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Legitimacy, Chickenhats? You fail to realize that the potential new investors you hope for might possibly be interested in the full details of the acquisition, not simply those that you parrot from Red Chip.
Petroleum distribution is supposedly a bottleneck in China, yet the SOE oil companys seem uninterested in this (currently) highly-profitable sector. Now, why is that? They're not prohibited from distributing. They certainly have the capital and need the money. Why would they avoid such an obvious 'immediately accretive' expansion?
And despite the government encouraging private investment in oil, LPH manages to find a brand new, inoperative 100Mt facility right in a prime mining/military area. The current 'operator' (who apparently wasn't bothering to operate it) must have paid something for it, right? Or did they get it for free? In any case, why wouldn't they at least start wholesaling in some small way? I understand why someone can't fill 100Mt tanks, but nothing? Not a drop? What were they paying a day to hold a brand new, inoperable distribution facility with it's own rail spur? Did the Air Force build this and abandoned it, or did a for-profit company build it and decide they didn't want to earn a profit?
It's odd that LPH manages to find such an improbable opportunity - one that defies everything known about the state of distribution in China. It's profoundly strange that nobody here with money at stake even bothers questioning it or demanding the company explain. All the fraud in this space, and you chose to simply ignore the bizzare improbability that there's a brand-new 100Mt facility sitting around empty for the taking? And you buy the lame explination LPH offers simply because the numbers look good?
I hope for all your sakes that everything is legit about the new facility, but the complete lack of resonable investor skepticism here is absolutely astonishing.
Huh? Pay attention morefud, this has already been explained and dealt with. This was even specifically asked on the last CC, which you obviously did not listen to. And why would we not believe what management tells us in this regard? Do they have a record of lying?? On the contrary, they have been straight up with everything to date. I am comfortable with the explanation of why Haujie exists, and why it is now going to be owned and operated by LPH.
You need to leave your computer every once in a while and get out in the real world. Not everything in life can be found on-line, then plagiarized and regurgitated here, so your employers can keep picking up cheap shares.
Bring on the pipelines buddy boy.....
"...Pay attention morefud, this has already been explained and dealt with. This was even specifically asked on the last CC, which you obviously did not listen to..."
It was not specifically asked, cb. You, apparently did listen to it but didn't absorb any of it. The Rodman analyst asked about generating revenues from a company that wasn't generating any now. Toups was giving his rambling answer to that and mentioned that (now, get this...) some gold mining outfit had it built by Sinopec for - well, I guess they were going to get into the fuel distribution business! And since gold prices went up, they decided to 'only' mine gold and forget about the lucrative fuel distribution business and their $100M investment. That's so stupid, it's worse than no answer at all.
A gold miner coughing up $100M for a pretty substantial distribution depot and then changing his mind? Yeah, I guess... duh. Let's see now... gold didn't crack $1200 until late 2009 when this thing was being built by Sinopec. Then at the end of 2010 with gold a whopping 15% higher, they decide it's just too much bother? Besides, what's a gold miner jumping in to this business on a whim anyway? I thought oil distribution licenses were *so* hard to get? Or did they build a $100M facility without bothering to check on licensing?
Toups answer just makes this more suspicious than ever. I wonder how much everyone made in this deal besides shareholders? Not to mention what the gold miner supposedly paid to get this built - but we'll never know that one. Say, the gold miner isn't like a cousin or brother-in-law of Cai, is he?
"...this has already been explained and dealt with..."
Jeeze... If I only had a nickel for every time some pumper made that claim on a delisted or halted stock...
Tell me what I missed: Your point seemed to be that - aside from the numbers - such a large acquisition without dilution would lend credibility to Longwei. This would somehow distinguish them from the other RTOs simply because they didn't issue stock for an acquisition.
My point was that a new investor is likely to ask a much broader question about the nature of the acquisition than simply looking at it as accretive/non-accretive dilutive/non-dilutive numbers exercise. Why not just focus on the numbers? Because that has proven to be quite USELESS in the cases where management has kept other pertinent, material information from investors.
Obviously you didn't read my post very well.