YaSheng Group (HERB)

[snow]

RD I see that you have chosen to follow this stock closely. You are correct. Revenues were symbolic in both the second and third quarter. My impression is that management has no good understanding of attitudes in Arab countries. There is a joint venture with a big native company in the Emirates. Trust means a lot in these countries and it takes time to build it. Things have moved very slowly this year. It is the partner in the Emirates that decides the pace. Based on past experience it now looks uncertain when the pace will really pick up. It may happen within some months or it may take longer. But I take it that rational behavior will win the day after some time. But so far I have been way too optimistic in assuming that growth would be very fast thiis year because the effects of the liquid have proved extremely good in a substantial number of pilots.