Yangtze River Port and Logistics Ltd (NASDAQ: YRIV) is climbing in the market today, up as much as 19.77%. While the company hasn’t issued any press releases, an SEC filing shows that the CEO of the company is loading up on shares.
I’ve followed YRIV for some time now and have stated in the past that I believe that the stock is undervalued. My opinion seems to be validated as the CEO of the company is putting more skin in the game. Moreover, with recent Trade War news, the potential for growth here is only getting larger. Let’s dive in:
YRIV CEO Is Snapping Up Shares
As mentioned above, the big story that seems to be driving the price movement in Yangtze River Port and Logistics has to do with the CEO purchasing shares. The moves were disclosed via an SEC filing issued on April 23, 2019.
According to the filing, Liu XiangYao, CEO at YRIV, purchased 2,825 shares of the stock with an average price of $1.05 per share on Thursday. Then, on Monday, Mr. XiangYao purchased another 280,000 shares with an average price of $1.081 per share. All in all, the CEO of the company expanded his holdings by more than a quarter million dollars.
Today, Mr. Liu owns 622,260 shares of YRIV. It’s also worth mentioning that he is also the indirect owner of 91.2 million shares of the company. These shares are indirectly held through Jasper Lake Holdings.
This is great news for shareholders. As Mr. XiangYao continues to snap of shares of the company is leads, he is showing that he is of the strong opinion that the work that his team is doing will yield returns for investors. After all, why throw another quarter million dollars in the pot if, as the CEO of the company, you didn’t expect it to grow?
All in all, the purchase of shares is a sign that positive news is on the horizons for Yangtze River Port and Logistics shareholders.
Trade War News Likely Helps The Run
Aside from the insider buying that is leading the charge in today’s run, there’s also some Trade War news that could be helping to boost the value of the stock. Let’s not forget, the Trade War between the United States and China seems to be turning a corner.
As a result, many are expecting that the trade war will come to an end relatively soon, leading to a boost in the Chinese economy. Of course, with YRIV being a Chinese company, and one that’s profits are correlated with economic conditions, an end to the Trade War would be great for the company.
With that said, it was recently announced that representatives from the United States will be headed to China to continue negotiations. In fact, Trade Rep. Robert Lighthizer and Trade Secretary Steve Mnuchin will be headed for Beijing shortly. Negotiations are expected to take place on April 30, 2019.
Any positive update surrounding the potential end of the trade war could lead to tremendous gains for YRIV.
Did Someone Say, Undervalued?
Recently, Yangtze River Port and Logistics was the target of a short report that made various allegations. Unfortunately, the report led to dramatic declines in the value of the stock.
In multiple press releases, defending itself from what it called a misleading report and filing a legal claim against those involved. The company’s defense was cut and dry, and upon further research, pans out to be accurate.
However, the stock has yet to recover from this report. Considering this, I believe that YRIV stock remains significantly undervalued and provides plenty of upside potential.
The signs are all over the place. Unfortunately, Yangtze River Port and Logistics has yet to recover from the short report waged back in December. Nonetheless, this is creating an opportunity.
With the stock significantly undervalued, the CEO is putting more of his own skin into the game. At the same time, Trade War news suggests that we could see a positive update on that front relatively soon while the stock is grabbing the attention of the investing community.
All things considered, I believe that YRIV represents a compelling investment opportunity that should not be ignored.
What Do You Think?
Where do you think YRIV is headed moving forward? Join the discussion in the comments below!