$LVS/$MPEL/$WYNN up 10-20% in last month; $AERL has been flat and is overdue for a catch-up run. (P/E ~3).

China to lower size threshold for Hong Kong listings

Undervalued Chinese small caps that have ridiculous P/E valuations because of U.S. investor risk aversion might be able to list in Hong Kong. If and when this policy is implemented, US-listed China stocks will be more susceptible to being bought out by private entities so that they can then re-list on the Hong Kong exchange for a much higher valuation.

"China to Let Smaller Groups List in Hong Kong"
"Monday, 16 Jan 2012"

http://www.cnbc.com/id/46017076

"Yao Gang, vice-chairman of the China Securities Regulatory Commission, pledged to “deepen” China’s capital markets reforms and to make sure Hong Kong is one of the main beneficiaries of the changes."

"Speaking at the Asian Financial Forum in Hong Kong, Mr Yao said the CSRC would lower the size threshold for Chinese companies listing in Hong Kong and “open the door wider for small and medium enterprises to list in Hong Kong”."

"Until now, Chinese listings in Hong Kong — one of the main routes for foreigners to invest in China — have been dominated by large state-owned enterprises such as banks and energy companies."

$LPH recruiting for Huajie location:

As noted in news releases, LPH's upcoming acquisition of Huajie Petroleum is located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, China.

However, previous job recruitment locations were all listed in Taiyuan, Shanxi, not Fanshi County.

Note that the newest job recruiting listings suggest Longwei is hiring workers in the county of their Huajie Petroleum new facility. See below where I placed 3 asterisks (***) in the text copied from the job listings website:

http://translate.googleusercontent.com/translate_c?hl=en&prev=/search%3Fq%3Djobs%2Bzhaopin%2BLongweishihua%26hl%3Den%26biw%3D1270%26bih%3D846%26prmd%3Dimvns&rurl=translate.google.com&sl=zh-CN&u=http://jobs.zhaopin.com/taiyuan/%25E5%258A%259E%25E5%2585%25AC%25E5%25AE%25A4%25E4%25B8%25BB%25E4%25BB%25BB_179519423250008.htm&usg=ALkJrhjoUb6sXSAYAA20YseoMycU3b8nLA

"Long Wei Trade Co., Ltd. Taiyuan

Company Industry: Trade / export of oil / petrochemical / chemical energy / mineral / mining / smelting travel / vacation
Company Type: Private
Company size: 100-499
Job Category: administrative / logistical / secretarial
Location: Taiyuan
2012-01-11 Release Date: 2012-01-11
Experience: 5-10 years
Minimum Education: College
Management experience: Yes
Nature of work: Full-time
Number: 2

Location: Shanxi *** Fanshi ***, Taiyuan.

Responsibilities:

1. Administrative office responsible for organizing the development of cost estimates
2. Responsible for organizing the logistics of the development budget
3. Responsible for developing and improving the office and logistics management rules and regulations relating to the management
4. Responsible for organizing writing Milestones;
5. Office management company responsible for organizing the drafting of documents, organizing company-wide document number, printing, distribution and administrative documents, important data filing, archiving, storage work;
6. The company responsible for organizing the reception of guests;
7. Responsible for organizing the procurement of office supplies and equipment
8. Responsible for controlling the various departments of the administrative office expenses
9. Responsible for the assessment of subordinates;
10. Responsible for the company's external relations, publicity, public relations;
11. Responsible for payment of office supplies
12. Responsible for the preparation and organization of the meeting;
13. Responsible for leading the company's logistics management;
14. Responsible for the company seal, letter of introduction of the use of custody;
15. Responsible for completing the tasks assigned temporary general manager;
16. Responsible for safety oversight.

Qualifications:

1. Age 30-45 years old, **** Fanshi **** (requires male), Taiyuan (both men and women).
2. Tertiary and higher education (or equivalent), management and other related professionals.
3. Deep his writing skills, proficient use of office software.
4. More than five years work experience, and at least three years experience in team management within the company.
5. Outgoing personality, excellent communication skills, affinity. Loyalty, open-minded, impartial, honest and self-discipline.
6. Have excellent language skills, good organizational management meetings.
7. Have experience in large enterprises is preferred."

