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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

Comment by homestuson Sep 10, 2012 10:54pm
110 Views
Post# 20345198

RE: RE: opsssssss ... Weishe Mine

RE: RE: opsssssss ... Weishe Mine

 

Well ... from an operational point of View ... the company seems to be doing fine ... finally! ... The problem is the loss of credibility the sufferred and the inability of the management to gain it back! 

 

I prefectly recall LLEN officers saying that the CEO of Union Energy was an ex Invetmet banker and ,,, because of his background and the deriving ability to recognize when a company market price in undervalued ... ... 

 

 he had THEREFORE been willing to accept shares of llen at a 80% premiumo over the market price ... in exhange of the 51% stake of the weishe mine!

 

SO ... We can't say ... "it was a mistake in the PR" 

 

Now ... when reading the 10Q (I did not read the 10k since I had no position in LLEN ... my mistake ... so ... I agree with you... It's not a new issue) ... ... I saw that the price agreed for the acquisition of the mine was 9.7m USD! 

 

This is the reason why LLEN can not gain back the market trust!! ... The news release was not a mistake ... they tried to manipualete the public perception about the deal and LLEN shares correct valuation! 

So... the fair value of the Weishe stake was 9.7m USD ... but they said they paid it 16m US ... to make it seem to possible investors / investors ... that a third party was willing to accept LLEN shares at a high premium over the market price!! 

when now we know ... it was an inflated price ... ... 

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