Replies to post #2974 on Longwei Petroleum (fka LPIH)

[bradford86]

I would say that they are not sustainable for guidance going past 2011.

They should work for 2011 earnings estimates though.

80% growth isn't sustainable, but i could be wrong. maybe they have places where they could easily expand to from operating cash flows.

note that operating cash should be able to finance stuff from here out.

plus warrants = lots of cash

maybe they'll start cutting dividends? wouldn't that knock up the stock price? yes it would. say they cut a 10 cent dividend, 2.5 cents/quarter

that's roughly $9.86M/year or roughly 13% of their net income for 2011.

if they cut a dividend like that, the current yield would be roughly 5%