YaSheng Group (HERB)

[RealDutch]

The warning is quite irrelevant. The stop sign and the warning is standard for companies who haven't filed for 6 months. And we all know they haven't. There is another warning (or there was) because market makers are not actively making a market here. Oh well. We are trading at a P/E of 0.3.

The story here is cash flow. More specifically, cash on hand. Should be going from $180M to $300M by the end of the year.

It's a bet, not an investment. What are they planning to do? Well, I think there is only one thing left for them to do. And that is, buy out the minority shareholders. IOW, go private.

They already have the cash. So that's a positive. They should be able to pay us $5/share. After all, it was appraised at $15. There's roughly 20M shares they have to buy.

Now we need a little bit of luck. Perhaps the bank in China is causing problems. Due to strict capital controls. Although it shouldn't be a problem if they go private. So we wait...