its own.

Now, we have to figure out a way to convince them to pick NYSE.