Longwei Petroleum (fka LPIH)

[honestengine_rh]

There is a good chance of going private, as many Chinese companies are.

The SEC wants them to clear up their inventory capacity. Considering they have 4-12 tanks at each site, Longwei's claim is probably correct. Besides, inventory self-corrects in the second year, if you know how COS works.

As for the $6000 stock purchase by Toups, that is almost a petty crime. They can say it was compensation or reimbursed expenses. After all, they paid him $240,000 severance.

Longwei will most likely prove that their inventory 'capacity' can be adjusted to their needs. They may have to pay a fine, but once they file their financials, they should be cleared.