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Motley Fool Global Gains / GGS: Yongye International


Subject:  Re: Why no longer Best Buy considering major dro Date:  4/14/2011  1:32 PM
Author:  TMFMmbop Number:  1644 of 4235

I would like an explanation from Tim on why YONG was dropped from best buy list. Is it because there are better stock opportunities or is Tim getting cold feet from all the manic sentiment?

I knew there would some questions about this, which is why -- as kidchicago pointed out -- I tried to address it specifically in the issue.

My thinking was that if something is a Best Buy Now then it represents an opportunity to get a stock at a compelling price that offers some near-term capital appreciation potential. With the recent drop across several of our stocks, I thought that potential existed more at this month's 5 companies rather than at YONG, CGA, or WWIN. The reason is that it could take a lot of time for the market to come back to these stocks even if the businesses keep performing. Further, my impression from this board is that people who own these stocks, already own them in decent magnitudes and know the score, so I wanted to make sure other ideas are getting out there.

But the BBNs are not a perfect science. These stocks are still Buys and are trading at hefty discounts to my value estimate. The squishiness is just around the "Now" aspect.

I hope that's helpful.

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