Replies to post #859 on YaSheng Group (HERB)

[RealDutch]

A summary would be nice.

Well, I can give you my ratings for HERB which will give you a quick overview. 7.5 = buy

Valuation = 11.1
Growth = 8
Risk = 7.5
Adaptability = 8
Priority = 11
Reliability earnings = 9

Overall score = 8.83 (Very close to SIAF = 8.87)

Usually a score of 10 would be max. Priority = 11 though because of the potential merger which could create value for shareholders very fast.

Besides the fruit and vegetables, I like a couple of projects. Hemp, Angel dust, Cattle. I don't care about the rest. Neither do I know much about it because I do selective DD mostly.

Usually I wouldn't invest more than 10% here. But it seems obvious now that Gansu Yasheng (with a listing in Shanghai) is managed by the same bunch, which reduces risk. I also had to upgrade the stock because of the potential merger, which shows they can adapt.

What's not to like here from a risk/reward perspective?
But that's just my opinion.