Bad news and a definite setback, but doesn't change anything.
As I have commented before this is a catalyst play. My view is the only reason to sell and bail out is if the catalysts are unsuccessful. Having a timely audit and reporting is not one of them. Make no mistake it is a BIG let down on the faith I have in the company, but the wording and lack of refute by the accountant seems to indicate for whatever reason they did NOT do the work vs. they found fraud and then excused themselves out. If the latter was true the accountants would have been the ones discharging themselves and not admit to basically being negligent not doing any of the work they were hired to do. Not a good look for Chang and company, but don't see anything nefarious going on with the accounting since they have ALWAYS reported audited financials in years past.
There is no indication the mine is still not under Phoenix's plans still and/ or Teishan oil is not continuing to recover like the rest of China domestic output. Those are the catalysts that made me invest here and they are still a go as far as I know. So nothing changes as far as I'm concerned.
In the end, with some 1.5 MILLION preferred shares DS Chang got last year AND 60 MILLION shares for Wandi owner they PERSONALLY have more to lose with SP going down then any of us. So until I see a sign they are jumping ship I am not going anywhere.
This was ALWAYS a high risk play, but 10x potential does not come around very often. I expect to give them 2021 which gives them enough time to get all this done. In other plays in past I have lost out as I simply got frustrated by making some arbitrary deadline in my head instead of letting things play out.
Good luck on everbody's decision, but I'm in this until evidence a catalyst fails to be met.
