Savvy Trades and Investments

[abh3vt]

YRD (last trade: 2.77) Can I interest anyone in a Chinese fintech that is perhaps one of the cheapest stocks trading on the market that isn't a pink sheeter?
https://ir.yirendai.com/news-releases/news-release-details/yiren-digital-reports-third-quarter-2023-financial-results

YRD YTD EPS: 2.31 (on track to earning 3.15+) <1x PE
Book value (mostly cash): 11.57/ADS
Diversified biz: Loans/Insurance/E-Commerce
Pretax margins: 54%
Cash flow from operations: 240MM USD (YTD thru 9 mos)

It has run up a bit from a week ago, when it was trading in the low 2s. Very low float here as the CEO and hedge fund partner hold about 80% of the stock through the founder's company (CreditEase). And there are accounting concerns from a couple of years ago when they failed to file their annual report on time because their auditor then would not sign off on the related party deal that effectively merged CreditEase into YRD.

Stock should at least be 2x higher, and even at that higher price level it trades at <50% of the valuations afforded other Chinese fintechs like FINV or QFIN. Another one to watch is XYF that is similar to YRD in valuation yet has been aggressively repurchasing its own shares and paid a special dividend this year.

The extreme low valuations have been there for years, but its extremely compressed at the moment. The company should go private or seek a buyout from a larger competitor to maximize shareholder value. The market for stocks like this (small cap Chinese) is completely broken.