$LPH recruiting for Huajie location:

As noted in news releases, LPH's upcoming acquisition of Huajie Petroleum is located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, China.

However, previous job recruitment locations were all listed in Taiyuan, Shanxi, not Fanshi County.

Note that the newest job recruiting listings suggest Longwei is hiring workers in the county of their Huajie Petroleum new facility. See below where I placed 3 asterisks (***) in the text copied from the job listings website:

http://translate.googleusercontent.com/translate_c?hl=en&prev=/search%3Fq%3Djobs%2Bzhaopin%2BLongweishihua%26hl%3Den%26biw%3D1270%26bih%3D846%26prmd%3Dimvns&rurl=translate.google.com&sl=zh-CN&u=http://jobs.zhaopin.com/taiyuan/%25E5%258A%259E%25E5%2585%25AC%25E5%25AE%25A4%25E4%25B8%25BB%25E4%25BB%25BB_179519423250008.htm&usg=ALkJrhjoUb6sXSAYAA20YseoMycU3b8nLA
"Long Wei Trade Co., Ltd. Taiyuan

Company Industry: Trade / export of oil / petrochemical / chemical energy / mineral / mining / smelting travel / vacation
Company Type: Private
Company size: 100-499
Job Category: administrative / logistical / secretarial
Location: Taiyuan
2012-01-11 Release Date: 2012-01-11
Experience: 5-10 years
Minimum Education: College
Management experience: Yes
Nature of work: Full-time
Number: 2

Location: Shanxi *** Fanshi ***, Taiyuan.

Responsibilities:

1. Administrative office responsible for organizing the development of cost estimates
2. Responsible for organizing the logistics of the development budget
3. Responsible for developing and improving the office and logistics management rules and regulations relating to the management
4. Responsible for organizing writing Milestones;
5. Office management company responsible for organizing the drafting of documents, organizing company-wide document number, printing, distribution and administrative documents, important data filing, archiving, storage work;
6. The company responsible for organizing the reception of guests;
7. Responsible for organizing the procurement of office supplies and equipment
8. Responsible for controlling the various departments of the administrative office expenses
9. Responsible for the assessment of subordinates;
10. Responsible for the company's external relations, publicity, public relations;
11. Responsible for payment of office supplies
12. Responsible for the preparation and organization of the meeting;
13. Responsible for leading the company's logistics management;
14. Responsible for the company seal, letter of introduction of the use of custody;
15. Responsible for completing the tasks assigned temporary general manager;
16. Responsible for safety oversight.

Qualifications:

1. Age 30-45 years old, **** Fanshi **** (requires male), Taiyuan (both men and women).
2. Tertiary and higher education (or equivalent), management and other related professionals.
3. Deep his writing skills, proficient use of office software.
4. More than five years work experience, and at least three years experience in team management within the company.
5. Outgoing personality, excellent communication skills, affinity. Loyalty, open-minded, impartial, honest and self-discipline.
6. Have excellent language skills, good organizational management meetings.
7. Have experience in large enterprises is preferred."

Glen, Mike doesn't work for LTUS any longer:

News from the LTUS 8K dated January 3, 2012:

"Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers."

"On January 3, 2012, Michael Toups resigned as a director of Lotus Pharmaceuticals, Inc. (the “Company”). Mr. Toups’s resignation was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices."

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7994906

I think Mike's director role was convenient for LTUS given Mike's presence in China and knowledge of financial regs, already being CFO of LPH and another China small cap. Also, Mike didn't come on-board until long after LTUS's infamous land-deal was done. All of LTUS's 10Ks and 10Qs are signed by their Chinese CEO, not Mike, FWIW he's just a director there.

$LPH sales will pickup after oil tax cut announced:

Yesterday it was reported that the oil production/refining tax per barrel has been lowered by means of only taxing the portion of barrel price above a $55/BBL threshold, where previously the threshold was $40/BBL. This should have a DRAMATIC EFFECT ON WHOLESALERS.

