Replies to post #3643 on Longwei Petroleum (fka LPIH)

[silverline]

Good summary. I was surprised a little that there were not more questions - but how much do we really need to know about a business that is as simple as this! Guidance is still on for 500MM sales, margins are still going to be in the 20 range, and diluted eps will still be somewhere around 60 cents, give or take.

The only thing that these overhanging warrants do, is get a bunch of speculators all bent out of shape because a) they don't understand, and b) they were trying to make a quick hit and flip. It is totally an emotional issue, void of any objective analysis of the situation. That's why Toups didn't spend a lot of time on it. It does not affect the day to day success of the business in ANY WAY! All it affects are speculators looking to make a quick buck - some win and a lot lose! Those investors willing to dig a little deeper and expend some effort to understand what they are investing in, will find a tremendous opportunity for growth, and long term share price appreciation.

I used the opportunity to add another 3,000 shares to my holdings, because we won't likely see it under $3 for very long.

This is a solid investment for anyone with a 12 month or longer time horizon.

[faxedreceipts]

Excellent recap. One thing missing though. Toup talked about how the Chinese Government is promoting "consolidation" within the energy sector and alluded to future purchases of additional storage facilities. LPH is the whale among resellers of finished oil products and it makes sense that it will become a much bigger company as the consolidation plays out.

One other great point, the two new customers were acquired because of the shortage that's going on in China. LPH, for the last 17 years, has excellent relationships with the oil refiners and aquired the new customers because the competition didn't have the product. LPH's storage capacity is second to non.