With LGOV making up to $400,000 guaranteed profit per month starting May 18th, (as expressly provided in the Shanghai Oil contract)and the o/s being what it is, even with 30m additional shares going to Shanghai Oil, and assuming a very conservative p/e ratio, the share price should increase tenfold within a relatively short time frame. Though ever wary of fraud and PR fluff, I for one can only assume that the parties intend to honor the contract because: 1) to file a fraudulent 8K (which contains the contract) constitutes several serious Federal felonies punishible by lengthy minimum mandatory prison sentences for all of those involved in the conspiracy; 2) this "sweetheart deal" for LGOV is understandable and explainable on two levels. First is the Chinese government's desire to meet guidelines for admission to the WTO. Second is the huge windfall to be realized by the individual principles of both companies who negotiated the contract; 3) with a contract along these lines, the Chinese will allow an American energy firm to participate in providing China's burgeoning oil needs, while continuing to prevent market penetration by major oil firms which pose a perceived threat to Chinese autonomy and its official socialist/communist philosophy. The Chinese will be able to maintain a significant degree of control over LGOV and profit as LGOV prospers.
On the other hand, I could be completely wrong, the entire contract could turn out to be a sham, and none of this makes any sense. Things which seem too good to be true usually are. But I'll be increasing my position in LGOV steadily as May 18th approaches. I would appreciate constructive commentary or dialogue from those more experienced in these matters.
AI
