Yangtze River Port and Logistics Ltd. work for infrastructural and real estate business in China. The former name of the company was Yangtze River Development Limited and it was changed in Feb 2018. The headquarters of the company is located in New York region and the stock prices are about $0.45 at present.
Lawsuit filing for defendants
The company’s lawsuit in NY Supreme Court was filed against its defendants: Hindenburg Research, ClaritySpring Inc., ClaritySpring Securities LLC, and Nathan Anderson. It was done in response to the market manipulation scheme for misleading and false content being spread about the Company for harming its reputation. This was meant with the aim of making financial gain by showing inferior outlook of the company.
This lawsuit highlighted the Company and it came under the consideration of many investors who got wrong news about YRIV from its defenders. This Lawsuit against the different segments of the company has proceeded in Supreme Court of New York. The Court hearing is now on October 7, 2019 which is an important day for the company.
After the release of the report, the status of YRIV suffered and the market capitalization was reduced by $2 billion which is a huge value. There were huge losses incurred by the shareholders of the company. The management of the Company believes that any decision made by the Supreme Court will not have material adversity for the finances of the company or affect it in any way. The processes will be continued and there will be sustainability in business anticipated from the company’s end.
Insider Actions
The inside news of YRIV is highlighted very often. It is a normal practice to view the company’s insiders (board members) trading in the stocks of the company. In such cases, the insider information is not shared by them under any circumstance. The decisions of the investors shouldn’t be based on the board member activities. The insider transactions are important but to a certain extent. Last year, the company’s Executive Director sold the stocks worth ~ $458K and the analysts took it as a negative point to see the insider selling. The sale was made at a price of $1.14/share which is much higher in comparison to the normal levels.
It is a normal practice of some fundamental analysts to see the number of shares owned by insiders of the company to check the ownership levels. The insiders own about 70 percent of the company stocks which makes it a suggestive stock for some shareholders. The company’s insiders sold stocks in the first quarter of the year and there were no noticeable purchases made. The selling by insiders make the stocks risk-prone and the investors find it chancy. The present stock price is about half a dollar which is quite fascinating for the shareholders but the insider actions are prohibiting some of the investors to invest in YRIV. Wuhan Yangtze River Newport Logistics Co. Limited is the subsidiary of the company through which the trade activities are performed.
