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No. of Recommendations: 6
I don't know the mentality of the foreign investors making the take private offer. It's not unusual in the USA for an initial bid to be raised. I found it interesting that the 6.60 bid is exactly 75% of the base conversion price, 8.80 (subject to adjustments) of the MS preferred stock deal of last year. YONG seems to be on track to meet the income targets in the agreement. If they were willing to "pay" 8.80 last year, they may have decided to float a trial balloon of 75% of what they would be willing to pay if their offer meets resistance. Also by raising their bid later, it would allow the board committee and their law firm to claim they fought for the best deal possible rather than rolling over, making everyone happy except for us shareholders that think the company is worth much more. At this point, it appears that the aversion to China small caps won't go away soon, so maybe I should be relieved to pocket more than the market was willing to pay yesterday.

I think it would be prudent to continue to hold the stock to see what develops even if the market price goes up to 6.60 in the immediate future.
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