SOE refiner profits are razor-thin. This just reduced the potential gate prices of crude in China by $6/bbl. SOE refiners operating at a loss or near-loss means smaller wholesalers have to scrounge around the independents for oil and pay massive advances.

The effect of this should be to ease the restricted supply of refined products, meaning less haggling and scrounging for companies like LPH and fewer advances required.

The pass-through effect of $6/bbl lower crude price is probably minimal. Everyone in the chain is going to try to get their piece first. Still, LPH may benefit by a few tens of yuan/ton in thier spread going forward. The producers are the only ones that will benefit from the retroactive adjustment, though.

(1) The "shortage" of diesel in December occurred because downstream segment retailers did not want to sell gasoline at a loss due to the price ceiling set for pump prices by the PRC. Similarly, refineries did not want to sell at a loss to wholesalers, either, so they restricted deliveries to those who were paid in advance. Hence the reason that sales have been slow and inventory was not selling.

(2) By increasing refiners profits indirectly when you lower their taxes by around 6$/BBL, they are more willing to sell at a lower cost, wholesalers can sell to gas stations, and sales volume will dramatically pick up.

(3) The profit margin for LPH - forced into a range between retail pricing and refinery prices - will improve somewhat as well, because the spread increases slightly when there is a 6$/BBL increase in profits for the refinery, commensurate with a 6$/BBL lower threshold cost for selling point at which they break even versus make money.

This means LPH sales for January could easily be double of their December sales.

Bullish for $NEP: China LOWERS Oil tax.

Source:

http://www.bloomberg.com/news/2012-01-05/sinopec-says-china-raises-oil-windfall-tax-threshold-to-55-1-.html

Previously, the per-barrel oil windfall tax applied to every nickel above a price threshold of $40/BBL, now the threshold has been raised to $55/BBL.

Quote:

"Sinopec Says Ministry of Finance Raises Oil Windfall Tax Threshold to $55"
January 5, 2012

"China Petroleum & Chemical Corp., Asia’s biggest refiner, said the Ministry of Finance increased the threshold for the nation’s oil windfall tax to $55 per barrel from $40 effective Nov. 1, 2011."

"Chinese provincial governments increased a resources tax on crude oil sales to 10 percent from 5 percent in November, replacing a volume-based levy. The finance ministry’s action offsets those increases, Gordon Kwan, Hong Kong-based head of regional energy research at Mirae Asset Securities HK Ltd., said in a phone interview. 'This is good for the three major oil companies and the major oil players' from overseas."

"The levy will be charged at 20 percent starting at $55 a barrel and rise in $5 increments to a maximum of 40 percent at $75 per barrel, according to the statement. Previously, the levy started at $40 and reached the maximum at $60."

Another Source (Reuters):

"BEIJING, Jan 5 (Reuters) - China has raised the
threshold for windfall tax on crude oil production to $55 a
barrel from the previous $40, effectively cutting tax payments
by the country's oil producers such as PetroChina
and CNOOC Ltd. The new taxation, backdated to Nov. 1 last year, will be calculated monthly and the levies will be paid to the government on a quarterly basis, according to a statement that Sinopec Corp, the country's second largest oil producer, submitted to the Shanghai Securities Exchange. The statement was published on the Shanghai Securities Exchange's website (www.sse.com.cn)."

Oil producers will continue to be subject to a five-tiered progressive windfall tax rate, although the threshold for each category is higher than those in the previous scheme."

"The following table shows the new tax formula.
Crude oil prices Windfall tax rate:"
($/bbl) (pct)
$55-$60 20%
$60-$65 25%
$65-$70 30%
$70-$75 35%
>$75 40%"

starting to move? $18.00 to $19.60 over the New Year holiday, LOL. But I agree it could have decent upside to the mid-20s.

Fracking causing earthquakes?

Isn't this analogous to the global warming conspiracy theory? LOL

Seriously, there isn't much data yet on the subject...two regions does not make proof. I'd be interested on the subsurface geotechnical appraisal of the areas affected by recent quakes.

