This whole "China thing" is getting really bizarre and interesting. Firstly....CBLY since it started DOES NOT have a negative money flow on Bigcharts analysis in spite of the drop in price. Most scams do. I don't like what they do and wouldn't invest in CBLY but my likes and dislikes here are irrelevant to whether or not Toups is a #$%$ or dupe or whatever negatives YOU use out there. That the price for CBLY dropped to about 10% of it's historial high means next to nothing in that this has happended to MANY bona fide companies.....e.g. NYNY....and many more. That drop could have been due to a number of factors which the SEC has FAILED to ever correct....namely "market maker" walk-downs....as I call them.....where market makers use a pattern of REDUCING the stock price A LOT MORE on the downside (in light trading) and then they RAISE it on the upside (of light trading). This is a MARKET MAKER scam pattern....not a bogus-compnay pattern and is something I'm sure the SEC knows about beause I've complained about it to them in at least 3 instances. As far as I'm concerned....INVESTIGATION should start with the possiblility of MARKET MAKER and SEC cullusion to RIP-OFF investors. This kind of pattern should have been shut down long ago.
Next we have the issue of short-selling NOT by investors......but by MARKET MAKERS. IT SHOULD BE BANNED ALONG WITH ALL SHORT SELLING. No one should be allowed to sell something the DON'T OWN. But for MARKET MAKERS this is BAD NEWZ for investors. On a DOWN investor day....the MM could manipoulate the price by dropping it on an investord down-move then SELLING SHORT on any recovery move.....therby PANICING some investors.....who then SELL....allowing the MM to drop the price MORE....WHERE THEY CAN THEN COVER THEIR SHORT POSTIION. Nice money making scheme IF YOU ARE A MARKET MAKER like ALL the retail brokers. And that's another POINT: it is a conflict of interest for a RETAIL BROKER to also be a MARKET MAKER.
CBLY....recently is a good example of all this. In the las week it dropped from aboaut 60c to about 35c ON ONLY 150K shares sold!!! THAT'S THE KIND OF GARBAGE THE SEC IS "ALLOWING"....and makes NO Sense to allow.
The bottom line with CBLY is the MONEY FLOW is not NEGATIVE over the entire Hx of the stock.
So just WHO is the SCAM is an OPEN ISSUE.
With LPH the pattern is somewhat different where some 150 million in money flow has eroded in investor capital and has magically dissapeared from this company in a similar "walk-down" pattern. But again.....the Jan 3rd "event" only involved about 15% of outstanding shares but dropoped 73% in "value."
The bottom line for me is ALL THIS STINKS....and the most odor in my view is coming from the SEC and MARKET MAKERS.......NOT investors. The simple fact remains that LPH should NEVER have been allowed on the NYSE:AMEX if it is a total fraud.
The answer: A MAJORD GOVERNMENTAL INVESTIGATION IS NEEDED. IMO it should involve both the FBI and the CIA and if people in the SEC and the MARKET MAKER "industry" have some or a lot ot that 150 million......they need to go to JAIL for a LONG TIME.
If the Company is a scam....well......who the hell let them have a symbol on the AMEX in the first place? So unless you are opening your big mouths on this board without attacking the SEC...YOU ARE THE ENEMY. And last but not least: WHO HAS THE 150 MILLION RIPPED-OFF IN MONEY FLOW HERE????
In my opinion, LPH had plenty of warnings signs of buyers beware throughout.
I’ve been posting my warnings about LPH and all its red flags for a long time on this board. For example:
Sept 13, 2012:
Since PetrolChina (PTR) revenue has been down for the last 3 quarters can someone explain to me how LPH’s revenue is perpetually on the upside despite sharing the same economic condition? Is that even possible?
PTR Operating Revenue:
Jun 2012 - $81.9B
Mar 2012 - $83.5B
Dec 2011 - $86.6B
LPH Operating Revenue:
Jun 2012 - $136.3M
Mar 2012 - $129.2M
Dec 2011 - $126.3M
May 24, 2012:
All these talks about mystical Chinese culture in the way they do business are purely a denial to dismiss what is already obvious. I bet you don’t find China Mobile (CHL), Sinopec (SNP), China Unicom (CHU), China Life Insurance (LFC) having these issues like LPH is.
Mar 20, 2012
I guess you haven’t read the other recent article.
According to the information on this link, as of April 2011 it is illegal for a private Chinese company to exploit on “price adjustment buying”, meaning buying when NDRC sets price at its “low” and hoarding it (presumably in storage tanks) until price goes up.
“six, price departments at all levels should strengthen supervision and inspection of oil prices, CRACK DOWN ON THE OCCASION OF THE USE OF PRICE ADJUSTMENT BUYING, hoarding behavior against spreading rumors, disturbing the market price of the order, and maintain oil market stability.”
I wonder if these rules would affect LPH’s business.
Feb 27, 2012
I’m sure LPH and the Longs are hoping for Carson Block to look elsewhere.
“Institutional investors in North America should avoid buying U.S.-listed Chinese stocks unless they have the internal resources to “really check the company out,” Block said.”
