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No. of Recommendations: 6
Nothing too exiting to report from the call. The Q&A started with a couple questions about the go-private to which they replied that they could not comment on anything regarding the offer, including possible timing. One shareholder didn't so much ask a question as used the opportunity to comment how unfair the offer price is.

Subsequent questions got pretty generic typical answers. I asked about whether the increased deposits were an indication that they are gearing up for big new product sales in Q1 but Sam replied simply that it was a move to lock in supply of materials. I also asked about the goodwill writeoff and he commented that it had a lot to do with the low stock price through Sept 30th. It is not unusual to factor in the stock price to your Step 1 impairment test, but given how out of whack the stock price has been with any other valuation metric, I would have hoped they would have allocated a very small percentage to it. Apparently not, I would now guess they probably allocated something like 50/50 to the stock price and the DCF. That could be consistent with prior year's analysis, but we'll never know for sure.

I agree that they probably moved forward any expense and non-expense spending they could into Q3 to help support a low value of the company. The inventory, deposits, and selling expenses really jump out at me as areas where they likely did this.

It's safe to say that 2013 numbers and comps should really look amazing given these factors as well as the revenue recognition impact. It would be great to be an owner of YONG at that time.

That sure would be great...
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