This should be a work in progress, LMAO... I can imagine a few more extensions for:

"Message board still hates you" ---> "create new basher/pumper alias"

"Economy to improve in 6 months" --> "open beer and buy calls"

"Suddenly realize you made a foolish speculative buy" --> "Claim Mikey told you about it"

"Feeling nostalgic about good old days of great profits" --> "Mention you miss Pammy"

Maybe they can waste the money they saved on lobby reform and campaign finance reform

PBKEF a double from October lows!

I originally bought at 9$ before the big drop, missed the bottom at $6, then bought at $8. But I had to sell something to raise cash for a car so I sold around $8.40...woops!

The current price is $1.27, not $1.20
The current TTM EPS is $0.73 not $0.74.
The forecasted EPS after acquisition fully operational is between $1.07 and $1.17 not $1.04.
$1.26 x (1.17/0.73) = $2.02.

But the main point you are missing is doing this acquisition WITHOUT a $50M shelf offering lends HUGE credibility to LPH for not diluting shareholders yet still being able to grow the company in a successful manner.

While the current P/E of 1.7 is basically priced like any other Chinese RTO microcap, the creation of credibility will likely raise the bar for investor confidence to approximately a P/E of 50% to 75% higher, so you can multiply that PPS estimate by the same factor:

$2.02 x 1.50 = $3.03 or $2.02 x 1.75 = $3.54.

Zester, short interest on this stock remains less than one day of trading shares, so I am pretty convinced you are not short. Furthermore, there are no options available on LPH so you can't buy puts or sell calls. Given that, I really can't figure out why the heck you keep wasting your time on this board for month after month, year after year. It's like one of their oil tank cars ran over your foot or something. Please elaborate or go find something useful for your life, like a knitting forum.

According to LPH's CFO, they are looking to close on the acquisition of their third facility by the end of this year.

CFO Toups will be in China Thursday, 12/15/11 for the annual shareholder meeting. Expect an update on the Huajie acquisition by Thursday or Friday.

A few days ago, CFO Toups spoke in a CC, here is a summary:

1. CFO Toups is in China THIS WEEK for the Shareholders meeting and to work on the details of closing the acquisition of Haujie, which will increase their net earnings by $40M and grow EPS from $0.67 to $1.07, WITHOUT ANY SHAREHOLDER DILUTION.

2. The acquisition calls for final payment and registration of the transaction and transfer of title, which takes a little time.

3. Toups expects to be able to give update regarding the acquisition at shareholders meeting IN TWO DAYS: THURSDAY DEC. 15, 2011.
4. He will be working on the tax recon. while in China next week - hopes to release "fairly quickly"

5. CEO Cai Yongjun still hopes to finalize acq. with cash, but because of relaxing of Chinese lending, may consider small debt loan to finalize (NOTE: LPH already has in escrow deposit $85M for the $108M purchase price).

6. Ramp up of the 100,000 metric ton Huajie wholesale oil storage facility will take a few months, due to Chinese New Year and will take approx. 20 million working capital

7. Cai is more inclined to divi instead of share buyback. The two owners already own 67%. Divi could start in Q2 2013 (Oct-Dec 2012)

8. Going private is not a consideration at this point. CEO Cai wants to continue to do what is best for current shareholders. They are hoping PPS improves as Chinese US listed sentiment improves.

9. LPH is still looking to hit sales target for 2012, despite Q1 sales, they hope organic growth will enable them to reach projection.

10. LPH does not look to change auditor at this point, happy with CVWB. (I voted to change the auditor in the shareholder proxy sent out this week, but the public float is only 33% of the total shares outstanding, as insiders own 67%.)

If only a dozen RTOs were to follow in LPH's path of growing EPS by 60% with acquisitions funded totally from their own earnings and with NO SHAREHOLDER DILUTION, then sentiment across the entire China stocks sector would change dramatically and P/E values could double or triple.

