China Growth Stocks

[GorillaGorilla]

LPH - reiterated guidance at the CC.

Here's my notes of Q/A

-How is shortage affecting your business?
Experienced no shortage. Led to more business. Reason they signed 2 new contracts.

- Guidance?
Staying with guidance and feeling confident and hoping to add. Keeping with it for now.

- Uplist?
Board considering that – NAZ is $4 stock price but is consideration.

- Oil price change in terms of earnings and revenues?
Price controls limit gain. Gives a 1 or 2 points . Pricing set on 22 day pricing. As prices rise they fill up tanks before reset. No wild swings that impact.

- Can you explain the warrant liabilities?
Arrived from financing for Oct 2009. Based on valuation of black-shoals model. Takes various factors. Don't recognize a gain or loss in your own stock. Until exercised there are no adjustments. Negotiated with accountants but can't do anything. As time during goes by it decreases. As warrant exercises convert that liability will reduce.

- Gross Margin - decline Q/Q - anything for this beyond seasonal
Seasonal an price movements up and down causing a point or 2.

- Revenue were down from previous Q form 7% - seasonal affect?
States is up in summer. In China less summer vacation travel. They don't use as much.

- Capacity utilization?
35% range – two new customers are using the [new - I think] facility.

rich