Nov. 7, 2011
It looks like LPH may have huge headwinds ahead. Sinochem has just opened a huge distribution network in Shanxi Province, established in March 2011. The days of 20% revenue gains may soon come to an end, a rude awakening for LPH shareholders' fear.
“Founded in March 2011, Sinochem Oil Shanxi Co., Ltd. is a subsidiary of Sinochem Oil Co., Ltd. The company devotes to
establishing refined oil sales network in Shanxi province and developing wholesale and retail services of refined oil. The company plans to establish a refined oil selling network that includes two oil depots and 100 gas stations by 2016.”
Parethnos, some very good points. I had also noticed these red #$%$ and many others. This is all publicly available information that can be gained by doing some research online without even the need to travel to China. A trip to China would have just conformed it, which Geo did.
LPH could never sustain those margins, and it had difficulty struggling to get its capacity utilization above 50% throughout its entire listing history, despite the alleged strong demand in the region. High margins on 40-50% capacity utilization? Does anyone pigs might fly as well??? Some people valued the company based on existing purported high margins and 100% utilization rates. And there are questions about hoarding which may not be legal. All these problems even without considering there may also be manipulation of the numbers.
The writing was on the wall. If short sellers are meant to have done anything, it was they actually bothered to do read it.
Sentiment: Strong Sell
all the previous comments have valid points of view; my thought is this was an orchestrated "short attack" coordinated with the GEO release that was only truthful to the extent "selective camera positioning enables no evidence of truck operations as seen 10,000 feet above earth" and so the "hoax" plays out as real evidence based on skewed camera perspective..............thereby proving.......",,,,,,,,,,,,,,,,,,,,subsequently, LPH baffles us with behavior suited to a guilty party............
so maybe this hoax corresponded to a time LPH we might otherwise find LPH with its pants down.............
Looks to me that a lot of cockroaches coming out of the woodwork - greedy people and greedy attorneys (attorneys are a mutant rodent species) performing as opportunists "on cue" as the apparent collusive "short attack" unfolded in the style of a like a Cecil B. DeMille Epic Production at a random time "LPH others" may have been doing something they shouldn't have been doing.
One winter evening I set out a mouse trap, once having gone to bed, I heard the "SNAP" of the trap; too tired, I checked it in the morning and found the trap caught two "grazing" mice simultaneously... with whatever time it takes, we'll learn the real explanation on LPH.
Acebear - I am with you 100%.
There is way too much leeway allowed to the white collar crooks around Wall street/Bay street . When you consider all the crooks who set up all those innocent people with mortages they knew they eventually could not afford - looking streight into a looming housing crisis. Then all the bankers who bundelled all the bad mortgages with the good mortgages- knowing that it would all explode sooner then later. Then when the st hit the fan- they pleaded ignorance- informed the gov. they "were too big to Fail" - while bringing down the entire economy.....with millions of taxpayers money bailing out the crooks ---and again the small guy on the strreet losses his house, his job and his self respect ---while the blatent WS/BS crooks continue to wreak havoc with the economy. How many of those ba%%$^&s have gone to jail- only a few. Its a sad commentary on the SEC and other agencies that are suppose to make investing a level playing fielf for all.
With LPH, many people would have known or should have know that ththe numbers were schewed from the Sec to AMEX -Toups, accountants, etc. There is a big axe to grind here and people should not be SILENT.
There were no investment banks on Wall St or Bay St recommending investors buy shares in LPH at the time it was delisted last month. Why do you think that was? The only buy notes I saw were from people who were paid stock promoters.
You need to get your facts right.
Some people probably did think the LPH numbers did not look right, because they bothered to look at the company filings in detail, instead of listening to the guff from company announcements and from stock promoters..
BTW, I have nothing to do with Wall St.
Sentiment: Strong Sell
Actually, in a lot of historic US listed China frauds, the cash flow is also manipulated so it appears very strong and positive. Its not just the earnings.
I have a simpler and more obvious explanation for the LPH and CBLY share price falls; there were more sellers than buyers. I am not surprised that CBLY shares have fallen in value if there is association with Toups as the CFO and Anderson Bradshaw as the auditor, etc. So its a bit much to entirely blame market makers for what's happened.
Sometimes market makers go short on a stock to satisfy a buy order, not necessarily to speculate. In fact, in many cases market makers are reluctant to go short in a illiquid small cap company because it can be hard for them to close out their position later on. Also, the size of short position they can take in illiquid stocks is usually so small that it is hardly worth their while for the risk. Small private investors, on the other hand, might want to take their chances.
Market makers in small illiquid companies usually make most of their money on a wide bid/offer spread instead. Note the especially big spread in CBLY. That is also a message from market makers saying they do not want to deal in the stock unless there is a very wide margin for them to cover their risks.
Sentiment: Strong Sell
Buyers and sellers???? That's the problem.....WHO were they that ripped-off the 100 million (correction: I overstated the number due to fast-read of Bigcharts data...sorry)?
The difference between INVESTOR buyers/sellers....can't IMO explain the disappearance of 100 million dollars since July 2011.