LPH Article in TheStreet 12/5/11:

http://www.thestreet.com/story/11331574/1/longwei-petroleum-investment-holding-limite-stock-upgraded-lph.html

LPH: Toups CC summary from YMB claefanortnorq:

1. He is going to China next week for the Shareholders meeting and to hopefully finalize the acquisition of Haujie.
2. the acq. calls for final payment and registration of the transaction and transfer of title, which takes a little time.
3. expects to be able to give update regarding the acq. at shareholders meeting on Dec. 15th
4. he will be working on the tax recon. while in China next week - hopes to release "fairly quickly"
5. Cai still hopes to finalize acq. with cash, but because of relaxing of Chinese lending, may consider small debt loan to finalize
6. ramp up of Haujie will take a few months, due to Chinese New Year and will take approx. 20 million working capital
7. Cai more inclined to divi instead of share buyback. The two owners already own 67%. Divi could start in Q2 2013
8. Going private not consideration at this point. Cai wants to continue to do what is best for current shareholders. They are hoping PPS improves as Chinese US listed sentiment improves.
9. still looking to hit sales target for 2012, despite Q1 sales, they hope organic growth will enable them to reach projection.
10. do not look to change auditor at this point, happy with CVWB

LPH: Toups CC summary from YMB claefanortnorq:

1. He is going to China next week for the Shareholders meeting and to hopefully finalize the acquisition of Haujie.
2. the acq. calls for final payment and registration of the transaction and transfer of title, which takes a little time.
3. expects to be able to give update regarding the acq. at shareholders meeting on Dec. 15th
4. he will be working on the tax recon. while in China next week - hopes to release "fairly quickly"
5. Cai still hopes to finalize acq. with cash, but because of relaxing of Chinese lending, may consider small debt loan to finalize
6. ramp up of Haujie will take a few months, due to Chinese New Year and will take approx. 20 million working capital
7. Cai more inclined to divi instead of share buyback. The two owners already own 67%. Divi could start in Q2 2013
8. Going private not consideration at this point. Cai wants to continue to do what is best for current shareholders. They are hoping PPS improves as Chinese US listed sentiment improves.
9. still looking to hit sales target for 2012, despite Q1 sales, they hope organic growth will enable them to reach projection.
10. do not look to change auditor at this point, happy with CVWB

LPH: Toups CC summary from YMB claefanortnorq:

1. He is going to China next week for the Shareholders meeting and to hopefully finalize the acquisition of Haujie.
2. the acq. calls for final payment and registration of the transaction and transfer of title, which takes a little time.
3. expects to be able to give update regarding the acq. at shareholders meeting on Dec. 15th
4. he will be working on the tax recon. while in China next week - hopes to release "fairly quickly"
5. Cai still hopes to finalize acq. with cash, but because of relaxing of Chinese lending, may consider small debt loan to finalize
6. ramp up of Haujie will take a few months, due to Chinese New Year and will take approx. 20 million working capital
7. Cai more inclined to divi instead of share buyback. The two owners already own 67%. Divi could start in Q2 2013
8. Going private not consideration at this point. Cai wants to continue to do what is best for current shareholders. They are hoping PPS improves as Chinese US listed sentiment improves.
9. still looking to hit sales target for 2012, despite Q1 sales, they hope organic growth will enable them to reach projection.
10. do not look to change auditor at this point, happy with CVWB

LPH: Toups CC summary from YMB claefanortnorq:

1. He is going to China next week for the Shareholders meeting and to hopefully finalize the acquisition of Haujie.
2. the acq. calls for final payment and registration of the transaction and transfer of title, which takes a little time.
3. expects to be able to give update regarding the acq. at shareholders meeting on Dec. 15th
4. he will be working on the tax recon. while in China next week - hopes to release "fairly quickly"
5. Cai still hopes to finalize acq. with cash, but because of relaxing of Chinese lending, may consider small debt loan to finalize
6. ramp up of Haujie will take a few months, due to Chinese New Year and will take approx. 20 million working capital
7. Cai more inclined to divi instead of share buyback. The two owners already own 67%. Divi could start in Q2 2013
8. Going private not consideration at this point. Cai wants to continue to do what is best for current shareholders. They are hoping PPS improves as Chinese US listed sentiment improves.
9. still looking to hit sales target for 2012, despite Q1 sales, they hope organic growth will enable them to reach projection.
10. do not look to change auditor at this point, happy with CVWB

