L&L Energy, Inc. LLEN

opsssssss ... Weishe Mine

[homestus]

according tle LLEN PR about the Weishe Coal Mine Acuisition:

"US-based L&L Energy has acquired a 51% stake in the Weishe coal mine located in China's Guizhou province for a total consideration of $16.2m."

https://www.mining-technology.com/news/newsll-to-acquire-51-stake-in-weishe-coal-mine/

In todays 10Q ... they write:

Under the Agreement, the purchase price for 51% of the ownership interest in Weishe Mine is about US$9.7 million, which will be paid in full by issuing 3,000,000 shares of common stock of the Company (“LLEN Stock”).

.".. Owner Union Energy will receive three million L&L shares at $5.396/share for the coal mine. " was this statemen an attempt to pump the share price by LLEN? ... ... so .. the fair value of the WEISHE mine is 9.7m .. and not 16.2!!

[Cool_Scirocco]

Obviously, the stock price wasn't $5.40 on February 3, 2012, so this was a mistake in the January PR announcing the deal. The statement you quote from the new 10-Q was first published in the 10-K filed on 7/31/12, so the correction isn't new or unkown. From page 86, : Under the Agreement, the purchase price for 51% of the ownership interest in Weishe Mine is about US$9.7 million, which

[homestus]

  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

[maxlogan]

This is all incorrect.   The difference is between (1) the negotiated value between a buyer and a seller and (2) how the SEC requires one to show the accounting according to GAAP.   I can sell my car in a negotiated transaction with another party for $50,000, but the redbook value may state that the value is roughly $20,000.  My ability to get $50,000 is a factor of my negotiating