the day before yesterday. There are 20 security cameras already in place and management is awaiting government approval for a live feed. They don't think it's a big issue and their relationship with the government is excellent, especially since LPH sells fuel to the military. He said that after speaking to Fidelity at the recent Roth conference, they added to their position. It's almost a certainty that we'll see the 3rd facility acquisition (non-dilutive) news before the end of LPH's fiscal year, or no later than the end of June. EPS will then rise from .62 to about $1.23
Actually most people thought the Chinese subsidiaries of Big 4 auditors were credible. Now they know they were sadly mistaken.
Why would you take the risk? Why not hire a credible U.S. based auditor?
A Chinese auditor using a Big 4 auditor's name is not close to being the equivalent of a major U.S. based auditor.
I certainly would prefer LPH switch to a major U.S. based auditor but given the choice of their current auditor and a Chinese auditor using a Big 4 name I would stay with their current auditor.
I doubt if many think the situation is static. I for one think the situation is rapidly changing but still not enough for me. I sure wouldn't want to be long LFT through the change.
The Big 4 Chinese subsidiaries won't really be credible until they get inspections and oversight like U.S. auditors get from the PCAOB.
It's quite possible we will soon get people in Congress pressuring the major exchanges to limit their listings to companies that are inspected by the PCAOB. I sure would like to see that happen.
Also understand I am long LPH and if LPH is stupid enough to hire a Big 4 Chinese subsidiary that will be fodder for the shorts to attack the Company.
38-minutes? Oh come ON, chickenhats. Everyone knows there's a twenty-minute limit on the pay phone use in each medium-security block. The guards tazer anyone that get a little yacky and forget the time. Toups would be crying like a little girl after the first 20K volts. And you don't want do *anything* like a little girl in lockup. It would... um, draw an unusual amout of interest from certain types.
Also forgot to mention that Toups stated pre-audit work on the 10-K has begun fwiw. I commented to Toups that hiring a Big 4 auditor wasn't that important in my eyes, especially with KPMG signing off on CBEH and then pulling their opinion after CBEH was totally busted in that 44-page hit piece. I liked Toups' response in saying they wanted a Big 4 regardless, as LPH has their sights set on becoming a Tier 1 company. This 3rd facility acquisition without dilution will quiet many critics and certainly prove the company has the cash they say they do.
There really are only 3 issues here.
1) Are the numbers real? Web cams will help on the sales/activity side. Top 4 auditor will focus attention on the financials. The additional facility of this size will be a very strong indicator also, especially with the obvious involvement of the PRC.
2) Do shareholders own the assets as listed? Not really sure what is required to take this to the "beyond all reasonable doubt" level, but Kevin Chen seems to feel that it would not be difficult for the company to publish something that would erase this as an "unknown". Although Toups did state on the last CC that the assets are owned by LPH and the BVI registered company that is trading on AMEX.
3) Will positive recognition of all the above be enough to lift LPH pps out of the powerful anti-China/RTO sentiment? That's the $8 question.
It's good to hear that there will be multiple cameras. Funding the 3rd facility without dilution will be huge. Nobody is going to let the stock get to 3 until after the closing of the deal. At some point the stock low price pressure valve is going to burst and LPH share price is going to explode upward.