Longwei Petroleum (fka LPIH)

[rru2s]

Growth summary (edited from prior post for minor corrections to EPS and dates of filings - better to be accurate!):

LPH previously executed a big expansion in 2009 from one facility to 2 facilities, which grew EPS from 0.28 in 2009 to 0.61 in 2011.

LPH is a longstanding entity - in business for 17 years, CEO has been with company for 17 years.

LPH has never over-diluted shareholders during previous expansions: Note the big picture of a HUGE EPS growth story - examining the use of capital and the extent of EPS growth associated with the expansion at that point in time:

Consider this big picture analysis of historical LPH EPS/sharecount:

Examine page 6 of this SEC filing from September 5 2008:

http://www.secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=6140629&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

Year…LPH Sharecount…Annual EPS
2003………69,000,000………0.03
2004………69,000,000………0.10
2005………69,000,000………0.12
2006………69,000,000………0.21
2007………69,000,000………0.17

And page F-2 of this SEC filing from September 13, 2009:

http://www.secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=6838154&companyid=80123&ppu=%252fdefault.aspx%253fticker%253dLPH%2526amp%253bauth%253d1

Year…….…LPH Sharecount….Annual EPS
2008……….75,739,000…………………..…….0.27
2009……….78,524,000…………………..…….0.28

And page F-5 of this SEC filing from September 13, 2011:

http://www.secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=7478332&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

EPS increased from $0.28 to $0.62 and sharecount change from Gujiao (startup Jan/2010 to full speed June 30, 2011):

Year………LPH Sharecount…Annual EPS
2010………95,262,000………………………0.43
2011………101,684,000……………………0.62

And page F-3 of this SEC filing from September 13, 2012:

http://www.secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=8821523&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

Year………LPH Sharecount…Annual EPS
2012………101,773,000………………………0.61

If warrant redemption used for Huajie startup, shares: 100.7M to 112.2M & EPS increases $0.61 to $0.96:

Projected $0.96 EPS = (current sharecount EPS estimate of $1.07 EPS) x (100.8)/(100.8 + 11.5)

Projection for FY 2014 (assuming worst case all of 11.5M warrants redeemed causing 11% dilution, which are used to build inventory at Huajie):

Year………Projected Sharecount…Annual EPS
2014………112,273,000………………………0.96

SUMMARY:

Shareholders saw a HUGE increase in EARNINGS PER SHARE between 2009 and 2012 (0.28 to 0.61), largely attributable to Gujiao second facility acquisition.

Exceptional future EPS growth will also be realized with LPH for those who buy now and hold through Huajie ramp-up (0.61 to 0.96)