Replies to post #2544 on Longwei Petroleum (fka LPIH)

[Watchdog19]

It all depends on how quickly the government readjusts prices. With crude off 20% since the end of April, if it doesn't recover quickly the government could very quickly lower the retail price below what LPIH thought was a good buy. The fact that they loaded up on inventory is exactly why I think they could get stuck with higher priced inventory. I'm not saying I'm ready to sell my position, just that I expect a negative impact to some degree.