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Longwei Petroleum Investment Holding Limited Message Board

  • unemon1 unemon1 Nov 22, 2012 10:09 AM Flag

    Comments about LPH on the XUEQIU Puda Board

    南宫竹轩:
    $龙威石油(LPH)$又一个骗子公司,又一个普大煤业。如果有兴趣,到这个加油站旁边看看就知道一天能有几辆车在那里加油了。还有这个公司是在山西太原,不是陕西。不知是编辑登错了,还是公司故意这样糊弄投资者。

    you can google it ... and verify it yourself

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    • Based on your posting history on the PUDA board and the LPH board, and your foreign style of expression, I think you are quoting your own posts on the XUEQIU board.

      Sentiment: Strong Buy

    • well it is obvious that you ARE that 南宫竹轩 guy. And it is also obvious that you lost money on PUDA and thus don't like any company in Shanxi so that you have been posting all these garbage information here and there over the past 2 - 3 weeks to try to fool investors.

      That 南宫竹轩 guy's post is really laughable with all kinds of childish complaints and fake lies that are slapped back by other posters on Xueqiu.

      The quote you put out is a good example. His said that the company wanted to fool investors because the company's profile on Xueqiu says the company is located in Shaanxi province, not Shanxi province. What an idiot. Like all profile pages on public forums, the profile page for Longwei is created by Xueqiu administrator. It has nothing to do with the company's staff. The mistake is made by Xueqiu employees.

      He further claims Longwei is a small company just based on what he saw in Longwei's two retail gas stations. This shows his total lack of basic understanding of the company's business. As a poster responded there, the two gas station account for less than 0.1% of the company's business. They probably don't spend much time managing these two small gas stations.

      More importantly, he doesn't even know where the company's Taiyuan depot located and claimed that he saw the company's operation in a location that is immediately responded by another poster as a fake location:

      这位仁兄,我是土生土长的老太原人了,长风西街就是走到头也看不到吧?龙威根本就不在长风街,OK?没有实践,没有发言权吧?哎……“中概股”这阵风吹的,让国人自己都对中国的公司没信心了!不排除有浑水摸鱼的公司,但也不能一棍子打死!况且,一个公司的好坏,并非只是你“偶然看到”那么简单,现在很多企事业单位比大部分民营企业看上去都破,难道就能说明国企不好?

      This kind of simple mind is what going to get those idiotic naive samll shorts burned hard in a strong company like LPH.

      Sentiment: Strong Buy

    • You wrote those comments yourself...what a self-promoter you are

      Sentiment: Strong Buy

    • This guy really loves LPH ...

      to find him ... google: "南宫竹轩 " + XUEQIU

      • 2 Replies to unemon1
      • LPH earnings are 100% real. LPH published a SAIC/SAT tax filing reconciliation versus SEC filings convering 3 years from Juy 2009 to March 31 2012, and their auditor personally verified the Chinese reported data on PRC computers in the state tax filings office and signed off on the audit. There were no material differences - numbers agreed to within 1 percent.

        And the margins of around 15 percent plus or minus are not too good to be true and within the range for oil wholesalers in China. The reason they make this profit is because power companies, coal plants, and gas station chains do not buy directly from refiners because there is a distribution network associated with the oil storage depots. LPH makes a smaller margin from "pass through" sales of a very small percent of their business which is allowed to go directly to customers by rail, but does not get offloaded at their tanks.

        Comparing refiners to wholesale distributors is apples and oranges. You need to study the oil industry dynamics for China. Refiners get cheap loans from state banks for operations; private industry does not, generally speaking. Refiners get government support even if they lose money, so that oil production continues to supply the country. Higher ups in SOEs are not worried about shutting down or losing their jobs if they don't make a profit, and the government can tell them what they can charge.

        Wholesalers can and do go through profit margin squeezes if they fail to arbitrage enough oil to last through these events when retail prices are dropping and crude prices are rising. In the US, this is accomplished through trading of derivatives. In China, arbitrage is accomplished with cold hard cash - prepayments to suppliers for a locked-in advance price, and having cash on-hand to raise inventory levels quite a bit higher when crude prices are in a cyclic low. China's 22-day lookback period allows a buffer timeframe for arbitrage to work, effectively. But even so, LPH margins are considerably lower at high points in the crude price cycle. You can't count on LPH raising cash levels as quickly for future needs during periods when crude prices have been high for several months. However, if you average the business across 12 to 18 months, they do quite well. One of the reasons for this is because LPH has zero debt and tries to maintain enough cash to adjust inventories and advances to suppliers to make more profit while the conditions are optimum. The CEO Cai Yongjun is a career oilman, he is not a suitcase CEO of multiple companies, and has been with LPH for 17 years, so he knows how to manage the business.

        Sentiment: Strong Buy

      • It sounds at least there were some relationships among MZ and Cai ..... at least it is reasonable to believe MZ had some trust on him, if he had Cai as legal rep of one of his subsidiary.

        Nevertheless, we should not conclude that by Cai being in trust with MZ, he is certainly a fraudster.

        Personally, I need to understand how LPH is able to make 15% net profits by buying from refiners who book huge losses every day when selling refined products directly to end users. It's not so easy to understand. Either Petrochina is managed by stupids or LPH is not telling the truth.

 
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