The Haujie facility is turn key so the business ramping up process should be rapid. Dora Dong has connections with the party, so an eastward expansion of business towards Beijing should occur. Mr Cai will be able to leverage his relationships to substantially grow revenue in northern Shanxi as well.
LPH management rescinded the S3 which has ended the dilution of stockholders leaving only the 2009 Warrants which may expire worthless by October 18 of this year. Because LPH isn't going to dilute shareholders, it's going to take longer to close the Haujie facility. The traders spreading fud know this fact and distort to get cheaper shares imo.
It seems to me that the deal is still not closed yet contrary to your opinion. That is probably the reason why the stock has taken a plunder late last year. It was almost unimaginable that the deal could have been closed without additional funding external to the company at that time.
However, I do applaud management's decision to drag this out for two more quarters to allow cash inflow to pay off the deal without diluting shares. Depending on how well the company performed for a couple quarters after the acquistion, I would not be surprised to see the stock go above $3 again. The short term decision by management has cast doubts on the investors, but it is better than diluting them.
It is good to find an undervalued stock to invest once in a while. Good luck to all longs.
I think the real problem here for American investors is an inability to see the long term. The company is obviously doing what it can. it is internally funding with no dilution or outrageous short term interest a doubling of its size in one year despite and AMAZING set of roadblocks thrown up since Jan 1.
If the stock was at 6$ i would expect a pullback. But its at 1.50. At a 2 pe. And growing.