LLEN has not pursued getting a more reputable audit firm. I am guessing that this is because they are afraid of what might be challenged in their financial statements. At one point, management said that a big 4 firm would not accept them as a client because they are too small, but that is BS. With all the transactions that don't smell quite right (sale of Ping Yi for example), constantly 'rotating' their mine holdings, borrowing money from shareholders, etc. etc. etc. It makes sense that they don't want a large experienced CPA firm looking at their books.
Long or short aside, does anyone have any comments about the merits of these arguments?
Valid points. I have often wondered how a company can make so much money ever quarter, then they need to borrow a million bucks off the ceo, scares me. Lawsuit dismissed gave me a boost of confidence. There clearly is potential here in LLEN. I feel it might take a year or so before this really takes off.
"Valid points. I have often wondered how a company can make so much money ever quarter, then they need to borrow a million bucks off the ceo,..." A million dollars is a drop in the bucket for Mr. Lee. Just less than 2 years ago he donated $60 million to a Chinese Christian University. Why borrow from a bank at higher interest rates for chump change when you can get it in house for less?
The 'auditor' issue has been addressed...the last time by Fong at most recent CC. Due to the cloud surrounding 'Big Four' and Chinese companies' bookkeeping scandal there is no advantage in hiring a new auditor at this time. Sharpei
I am following LLEN since 2009 .... they have promised this and that ever since ..... infact, they have changed plans quarters after quarters .... buying, selling, rotating, swapping, dreaming, etc etc ....
The only truth is that LLEN is a black hole. With a significant number of RED FLAGS.
Auditors is one of them.
Loan from management is one of them.
Deregistered shares sale is one of them.
Ping Yi is one of them.
Chinese ownership of china based assets (ie almost all of LLEN assets) is one of them.