Guanwei Recycling is China's largest manufacturer of recycled low density polyethylene (LDPE). Adhering to the highest "green" standards, it has generated rapid growth producing LDPE from plastic waste procured mostly in Europe for sales to more than 300 customers (including over 150 active recurring customers) in more than ten different industries in China. The company is one of the few plastic recyclers in China that has been issued a Compliance Certificate by Umweltagentur Erftstadt, which issues certificates of approval for certain plastics manufacturers which meet strict environmental standards in Germany. This enables the company to procure high quality plastic waste directly from Germany and other European countries (Spain and Holland) with no middlemen, and permits highly economic production of the highest grades of LDPE.
This stock has come under pressure because of some negative Sharesleuth articles. Management of the company has being FOOLED by American stock promoters. But it seems that investors think the company was wrong. At the current bankruptcy price of $1.50 you get the company almost for free, P/E even below 2. I personally think the management is getting bored of the depressed stock price and will initiate a "going private" proposal soon enough
It's true that this company is legitimate. German government officials have even visited Guanwei before they issued a Compliance Certificate. If you read the transcript of the conference call on Seeking Alpha, you will see that the company needs the cash on their balance sheet as working capital. So basically they don't have the money to give a dividend or to do a share buy back.