Longwei Petroleum (fka LPIH)

[xlt leader]

Its one thing for a company to be fraudulent but quite another for a company to be deficient yet attacked to the same degree using front-running tactics and making general accusations that distort the facts. In reading an article on Silvercorp metal that Cairns attacked using the same tactics, the Forbes writer concluded that 70% of what Cairnes said was "fluff". His conclusion was that the grades of the ore were inflated. Is that fraud as Cairnes alleged? The intent was to destroy the company and its shareholders with it. It did not work but has marred the reputation obviously. How is inflating ore grades any different that a a tech company giving guidance on sales that turn out to be highly inflated and then providing excuses as to why they were? Somewhat like what Oracle recently did and then blames their sales staff for dropping the ball. Can you imagine a hit piece on a tech company using the same metrics it would never happen yet the analogy is there.

Ultimately if Longwei is proven to be a fraudulent organization I will be the first to congratulate Geo/Cairnes. If however they are proven to be deficient in their public information but otherwise run a legitimate business like Silvercorp is this acceptable? Are the rights of freedom of speech more valuable that the individual investor who will/has lost substantial amounts of money here? These are questions each person should ask themselves. I am not taking sides here. If Longwei proves a viable business then GEO/Cairnes should be punished to the full extent of the law, but will they? If they are proven to be a fraudulent company the individuals to the extent they can be should be prosecuted fully.