Hong Yuan Holding Group (HGYN)

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SA article - July 2012

Companies such as Wal-Mart (WMT) and Carrefour (CRRFY.PK) might be interested in the acquisition of this company due to the new laws of sustainability of plastic bags.

In times of crisis many companies are looking for opportunities in the market. Multinationals are seeking to expand their businesses and promote their balance sheets. The low volume of business in the stock markets as well as the volatility offer attractive rates and undervalued companies at current prices.

In this article, I will analyze three companies from different sectors that offer an investment opportunity. Their products can be very attractive for any company that wants to position itself in U.S. markets.

1. Cereplast (CERP) is engaged in the development and marketing of compostable, renewable, ecologically substitutes for petroleum-based plastics. The company was founded in 1996.

Cereplast product portfolio currently consists of two top quality range of products:

- Cereplast compostable resins are made of renewable resources and are ecologically sound substitutes for fossil fuel-based plastics, replacing nearly 100% of the petroleum-based additives used in traditional plastics.

- Cereplast sustainable resins replace up to 90% of the petroleum content used in traditional plastics.

The company acquired a production plant in Italy in October 2011.

Companies such as Wal-Mart (WMT) and Carrefour (CRRFY.PK) might be interested in the acquisition of this company due to the new laws of sustainability of plastic bags.