Longwei Petroleum (fka LPIH)

[Traderfan]

A couple of things here

First I have to say I would be very surprised if this is a complete scam more or less. Not that I haven't been surprised in the past in this sector. That's why you only play with money you can easily afford to lose in these stocks. I only have one single chinese stock where I'm in higher than 1% of my portfolio.

Second I think it's totally ridiculous if Redchip wants to distance themselves now from LPH. If the company is indeed a fraud and they wanna tell me they didn't know anything (and Toups of course as well) then I have to laugh. That's hilarious given the fact how often Toups has been on site.

Third, I don't get why so many longs here are still in heavy right now. The report was sent out to premium members a few minutes after market open and I posted here that a report is out (of course I couldn't post the report itself since it's for members only in the beginning) at about 9.40am while the stock was still trading heavily around 2 bucks. Easily enough time to get out. This is a case (and has always been in this sector) where you sell first and ask questions later. Always so far. So even if one didn't see the entire report until it was posted on Seekingalpha, there was plenty of time to get out at small losses today. And even after it was officially posted the stock was trading in the 1.70-1.80 range from looking at the chart.

Of course anybody who wasn't in front of the computer in the first few hours today had really bad luck. Let's see how they react. I agree it looks unlikely now that they are legit but we will know it soon enough.