Replies to post #56081 on China Growth Stocks

[GorillaGorilla]

LLEN - the order of events.

31st August
- CC where they got berated by shareholders to improve accountancy

15th Sept
- An 8-K confirming that they re-hired Kabani & Co (vote Sept9th)
- Closes $7 and change on NAZ boards biggest decliners
- Sept CAO announced after hours.

16th Sept
- Task Force to Evaluate Potential Appointments of Auditors
- CAO has 3 Months to recommend [3]


Other Interesting events

Aug 25th
- PR saying our PPS is too low and we are looking at debt instruments (Previous night close 8.58) [4]

Sept 13th
- Management has been excising options [5]


Options
- Credible Accountants
- Bank Loan
- SOX
- Acquisitions


rich

[1] http://www.sec.gov/Archives/edgar/data/1137083/000116854210000054/k_vote2010.htm

[2] http://www.prnewswire.com/news-releases/l--l-energy-announces-new-chief-accounting-officer-102988139.html

[3] http://www.prnewswire.com/news-releases/l--l-energy-commissions-special-task-force-to-evaluate-potential-appointments-of-auditors-103034194.html

[4] http://www.llenergyinc.com/files/LLEN_20100925_Prelim1QResults.pdf

[5] http://www.prnewswire.com/news-releases/l--l-energy-announces-management-share-purchases-102759854.html

[6] http://redchipnews.com/shorts-will-rue-the-day-they-shorted-llen-042/

[GorillaGorilla]

LLEN - hesitancy to acquire top auditor

Unwilling to pay for a top 4 is a justifiable worry.

The only argument I can see in their defense, I'm not saying I believe it, is that they have been focusing on beefing up their internal controls - getting CAO etc. We've seen CNYD and DYP stumble trying to get a bigger auditor and perhaps they want to make sure they had everything in place before getting in a top firm?

rich