The day after I blogged about bailing on Chinese fertilizer company Yongye International (Ticker: YONG) over nagging concerns about cooked books, the stock is up a whopping 42 percent.
That's no error. A 42-percent move.
I'd have egg on my face if it weren't for the reason behind the stock's sudden surge.
Simply put, Yongye has taken a number of steps to help restore investor confidence.
You can read about them in more detail in a nicely written Motley Fool piece here.
In short, Yongye made three key moves:
- It's CEO announced plans to invest $3 million of his own money in company stock.
- It put Morgan Stanley on its board of directors, giving a Western firm some oversight of its operations.
- It convinced Morgan Stanley to buy a big share in the company.
You probably figure this has me wishing I'd held on to those YONG shares I owned as well.
Not so much. At least not yet.
There's still a dark cloud of suspicion hanging over these Chinese firms listed on American exchanges, and Yongye is going to have to prove itself worthy of my hard-earned dollars again.
Tuesday's news is a good sign. But's it may be a while before I'm ready to dip my toes back into Chinese waters.
What do you think? Is this enough for you to consider buying YONG? If you own it, how much better does this make you feel?