Langlui's Big Board and Options Plays

[Norwegie]

YONG

taken from another board. no link

YONG Yongye Intl. tgt raised to $12 at Rodman & Renshaw following news of preferential tax status (8.79 +0.03) -Update-

Rodman & Renshaw raises their YONG tgt to $12 from $10 following the announcement of the co's preferential tax status. The firm notes that YONG received government approval to a preferential corporate income tax rate of 15% for the FY09 and FY10. The firm explains that since the Co has been accruing its income tax expenses at a tax rate of 25% for the first 9 mln of FY09 but will actually pay full year tax expenses at a 15% rate, YONG is anticipating to record a $3.1 mln tax gain in Q4. The firm notes that the preferential tax status is in addition to the VAT exemption which YONG received in 2008 and translates to a gain of ~$0.10 per fully diluted share basis as of the end of FY09.