Yongye: Red Flags
I've now read every 10-Q and 10-K Yongye has released since it became a public company, along with talking to their CFO, and I am still baffled as to how large segments of the company operate. Hopefully the company will disclose more information (paricularly what it is required to by SEC regulations) and clear up the confusion about apparent conflicts of interest, insufficient employees, and wildly fluctuating sales.
Yongye's Recent Filings Raise Various Red Flags
By Ian Bezek
Investors in Yongye International (YONG) initially cheered the company's 4th quarter results released last week. The company beat expectations on revenues and earnings, and the stock initially traded higher. However, Yongye shares soon reversed, closing last week sharply lower despite the upbeat earnings announcement. Why the dour mood?
Behind the pleasing top-line results lurk several significant problems that raise red flags about the company's operations and profitability. The first of these issues is a seemingly impossible figure reported in Yongye's 10-k released last week: