Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
This is not shorting in my opinion this is disappointment. People voting with their shares. As I wrote on another board the past "pops" and quick drops have created a Pavlovian effect. People are getting conditioned to sell on any pop. Of course this will be the wrong approach once we get a ruling but people are creatures of habit. If we don't have any news by the end of the month I say we are going to hover around $3 again.
Information about the German Legal system
From LAW.COM
German City Aims to be Patent Litigation Hotspot
The court system in the German city Mannheim is vying to be the fastest—and most popular—in the country.
By Joseph Rosenbloom All Articles
Focus Europe
January 9, 2013
The two windowless courtrooms in which patent cases are heard in the Rhineland city of Mannheim may lack grandeur, but their decisions are thundering around the world.
Tucked away on the ground floor of the concrete-gray Mannheim District Court, the courtrooms are a major front in the global disputes over patents underlying smartphones and other popular digital devices. "If you ask people in Silicon Valley, they all know Mannheim and compare it to the Eastern District of Texas," says Marcus Grosch, a Mannheim-based patent litigator with Quinn Emanuel Urquhart & Sullivan who has represented Google's Motorola Mobility Division in the city's patent courts. Lightning-quick resolution of patent infringement cases, of course, is the storied reputation of the Texas court. Patent litigators favor Mannheim because they say its courts are the swiftest in Europe for handling petitions for permanent injunctions. In recent years, companies suing in Mannheim court include, in addition to Motorola, such high-tech giants as Apple Inc., Samsung Electronics Co., and Microsoft Corporation.
Germany has a bifurcated system in which the claim for an injunction and a challenge to a patent's validity move on separate tracks in different courts. The split system results in "the advantage of speed" on the injunction track in all German courts, notes Frank Peterreins, managing partner of Fish & Richardson's Munich office. "The requirement is that a defendant committed an infringing act," he says. "[If so] you can get an injunction." Rarely is an injunction stayed while a patent's validity is litigated to final judgment, which typically takes 18 months to two years in most German courts from the time an initial complaint is brought.
File suit in Mannheim, and you can obtain a permanent injunction in as little as eight months. A patent owner armed with an injunctive order, which can force an infringer to withdraw its product from Germany and thereby forfeit sales in Europe's largest economy, wields a "very good pressure tool to make a defendant think intensely about settling a worldwide dispute," says Tilman Müller-Stoy, a partner with the Munich-based IP firm of Bardehle Pagenberg.
In Germany, plaintiffs—including multinational ones—have wide forum-shopping latitude because a court has jurisdiction if a patented product is marketed over the Internet in its district. Litigators estimate that Düsseldorf attracts about half the 1,000 or so patent cases filed annually in Germany, Mannheim a quarter, and Munich one-fifth. Until a few years ago, Düsseldorf enjoyed a reputation as the swiftest in Germany, but its popularity resulted in a clogged court. The Mannheim court, which had revved up its speed by adding a second chamber in 2004, began to draw more cases as Düsseldorf's court slowed.
One of the cases in Mannheim that pitted two high-tech giants against each other, Microsoft and Motorola, illustrates the speed with which the court can move. In a complaint filed in July 2011, Motorola complained that Microsoft's Xbox game was infringing two of its H. 264 video-coding patents. The court granted an injunction in May 2012—less than nine months later.
Today, the courts in Düsseldorf, Munich, and Mannheim appear to be vying for the title of the fastest, and thus the most popular, court system in Germany. And there's potentially a lot at stake for the winner. Patent litigators say that judges in the three cities are staking a claim to be the logical locations for Germany's regional European patent courts, should a European Union proposal to establish a Unified Patent Court becomes a reality ["Courting Failure," Summer 2011].
Read more: http://vringo.freeforums.net/index.cgi?board=general&action=display&thread=1104#ixzz2I4rSKqhP
Someone has lost patience here... selling going on. As I said not surprised. The legal process justified or not just seems endless no sense of a resolution on any front. Yes you can point to legal time-frames etc but people especially long-term holders need to see something. We could be heading for a lower range.
If you are on the Longwei mailing list you will notice that the email was sent from Toups address and he requested any questions also to be forwarded. If a person was going to resign he wouldn't be sending out emails from the company he was resigning from he would be distancing himself and he isn't doing that. It's hard for people to believe because GEO has created all this doubt and now LPH has to defend themselves in a legal way. They can't hide the way GEO has.
According to many on this board he was supposed to resign a long time ago.
Thank you very much for your informative post. Hope JJ gives us something to talk about soon. This place will be completely different once that happens I am certain of that. Regarding ZTE I thought they (VRNG) filed an injunction in Germany and the court in Mannhein is supposed to rule on this anytime. That would be good news if we get a positive result from that.
Here is a post from a guy on another board. He is not a flipper but a long-term holder his sentiment is typical. Personally I am not interested in another dip, we have had enough dips. The stock has bee around and below three, plenty of reloading opportunities have been available, we need to move forward not back IMHO. I personally don't bother watching it all that close anymore. If most people realized what the timelines were most would not have been involved in this including myself. Lots of money tied up here. I am not giving up but i do focus in other opportunities right now until I can see something happening here, I have triggers set-up up and down. Anyway here is the post I mentioned before my rant.
Although we know that we are involved in a litigation company and a lot of information can not be disseminated to shareholder for fear of tipping their hat to present litigation cases some news to shareholders should be forthcoming.
Other then the most recent News the "Board of Directors increased the size of the Board of Directors from seven to eight and appointed Mr. Ashley Keller as a member of the Board of Directors effective immediately to fill the newly created directorship and to hold office until his respective successor is duly elected and qualified. Mr. Keller will serve on the Audit and the Compensation Committees of the Board of Directors" everything else has just been NOISE as SK said awhile ago. All you have to do is look at Yahoo or Google finance and see theirs been more SA stories, opinions, and misrepresentation (cough cough Dan R) then factual news.
We did hear on the most recent CC that an update would be given w/ regards to the ZTE lawsuit in January and and the lack of news from VRNG and the Delay with JJ has clearly annoyed and frustrated investors none the less. We may even get a clear and concise decision in the ZTE case before all the mumbo jumbo dealing of the Google case!!!!
I may be venting again, but being involved and holding since May/June, losing $ on options, and the uncleare decision of November with no clear site proved to be an anti-climax to any investor as it left everyone staring at one another saying "what just happened?"
Lets see when JJ decides to come to grips with the situation and make a final ruling and send everyone on their merry way, me personally, I feel ZTE gets settled first before these shenanigans with Google and QE.
Read more: http://vringo.freeforums.net/index.cgi?board=general&action=display&thread=1127#ixzz2I3zxlKxH
I feel like we are watching a football game in which the officials (namely JJ) are waiting to make a decision regarding instant replay. Team VRNG says Patent Infringement . Team GOOG says no way. The crowd (jury) saw Patent Infringement. Now we are all just waiting for the officials to give us their decision. This post just goes to show that I am slowly losing my mind because of VRNG...
I agree with you JJ, however I also see that investor fatigue is palpable. You can see it in the pathetic daily volumes and the decline in posts to this and other boards. The legal timeline is what it is but it is definitely too slow for most people. The pace of course has no bearing on the decision but we are losing lots of people along the way which is what I expected once I saw the court timelines.
Wasn't he supposed to resign a week ago? Love these resignation predictions. Last press release was sent from his email if he was going to resign he would be distancing himself from the company not sending out press releases. Good luck with that.
Off-Topic
RIMM's spike has more to do with the release of their new operating system BB10 and the release of new phones at the end of the month.... plus 160,000,000 share short position. Any relation to FB is the same stretch that we are making between VRNG and FB.
Don't let people fool you about the Chinese economy. One man's story is just that. The truth is:
http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China
The People's Republic of China (PRC) is the world's second largest economy by nominal GDP and by purchasing power parity after the United States.[1] It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years.[12] China is also the largest exporter and second largest importer of goods in the world. On a per capita income basis, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the International Monetary Fund (IMF). The provinces in the coastal regions of China[13] tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of the economy.[14][15] As the Chinese economy is internationalized, so does the standardized economic forecast officially launched in China by Purchasing Managers Index in 2005.[16] Most economic growth of China is created from Special Economic Zones of the People's Republic of China.
China has a real economy it's not all fake. In fact the computer that I am typing this post on was made in China for Apple . Not every company is fraudulent if that were the case how did become the world's second largest economy soon to be number 1?
Rise of Central China Plan, to accelerate the development of its central regions. It covers six provinces: Shanxi, Henan, Anhui, Hubei, Hunan, and Jiangxi.
Ok Jim "I can't answer this question absolutely but the short answer is most definitely.
Short interest mid Nov 177,000 .... Dec 31 1.23 million. After Longwei increased their guidance stock spiked in high two's and quickly reversed, IMHO this is classic shorting. Not only did they make money they made a lot of it but it wasn't just them, I am certain there are many groups who benefited from what they posted.
They probably still have shorts in because the stock was halted the second time and still is.
I agree with you fraudulent companies should be prosecuted but so should fraudulent "whatever" GEO is because if you read their TOS disclaimer they hide behind everything under the sun. It won't help them if they have fabricated anything that they posted.
Longwei can launch a suit and force them to defend themselves, the outcome is not relevant, at a minmum this most likely will happen
If that's the only reason they bought it without doing anymore dd then I would say most of those people are long gone. Not sure if you were around this board when the stock broke $3 to the downside it was getting ugly.
There is no harm in speculating as long as it is stated as such. If you are making statements of fact that's another matter. Besides the stock has become quite boring lately there has been nothing of substance for quite a while. Look at the stickies I see 12/18 almost a moth ago
RBC analyst said Search is most likely what announcement is about but the actual contents is unknown.
Maybe Lang's work in Israel could involve setting up a search engine for Facebook?
CNBC talking about Facebook announcement mentioned could revolve around search
Vringo asked the Mannheim court for a preliminary injection against ZTE
Coming off a victory in the U.S. courts against giants like Google (GOOG) and AOL (AOL), Vringo (VRNG) just announced that it has filed more patent infringement suits. This time, Vringo is going global with its IP enforcement efforts by filing its second suit in the UK, on the heels of a recently filed suit in Manheim, Germany, against telecom manufacturer ZTE Corporation.
European courts can bring cases to trial much faster than U.S. courts. Vringo`s global patent portfolio, makes this expansion into foreign courts the next logical step in monetizing its intellectual property. They are also more willing to enter a court order, known as an injunction, which prohibits a company from manufacturing, distributing or selling an infringing product. An injunction is a serious threat because it has an immediate and toxic effect on the infringing company. European courts can order injunctions in as little as six months.
In Germany A preliminary injunction may be obtain within 4 weeks of apply for it. And if they determine validity the injunctions are permanent. THe patent courts consider patent infringement as a criminal act.
You did point out the videos with no response, however they do create aliases and will respond that way, check YMB and you will see what I mean
Here is some information I found about their accounting system...
"...a cutting edge ERP system, which is integrated with its accounting system to automatically debit an appropriate AR account basing on automatic inputs from the fueling system at the pumps when a customer's truck is filled up and credit an appropriate AP account when a vendor's tanker adds gasoline/diesel to the storage tanks. This way, human intervention is prohibited and mistakes in recording business transactions are minimized"
And also :
Here is a list of hotels near LPH's Taiyuan facility: http://www.17u.com/tag/shanxi-taiyuan-307/longweishihua/. Note that this is a page on a travel portal specifically for visitors to LPH's Taiyuan facility. Apparently, the facility is probably famous in Shanxi and attracts quite some business and individual visitors every week so that the travel website dedicates a hotel list page just for the facility. By showing this video the company has really raises itself above even the largest global oil giants such as Exxon Mobile, Chevron, or Philips Conoco Phillips in terms of transparency and visibility to investors because I bet very few investors including institutional ones have checked the oil wells, platforms, and other facilities of these oil producers and distributors
Dutch good work but they won't answer you or anyone for that matter they are afraid of going to jail. Everything they say on these blogs will be used against them . Kevin Chen asked them some poignant questions on Jan 3rd...no response. You asked them about the trucks you can see with Virtual Dub... no response. Anything that pertains to this case that they can't hide behind an opinion they won't answer.
There is also something else wrong with the videos. If you pause and restart when you see a vehicle fuelling up you would note that trucks and cars are filling up in a minute? That doesn't make sense. Not sure how these videos were spliced together but they leave many questions unanswered
These work for me?
I have three browsers I tried Safari, Google Chrome and Firefox. Works on all of them I am using a Mac. I also have Windows 7 and Explorer works there too. Last week I noticed Adobe updated both operating systems so maybe that's It?
Maybe flash needs to be updated ?
You mean this link doesn't work for you guys?
http://www.longweipetroleum.com/operations/storage-operations
Works perfect for me?
Well they say they are on the Chinese web site version of Longwei's Home page here. THe company will have receipts from their customers so that should not be too hard for them.
The auditor Anderson Bradshaw verified three years worth of receipts last spring and compared it with the PRC audit and it compared correctly. That's why they signed off on it.Plus the auditors would of bailed on this company long ago had they gone to the business and found no receipts to verify revenue data that's something that people seem to miss. They are not counting trucks but looking at money flow. We are supposed to believe a shady company GEO who had a huge financial gain in distorting facts and knows they can hide behind the fact that they couched their language with "my opinion" and "we believe" versus auditors who are legally responsible? Look the GEO allegations only make sense in the context they knew they could exploit a huge financial gain for themselves and their cohorts (see large short position opened ahead of piece) and they knew based on other hit pieces that the market would side with them until Longwei could prove beyond the shadow of a doubt that they are not fraudulent. UNless a lawsuit can stick (doubtful) they are laughing all the way to the bank. The SEC has to distinguish between real fraudulent companies and fraudulent attacks by aggressive shorts. They have to prosecute both ways. IF not they will lose China's financial clout. Considering the financial state of the US government they can't afford this.
Look what happened with EDU (new orient) their stock trades on NYSE was trading at $28 and sold off sharply to $10! Why... because Muddy Watters I believe talked to one of EDU's customers who said that they did not own their franchise. This turned out to be false but the damage was done. From the July 2012 bottom around $9.50 the stock has doubled but is still $10 lower than the pre-hit price. I will say this if these companies tried this kind of b/s against US based companies they would be in jail for fraud and/or forced to pay huge fines. What is going to happen if this continues is that Chinese based companies are not gong to come to the US capital markets. The SEC knows this so they are mindful of all the ramifications.
In Chinese they are called Longwei Petro Chemical.
I don't know what you are talking about. There is no 20 minute video. These two 10 minute videos have six tankers loading during the period that GEO claimed they only saw 5 for six weeks. This video alone proves GEO lied. If you say I don't believe the video then you have to question GEO's videos too.
Briefing.com on Friday concluded that this proves GEO lied in their story.
Kevin asked GEO some specific questions on Seeking Alpha, GEO will not respond. Draw your own conclusions. I followed other hit pieces that GEO has done and this is their m/o they won't respond to valid questions.
Geo, needless to say I was shocked when I read your article this morning. As you said, this is probably the most shocking and unthinkable fraud case ever in Chinese small cap sector that fooled all investors including me. While I am indecisive on which side to believe until I hear the company’s response, I still cannot believe the conclusion you made that this company is a complete fraud because several things just don’t make any sense to me with that conclusion. Here are some key questions I have for you that I hope you can provide reasonable answers:
1. Even after reading your article, I am still not completely certain on assertion you made that Longwei could not have had Taiyuan Economic and Trading Company paid all its taxes. Regardless of which subsidiaries paid the tax, as long as the company paid that much tax (and the company provided photo-copies of the tax payment records, which their auditor claimed have fully verified with tax authority I believe), wouldn’t it prove that the company did generate that much revenue during fiscal year 2012? This simple point, if true, overthrows the conclusion that the company does not have any business running.
2. If the company is a complete fraud and just wants to steal shareholders’ money, why would they have spent so much time and money to do things such as completing the tax reconciliation, hiring two IR companies, paying Redchip to shoot an extensive onsite interview video and then subsequently a TV interview over the past one year or so to communicate to investors? Unlike some Chinese companies that were determined frauds, Longwei has not issued significant amount of new shares (except for the relative small amount that were issued for executive and IR compensation). What the CEO has to gain by spending so much time and effort to prove the legitimacy of the company?
3. According to what the company shows on its website, it does have oil wholesaling and distribution license (which you seem to agree from what I can see in its article). Evidences so far suggest that the company’s subsidiaries actually own the three facilities (which you also seem to agree from what I can see in its article). Now, even if they do not have that high level of business activities they claimed to have, shouldn’t they still be able to sell quite significant amount of oil with the licenses, facilities, and money they got when going public? Oil is a commodity that is really easy to sell. Do you really believe that they are that bad of business people that are not able to sell one truckload of oil per day?
4. The two biggest insider shareholders own about 66% of the company. So, every dollar they steal from the company 2/3 belongs to them anyways. In such a case, combining with point 1, 2 and 3, why wouldn’t they run a legitimate business but instead spending so much time, efforts, and money to keep their stock listed and at the same time doing the grand crime to steal money from investors? Even if they are not put into jail for committing such a crime, I don’t believe they can keep on running the three facilities and own the licenses. If I were a client or supplier I wouldn’t do any business with them anymore, and I would imagine that China government agency may withdraw their licenses. So, it looks to me that they would be giving up the business they’ve spent over 17 years to build. That reward/risk ratio for them to commit such a crime just doesn’t look good to me.
5. You said that your team spent about 50 days in Taiyuan and Gujiao facility video-taping the activities, but you only show 3 days of videos for each facility. Are you hand-picking the days that happened to have lower business activities?
I’d appreciate your feedbacks to these questions. Thanks.
Kevin
BTW the more I look into the GEO piece the more I am convinced it is pure rubbish. GEO hires some Chinese nationals to take some videos of Longwei's operations. The cameras are lousy and the angles they chose are wrong. Looking at the original videos you can see by their own diagrams that it would be impossible to capture trucks refuelling from them. GEO proved this themselves in their rebuttal video they have another angle unfortunately most of the video is pitch black. No regulatory body will use this video to initiate prosecution. Does LPH have to prove themselves, yes they do because if someone calls you a murderer in public you have have to defend yourself.
Moving on in digging through Chinese web sites I found the company to be consistent with a thriving operation. They have recommendations from Petroleum associations, the actual licenses that are posted only in words on the english site can be viewed in Chinese. Also their customers are some of the largest coal operations in the world.
Xishan coal electric, and Xishan gujiao base, and Zhang Ze power, and country electric wuxiang power plant, and Shanxi coking factory, and minfeng petrochemical, and Taiyuan Yan Yu petrochemical, and too coal gasification company, and Huozhou coal electric company, and provincial gas station, customer, involves Shanxi of all city, and County.
These are the companies that have relations with Longwei. I hope it can be proven that GEO fabricated their work for personal gain. As I said short interest rose dramatically from 177,000 to 1.23 million in a month and a half and more shorting on the spike where guidance was raised. Some of the other companies like GEO are being discredited and prosecuted right now. Andrew Left , Citron, Muddy Waters and others are no longer in the game. I am hoping that GEO gets hit with a big law suit and at the least forces GEO to defend themselves. I realize that because of the disclaimers they make it is hard prosecute but put them through the mud anyway
Read about how GEO handled LLEN and how they misrepresented facts:
THis is a long article so I will provide the opening and closing remarks, you can read the whole disgusting mess that show how GEO operates there and here:
LLEN: Is GEO Scammed Or Part of the Scam?
GEOInvesting (“GEO”) has in one month released five OTGDD reports (Jan 13, 17, 19 & 20, 2012 and February 16, 2012) questioning LLEN’s ownership in Ping Yi mine and followed by alert criticizing the Company’s press release on February 17, 2012.
If you recall, I did some due diligence on GEO’s above OTGDD and had my comments posted on its Instablog with Seekingalpha on January 23, 2012 (http://seekingalpha.co...), not to defend for LLEN but to let readers have another perspective and disclose the alleged motive behind this research house. This time is no difference. What’s more is to let readers to know even better how unacceptable the quality & standards of GEO research team is when performing OTGDD.
Concluding remarks:
Everybody in one way or another has some unpleasant track record in the past. LLEN has no exception. However, we can see how LLEN evolves from its displeasing remarks into a company with great vision, precise direction, prominent strategy, focused business objective, niche market and right products, and determined management. On the other hand, GEO seems to have reasonable good track record. Likewise, its sustainability is not guaranteed. I can see how GEO disgraces itself from the series of hit-pieces against LLEN. Its reputation is deteriorated like a rotten apple with OTGDD works without factual support or verification.
Is GEO Scammed Or Part of the Scam? In any event, LLEN is the Victim and GEO is a Lousy Research House
The whole article here:
http://seekingalpha.com/instablog/360252-the-geoteam/320071-true-owner-and-legal-representative-of-the-ping-yi-mine-speaks-out-to-expose-l-l-energy-fraud#comments_header
Take a look at the video posted in the GEO hit piece on seeking Alpha:
Tiyuan Facility Enterance 10/29/2012
This is their retail gas station NOT where the trucks come in . They filmed the wrong entrance. To actually see the tankers refuelling would require the cameras to be on the other side not where they positioned them (look at the diagram in the article). Maybe their Chinese friends who took the videos misunderstood them because these videos could not capture the tankers being refuelled
IN their rebuttal video posted yesterday
http://vimeo.com/57239097
The video shows at the beginning TANKER FUEL ENTRANCE. It is dark and you can't really make it out clearly. However what you can see is that this camera is in a different location than the one posted in the hit piece.
Agreed but if your primary motivation was money and you had shorted the stock in a major way ahead of time, then you would do what GEO did to maximize profits. They knew that just the headline alone would cause people to sell and/or short
Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date
So they did what they felt was necessary to maximize their profits on a gain. who cares about the innocent shareholders who bought this company based on audited results and publicly available documents. It's all road kill
Take a look at my previous post about LLEN. The company invited to answer all their questions and GEO refused. They are not interested in the truth just a way to exploit the system
Also with respect to short positions take a look at this picture.
Short interest went from about 100,000 a few months (Nov) ago to 622,000 December 14 and then more than doubled in 14 days to 1.23 million. An increase of 85%, tell me this is not an incentive to do what GEO did?
Short Positions (12/31/2012)
1.23 Million Shares
Change from Last
+84.88%
Percent of Float
3.59%
For People who still don't believe that GEO distorts facts. Look at the case of LLEN
They shorted the stock based primarily of what they claimed was the lack of ownership of a major asset.
GeoInvesting Stands by its Claims that L&L Energy does not Own the Ping Yi Mine: More Color Provided
We understand that some investors have attempted to discredit our research, observing differences between the mining permit number/address on the official Ping Ying Mine chopped business license and Mining Permit compared to web sites posting disclosing the sale of the Ping Yi Mine. Conclusions based on this observation are baseless.
The Mining Permit number issue in no way unsubstantiates our findings. Our research is based on a mountain of findings.
Our research was performed using the official Business License and Mining Permit posted by the owner. Website postings are secondary to our conclusions, except for the sale information itself.
We have obtained an official chopped SAIC filing of the Ping Yi Mine that clearly shows that LLEN does not own this mine.
Most importantly, the press release issued by LLEN on Jan 17, 2012 states that, "Regarding the sale notices mentioned by GeoInvesting in its article, the Company never authorized or prepared such sale notices. Accordingly, the Company does not know the source of such notices." In other words, it does not dispute that the Ping Yi Mine is for sale.
The only issue regarding the difference in addresses is that the owner refers to the older address of Ping Yi Mine (we will address below).
We note that outside of a possible typo or human error regarding the Mining Permit number, there are no discrepancies in our argument about the ownership of Ping Yi Mine.
We stand by our conclusion that LLEN does not and never did own the Ping Yi Mine. Investors who do not embrace this conclusion are grasping for strings and playing a dangerous game.
How did they sell something they supposedly did not own?
In April 2012, we reached an agreement to sell Ping Yi mine to its original owner, Mr. Bao Guo Zhang, for $ 31,200,000 USD, treated in part as a prepayment by the Company for future Ping Yi coal purchased by the Company and in part as a prepayment by the Company for future use of the Ping Yi’s coal washing facility.
Interesting article from the Financial Times
People wonder why Longwei isn't saying more. This article might help you to understand the reasons. Carson Block also makes an interesting comment. "When you have a company with a relationship with a sovereign wealth fund – that’s something we will have to think about for next time". If the company is a fraud what difference does it make? The answer is it makes it easier to fight a weaker company who is more prone to give up rather than fight. Also read about what Andrew Left did and what GEO is doing right now below.
By then it had strong financial returns, and its negative report on any Chinese company with any reason would cause its stock to crater. It was no longer necessary to be right! Citron could short a legitimate stock, write a negative report, others would short or sell in a panic, and then Citron could pocket a nice profit quickly, whether the report was truthful or no
Good work on this. What software did you use to see the video clearer?
The amount of time it takes is not relevant what is relevant is that the information is credible and accepted by the exchange. You have lawyers from two countries, auditors, regulators etc these things don't just get pulled out. Everything has to be done according to the legal requirements. Have you ever dealt with a lawyer? They don't work on time , they work on getting it right irrespective of how long it takes.
How do you know what they are providing to the exchange?
Also GEO said they were sending all their videos to the exchange if they were credible the SEC would have stepped in by now, however the exchange is allowing LPH to update on their schedule that's why it is a T2 halt.
Actually its the conclusion they derive from what they say they saw that is the problem:
7 weeks (October 26 to December 13, 2012) of 24/7 time-lapse video surveillance of LPH's Taiyuan and Gujiao fuel storage depots detected only 5 tanker trucks fueling at the two facilities, combined.
In recent press releases and 8-K filings, LPH exaggerated its main Taiyuan and Gujiao facilities' November 2012 sales by a factor of over 800 times.
Either GEO lied about taking the videos 24/7 for 7 weeks or they lied about reviewing it because it doesn't suite them.
IN today's Briefing.COm they suggest that GEO lied:
12:42PM Longwei Petroleum releases on-site security videos to refute false claims (shares halted since Jan 3, 2013) (LPH) 0.62 : Co announced that it has posted its own on-site security video clips that refute the blog-post defamatory claims of Geo Investing. As previously stated, co believes the Geo Investing report contains numerous errors of facts, misleading speculations and malicious interpretations of events. Nevertheless, the co and its legal counsel in the U.S and the PRC, as well as its auditor are reviewing the allegations and management has fully cooperated in the investigation.
One of the false allegations presented in the Geo Investing report includes a claim that Longwei's wholesale fuel sales are "virtually non-existent." The report purports to have taken 7 weeks (Oct 26 to Dec 13, 2012) of time-lapse video surveillance of the co's Taiyuan facility, which alleges that only 1 tanker truck fueled at the Taiyuan facility during the entire 7-week timeframe. Co is in the process of reviewing its on-site security video for the 7-week timeframe, however, it has posted two 10-minute video clips on its website that shows 6 tankers trucks at the Taiyuan facility being fueled during the Geo Investing report timeframe. Longwei's on-site security video proves the Geo Investing video and claim are false.
The misleading video and claims posted by Geo Investing is only one example in their inaccurate report on the Company. Longwei will be sending its security video to the appropriate authorities for review and prosecution.
I am not sure what relevance another GEO article will have. The stock is not trading and won't until the regulators are convinced that this is not a fraud. The GEO hit if it comes will just preach to the choir. Those that are short or believe GEO will find it favourable, those that are long will tend to find it less favourable and at least wait for full disclosure from the company. If the stock trades again soon and the regulators give it the go-ahead who do you believe the SEC or GEO who is a declared short that is the question one would ask.
From Briefing.com
12:42PM Longwei Petroleum releases on-site security videos to refute false claims (shares halted since Jan 3, 2013) (LPH) 0.62 : Co announced that it has posted its own on-site security video clips that refute the blog-post defamatory claims of Geo Investing. As previously stated, co believes the Geo Investing report contains numerous errors of facts, misleading speculations and malicious interpretations of events. Nevertheless, the co and its legal counsel in the U.S and the PRC, as well as its auditor are reviewing the allegations and management has fully cooperated in the investigation.
One of the false allegations presented in the Geo Investing report includes a claim that Longwei's wholesale fuel sales are "virtually non-existent." The report purports to have taken 7 weeks (Oct 26 to Dec 13, 2012) of time-lapse video surveillance of the co's Taiyuan facility, which alleges that only 1 tanker truck fueled at the Taiyuan facility during the entire 7-week timeframe. Co is in the process of reviewing its on-site security video for the 7-week timeframe, however, it has posted two 10-minute video clips on its website that shows 6 tankers trucks at the Taiyuan facility being fueled during the Geo Investing report timeframe.
Longwei's on-site security video proves the Geo Investing video and claim are false.
They could also offer a buyback at $3.00. That would squeeze the shorts for sure. Regardless of whether you believe the company if they are going to give you $3.00 a share people are going to buy this.
There was talk of taking this private on the last cc. They could also offer a on-time and regular dividend which I have heard they are considering.
We will have the year end numbers on Feb 15th....that's when they update the "tuts" positions.
Just looking at the numbers on the close almost 500,000 shares trade on close, that's not retail.