$LPH: Kevin Chen more bullish than ever

Below are excerpts quoted from the latest article by the analyst Kevin Chen, who continues to be very bullish on LPH:

http://www.staranalystonline.com/

"The reader asked me if I am concerned by the slow-down of the growth in LPH’s revenue and net profit in the last quarter and going forward. The answer: not really...It is very unlikely that the company will not be able to earn at least one dollar per share after Haujie facility is onboard...Unless China GDP contracts 10% in a year, oil consumption will still grow and so does the company’s revenue. In addition, as a black-gold wholesaler in an oligopoly situation the company’s margins are very stable. As such, the stock is actually a very good hedge against economy downturns in China or other parts of the world."

"If the stock somehow still stays below $3 for considerable period of time, I still think that it will be bought out by the two biggest shareholders or by external entities. Again, I don’t think this is just a wishful thinking or hypothesis. It is as real a scenario as possible right now. Look no further than HRBN."

"Over the past 12 months, no executive or director of LPH has sold a single share of the stock! Instead, they have bought 78K shares. More importantly, the two biggest shareholders including the CEO have kept 67 million shares, or 97% of their original stake of the company...Insider behavior is an undeniable, time-tested barometer of a company’s true value."

"The CFO said in the last CC in response to a caller’s question that the board of director is seriously considering issuing dividends starting next year. He also explicitly responded that although share buybacks is not out of consideration, the BOD prefers issuing dividends over buying back shares as a way to return to shareholders and increase shareholder value...When exactly will the company start paying dividends and how much dividends will it pay? My guess is ...the first quarter of fiscal year 2013, i.e. the third quarter of calendar year 2012, after...inventory in its new Huajie facility to a stable level."

LPH 2010 corporate summer trip photos.

This was a laugh, I ran across it while googling. It's the company's group weekend retreat to the seashore in summer of 2010.

Sounds like they are a tight-knit group.

"Long Wei Trade Co., Ltd. Taiyuan, while in the development and growth with special emphasis on team building. General manager, Cai Yongjun attaches great importance to personnel training and strengthening in order to "make the best use for our own use, the simultaneous development of business with you" as business philosophy, in strengthening the business skills, particularly focusing on the quality of staff to enhance, improve living and working environment promotion and pay, while effort to promote the humanities, the harmonious development of enterprise culture. Early August 2010, the company employees in two batches went to the beautiful coastal city of Weihai travel, vacation, this initiative is not just the welfare of employees, more importantly, the staff, "the release of pressure, strive to open horizons, increase their knowledge, to promote exchanges, strengthen feelings ", with the coastal city of high human qualities and the magic of nature has given to the purification of the mind, enhance service awareness, and further enhance team spirit and team cohesion."

http://www.nasdaq.com/symbol/lph/institutional-holdings

Firm.........ReportDate...SharesHeld..Change......PercentChange
FIL..........09/30/2011...792,733...(2,336,867)...(74.67%)
ROCHDALE.....09/30/2011...164,650...(1,690,992)...(91.13%)
SPARK_LP.....09/30/2011...401,300.....401,300.......New
RENNAISANCE..09/30/2011...143,350.....120,950......539.96%

The good news is between FIL and Rochdale that almost completely accounts for the barrage of endless blocks on the ask that was pushing the price down slowly but steadily all summer, and Rochdale is now totally out and FIL should probably be out by now if they want to be, since we have had a month of very healthy volume.

So there are no headwinds with these funds, and further positive catalysts should have no resistance except when it gets to the point where the day traders and swing traders think they have earned enough profit to cash out early.

Now the other good news is we picked up a new institution, "Spark LP/DE", and another institution added, Rennaisance, although their total holdings are not that great.

I hope the professor got out of China before someone posted that on YouTube. Hong Kong may not be safe, either.

Damn, thanks Steve0! I never thought I'd get instructional materials prepared personally just for me, LMAO.

$LPH: consolidation pullback setup for end of year acquisition run.

