Replies to post #6394 on Longwei Petroleum (fka LPIH)

[rru2s]

Consider the big picture of EPS growth - you can't just cherry-pick an isolated SEC filing and conclude that it was bad or good for shareholders without examining the use of capital and the extent of EPS growth associated with the expansion at that point in time:

Consider this big picture analysis of historical LPH EPS/sharecount:

Examine page 6 of this SEC filing from September 5 2008:

http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=6140629&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

Year…LPH Sharecount…Annual EPS
2003………69,000,000………0.03
2004………69,000,000………0.10
2005………69,000,000………0.12
2006………69,000,000………0.17
2007………72,643,636………0.25

And page F-2 of this SEC filing from September 28, 2009:

http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=7478332&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

Year………LPH Sharecount…………Annual EPS
2008………75,739,000……………………0.27
2009………78,524,000……………………0.28

And page F-5 of this SEC filing from September 13, 2011:

http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=7478332&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

EPS increase from $0.28 to $0.61 and sharecount change from Gujiao (startup Jan/2010 to full speed June 30, 2011):
Year………LPH Sharecount…………Annual EPS
2010………95,262,000………………………0.43
2011………101,684,000……………………0.61

And page F-3 of this SEC filing from September 13, 2012:

http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=8821523&companyid=80123&ppu=%252fdefault.aspx%253fformtypeid%253d%2526amp%253bindustryid%253d%2526amp%253bticker%253dLPH%2526amp%253bauth%253d1

Year………LPH Sharecount…………Annual EPS
2012………101,773,000………………………0.61

If warrant redemption used for Huajie startup, shares: 100.7M to 112.2M & EPS increases $0.61 to $0.96:
Estimated $0.96 EPS = previous estimate of $1.07 EPS x (100.8)/(100.8 + 11.5)

Projection for FY 2014 (assuming if 11.5M dilution used to build inventory at Huajie):
Year………Projected Sharecount…Annual EPS
2014………112,273,000……………………0.96

SUMMARY:
Shareholders saw a HUGE increase in EARNINGS PER SHARE between 2007 and 2012 (0.25 to 0.61).
Tremendous EPS growth will also be realized with LPH for those who buy now and hold through Huajie ramp-up (0.62 to 0.96)

[faxedreceipts]

Hey, keep working hard on getting the price down. My dry powder will compete for the same shares others are hoping to obtain at lower prices.