9.07.2009

Only the weak fear the bear

Currently investors are facing a bear market, i.e. stocks are on the downturn and investors are being cautious. Yet this isn't necessarily a bad thing - while hard times on the market means many companies are merging with each other, striking deals for survival, it simultaneously presents investment opportunities that wouldn't normally arise under the status quo. One such oppurtunity is a company I've been monitoring - Yasheng Eco Trade Corp. NYSE: YASH, Yasheng Eco Trade specializes "on the acquisition, exploration, and development of undervalued assets. The company is focused on financial services, mergers and acquisitions, accounting, real estate development, and natural resources exploration." Sounds promising enough, yet the interesting part is that this company has just made a move to buy another company - diluting their stock pool, thus lowering the IPO of their common stock. Here's a 6 month chart on their stock prices:













Currently YASH's stocks are @ .10 a share...that's right - only 10 cents. Yasheng recently acquired several other companies, resulting in this swift drop in their share pricing. But if we look back a year, let's see what YASH's IPO used to be >













Yep - over $100 a share. So while a bear market means most companies are on the decline, it also can open up a great opportunity to invest (at least for those who enjoy taking risks)

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