Longwei Petroleum (fka LPIH)

[Drexion2004]

1) What gross&net-income margins do they expect from revenue in the second facility?

2) What will be the impact of direct-piping (ie: no transportation costs) to many major customers near the second facility be relative to question #1?

3) What are their profit margins for each type of product they sell (Assuming they did not buy it cheaper and stored it of course) and what do they expect will be the product-mix-percentages for the second facility? What is the product-mix-percentage for the first facility currently? Do they foresee any new agency (super high margin) income from the second facility geographical area?

4) Does LPIH have any contracts in place currently to begin servicing customers at the second facility? How many and what magnitude are these contracts for? (Relates to how quickly they can ramp up usage of the facility)

5) Exactly how much cash do they plan to raise (in order to fill tanks/etc of second facility)? Would they consider trying to raise this cash via a rights-offering to current shareholders? Similar to what BBX bank just did.

6) Why does their 2011 EPS estimate indicate a 25% net income margin? Is that a typo on the revenue side or a mistake on the net-income side?

I could go on but I figure thats enough ;).

-Fernando