I still adamantly believe that Crowe Horwath ought to refund their $500,000 auditing fee for the past two years! Gross incompetence on their part.
The last SEC filing was dated July 03, 2014. I'm wondering what investigations are undergoing to determine if the former CEO, Mr. Zhu, has assets (both real and hidden) that may be subject to seizure if fraud is proven.
I still believe that the auditing firm, Crowe Horwath, that signed off on LIWA's audits for the past two years (for almost $500,000 a year!) owes shareholders a refund. They should also pay a penalty of at least $10,000,000 for utter incompetence. At least Bernie Madoff had the decency to use a storefront audit group to cook his books. Mr. Zhu (and the CFO?) used a "respected" big name auditing firm to seemingly dupe the public.
Still waiting for news...
Did you take a short position Micky? What's your source of information on the "billions of debts"?
I believe Creed has expressed, repeatedly, that LIWA is a lost cause. My thinking is that Power Apex has initiated the process to declare the company insolvent and will subsequently file for bankruptcy. This will allow them to reorganize the company, and pay a percentage to outstanding creditors. If Chinese bankruptcy is similar to U.S. law it means that LIWA shareholders will get zilch, nothing, nada. And, yes, I believe they will restart operations under the reorganization as the sole owners/operators of a new company.
The only hope is if they find $$ that the former CEO squirreled away. Oh, and what about the auditors Crowe Horwath and the $500,000 audits they performed for LIWA the past two years? I think they should refund the money and pay a $10 million dollar fine for incredible incompetence.
Looks like you're up to speed on events Micky. However, I don't think "it will be shut down by the gov't." The Chinese gov't has given the green light for Power Apex to take over LIWA--which is a powerful message. The smelters and factory appear to be state of the art regarding pollution controls. And, the gov't is pushing recycling. The money (or lack of) is the primary question. Did the former CEO hide assets? If there are a number of creditors to be paid Power Apex may need to reorganize the company. By filing for bankruptcy the creditors will get something, and the shareholders of LIWA will get nothing. Power Apex will run the new company that emerges.
The single hope left is that cash or other assets of the former CEO can be found to avoid bankruptcy. I'm giving that a less than 5% chance. But who knows? I've been wrong before...
Yes, Micky you've got it! It appears that the company is insolvent, and the books had "been cooked" ala Bernie Madoff.
The only encouraging news is that the factory is intact and that the Chinese government is apparently going to return some assets that it had previously seized when it shut the facility down. On the other hand, will the new CEO / board need to declare bankruptcy? Lots of unanswered questions. I'm not optimistic - just realistic.
"WXIDG paid tens of millions of dollars..." They did??? What's your source of information on the purchase price Micky? Please disclose how you know this. Or, is this just wishful speculation on your part?
Got to believe you're correct Bernard. He probably had to give up his shares in a bargain deal to lessen any charges / jail time he might receive. They also kill criminals in China, and I think our former CEO is well aware of that.
If they are delisted why would they continue to file anything with the SEC? I would guess this gives Power Apex the green light to take private anything that remains of the company.
It was a "9.9% stake in the underperforming business." Doesn't sound good for whatever Lihua International it is.....
Here's another puzzle: Lihua's audit firm Crowe Horwath was paid $453,000 in 2012 and $453,000 in 2013 according to the 10-K Annual report for 12/31/2013.
These fees were paid "...for professional services rendered by Crowe for the audit of our annual financial statements and the review of the financial statements included in our quarterly reports on Form 10-Q."
Almost a half a million for two years running and Crowe Horwath didn't spot anything amiss? I guess they could work with Bernie Madoff too and not notice anything. What happened to the auditors that blew the
Enron audits--weren't they put out of business?
Mr. Zhu, the former president and CEO of Lihua, is alleged to have engaged in deceptive and illegal actions that appear to include "cooking the books." How is it then that in the subsequent SEC notices Daphne Huang, CFO continues to sign off as the financial officer? Wouldn't she-- as the CFO -- been aware of the financial irregularities of Mr. Zhu? Was she, in any way, assisting Mr. Zhu in his misadventures? Was she responsible for the ongoing misinformation to shareholders of LIWA? I'm puzzled by this.
Methinks a dividend would help against the slings and arrows of outrageous fortune that hast befallen this
sorry stock. Tis a mockery the current share price! To arms! Speak out against this infamy!
My kingdom for a dividend!
"your bottom dollar" ?? Hmm... does that portend something? The Snow Princess (from Frozen) said it best: "Let it go, Let it go!"
What will Monday bring? With world markets focused on Sunday's Crimea vote, China's slowdown, and the fall in copper prices can any news from LIWA have an impact? I don't know why, but I have this old limbo song going on in my head:....... "How low can it go?"
Timing is everything, and it seems our LIWA CEO will be able to utilize the China downturn, lower copper prices, and the Ukraine unrest (with global markets slumping) as basis for a lower buyout price should he decide to take that route. He might consider $6 /sh a generous offer.
I knew it was coming: CXDC's share price passed LIWA ($5.07 vs. $5.06) this afternoon. I recall that LIWA was recently $1.00 + higher in share price in comparison. Just goes to show the impact of determined manipulation and suppression of LIWA's shares. Kudos to LIWA management for a job well done!