Since the beginning of October and up to last Monday YaSheng Group (OTC:YHGG) stock had lost half of its value. Then, when the company finally filed with a delay its quarter report the share price fell even further down, which did not look at first sight like a justified reaction. 
YHGG has been in a downtrend for the past 52 weeks, but last week it landed at a new yearly bottom. On Friday, the share price fell to $0.77 – the new 52-week low – and then the stock closed the session at $0.82. That represents only a 1.87% decline, though the total loss for the last two trading sessions is much more dramatic as on Wednesday YHGG was still worth $1 per share.
The strong for this stock volume of 71,900 traded shares on Friday suggest that the YHGG could fall down again soon. At the same time, OTC Markets page says that no firm is making a market for the stock and the given prices represents unsolicited customer orders. That means that investors willing to sell their shares may not be able to do so in the near future.
As mentioned, last Monday YaSheng Group quarter report for the period ended September 2011 appeared in the SEC filings. The delay had been expected, but the information in it does not suggest that such negative market response is deserved.
YaSheng Group produces and sells agricultural goods like field crops, vegetables, fruit trees and others, as well as livestock and poultry. It looks like the problem is that the company’s operations are mainly conducted in China, although YHGG claims to have also an international distribution channel. Otherwise, the numbers show improvement in sales, operating profit and net income. In addition, YHGG reports working capital surplus of over $152 million and stockholders’ equity of $1.9 Billion.
