China Trading Stocks

[rru2s]

LPH 10Q shows 16.5% net income growth YoY due to oil demand rebound in China, which is expected to get stronger in this quarter.

LPH earned enough last quarter to have $23.7M cash to close the acquisition of Huajie, support inventory levels at their 2 facilities in Taiyuan and Gujiao, and still have $14.4M cash on-hand leftover as of 09/30.

At this rate of cashflow generation (roughly $38M per quarter), LPH will not need to consider any type of bank loan or other financing to raise around $50M to fully stock Huajie Petroleum inventory levels within a timeframe of 1.5 to 2 quarters.

Rampup will proceed faster than originally projected, IMHO.