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L&L Energy, Inc. LLEN

"L & L Energy Inc is currently engaged in the business of coal mining, coal consolidation, and wholesaling in the People's Republic of China and its operations are conducted in the coal-rich Yunnan Province in Southwest China."


OTCPK:LLEN - Post by User

Post by Cool_Sciroccoon Sep 10, 2012 8:58pm
177 Views
Post# 20344904

IMO, the report is pretty solid

IMO, the report is pretty solid

Revenue and gross profit increased sequentially from Q4/2012 despite the slowdown in China.

EPS was good, but I think the main reason that it didn't exceed the $0.20 from Q4/12 was because more of the income was from non-controlling interests. This will probably vary from quarter-to-quarter, depending upon which mines supply the largest percentage of revenue.

They appear to have received some repayment on the loan to Bowie, so that's reduced some of that risk.

They also appear to be receiving coal and coal washing as payment for the Ping Yi mine per the sales agreement. IMO, this helps to deal with a "bashing point" (that they won't get anything from the Ping Yi sale).

All-in-all, I think the report is pretty good, and given the right mix of mines and an improvement in China's economy, an EPS of $0.80 - $0.90 for FY2013 is not out of the question. $1.00 might even be possible.

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