Commodity play setup for this week: $LPH
LPH, an oil wholesaler with a P/E of 1.9 and who is about to acquire a third facility to expand their sales and capacity by 80%. LPH just issued on Monday September 24 an official PR news release that their $106 million deal for Huajie Petroleum is going to close within 7 days. LPH would not have issued this imminent announcement unless they were 100% certain, since otherwise they would basically be inviting the SEC to immediately open an investigation into false and misleading statements.
So what do we have in LPH?
1) A company on the cusp, within 6 days of closing an acquisition that represents a ready-to-roll, turnkey wholesale oil sales operation that increases their capacity by 80% within 1 year.
2) A company in China with a current P/E of 1.9, but which is one-of-a-kind in having just published an accounting reconciliation of their SAIC tax filings and SEC filings, demonstrating both transparency and legtimacy in their earnings statements
3) Without diluting shareholders one single share, managed to complete a $106M acquisition using only internal profits.
4) Only ONE MONTH away from having their prior acquisition stock warrants (from the 2009 Gujiao acquisition) expire worthless, thereby reducing diluted sharecount from 103M to 86M.
AI