"I time the market by focusing on fiscal stimulus trends. That's the best way to predict the direction of a debt-dependent economy. It's worked very well since 2009."

Curious, Rato, do you think the fact that the market rebounded for over a month beginning when operation twist started is cause-and-effect "soft" stimulus? One could argue that buying long term securities frees up bankers' money to lend elsewhere and might end up at brokerage desks or in home equity loans used by retail investors.

$LPH earnings are due 11/10 for their 10Q. Expect cash on hand to be enough to close on the Haujie facility acquisition. Stock should resume its grind upwards when the 10Q is out and demonstrates that cash is now sufficient to close the deal.

$LPH earnings are due out by 11/10. Expect cash on hand to be sufficient to close on the Haujie facility acquisition. The stock should resume its grind upwards when the 10Q is out and demonstrates that cash is now sufficient to close the deal.

PCAOB officials discuss the upcoming meeting next week with PCAOB, SEC, and Chinese officials regarding joint audits of Chinese audit firms: CNBC interview with PCAOB.

http://video.cnbc.com/gallery/?video=2045974082

$AERL big buyer $1M, 150K shares 9:30am. Nice to see funds and institutional money coming back here. Expect a nice run in AERL soon.

That's the same date that their 10Q is due (40 days after close of the quarter for an accelerated filer). Could be an interesting day.

Had the same observations recently. I invested mainly in larger companies for the bounces in the rapid swings early this fall because the big companies, for example big oil like CNOOC, would rebound instantly with the SPY. The microcaps would not respond as fast and were not as effective for bounce plays so I generally stayed out of them from August to October. Then after the October 3rd dip, I didn't realize it was the bottom until a day later due to intraday see-sawing, and by then the larger companies had moved up 6-7%. So I bought into microcaps at that point because they hadn't really woken up yet from their slumber, and hope to capture just as much or more upside.

LPH will accelerate with countdown to acquisition since macro has improved.

Legitimacy - LPH is almost the only China stock that rescinded a major stock offering that would have diluted about $50M - all to preserve shareholder value.

Growth - LPH has $85M in escrow towards a $108M facility acquisition that will grow EPS from 0.67 to 1.17 within 12 months.

Accounting - LPH passed their 10K audit released in September, beat earnings estimates by 10 cents, and the escrow deposit in particular was confirmed. LPH has stated they will look into having their auditor perform and publish a reconciliation of SEC and Chinese tax filings to demonstrate their integrity, once the next 10Q is released.

HK:2883 China Oilfield Svcs - up 42% 10/26 (12.54 HKD) from 10/4 (8.84 HKD). CNOOC ADR also up a lot 10/26 $189 USD from 10/3 low of $142.

HK:2883 China Oilfield Svcs - up 42% 10/26 (12.54 HKD) from 10/4 (8.84 HKD). CNOOC ADR also up a lot 10/26 $189 USD from 10/3 low of $142.

Oil Sector Ripe for Picking, Mergers Surge
MarketWatch news

http://www.marketwatch.com/story/oil-gas-sector-ripe-for-picking-as-mergers-surge-2011-10-21

Oil Sector Ripe for Picking, Mergers Surge
MarketWatch news

http://www.marketwatch.com/story/oil-gas-sector-ripe-for-picking-as-mergers-surge-2011-10-21

Oil Sector Ripe for Picking, Mergers Surge
MarketWatch news

http://www.marketwatch.com/story/oil-gas-sector-ripe-for-picking-as-mergers-surge-2011-10-21

OT: PBKEF potential 300% Upside Based on Acquisition
SeekingAlpha article

http://seekingalpha.com/article/299950-petrobakken-may-have-300-upside-based-on-brigham-s-acquisition

Monthly dividend for October is 1% ($0.08 at a PPS of low $8 range makes 11% divi)

PBKEF May Have 300% Upside Based on Acquisition
SeekingAlpha article

http://seekingalpha.com/article/299950-petrobakken-may-have-300-upside-based-on-brigham-s-acquisition

Monthly dividend for October is 1% ($0.08 at a PPS of low $8 range makes 11% annual divi)