With YONG recently providing guidance of 50% revenue growth each year for the next three years, people got excited, but to me, the most impressive guidance was the increase in profit margins. Chinese small-caps are finally starting to see much better valuations and these valuations are quickly heading to valuations in line with the S&P, currently 20 or so which is expensive for the S&P. I think it's safe to at least assign a forward P/E of 20 for YONG which would value the stock at no less than $20.00, but with EPS of .37 last quarter and with recent guidance, I think it's safe to say that the stock is headed to $40.00 and in the meantime, my goal will be to flip YONG as many times as I can in between, no different than what I did with RINO.
