L&L Energy, Inc. LLEN

RE: RE: Guizhou tight coal supply confirmation

[barsolid]

Yep, you are right though I wish it were otherwise.  Race against and Chinese stock Analyst are bashers and are dishonest despite what they say and I have them on ignore.  The tax was specifically imposed in order to make it more expensive for exports to ship the Guizhou cola out of the province.  They did this over a year ago (I don't rmember the exact timing).  They are lowering this tax for two reasons.  ONe is that it appears to be mostly unnecessary.  There is no much outside demand for Gujizhou Coal at this time so applying a tax seems counterproductive.  Also there seems to be an adequate supply in Guizhou province right now.  I disagree with you just a little.  There is definitely a coal glut in the Central and Northern regions of China due to the slowdown in electrical and steel, but in Guizhou itself I believe that the supply/demand is fairly well balanced.  remember the governement had many mines shut for quite a while so the glut that built up other places didn't occur in guizhou.  At least one good thing about the mine shutdowns.  As I have been saying for at least 6 months and maybe longer, this company is local and province specific at this time, Guizhou is still growing substantially, even witht he Chinese slowdown and if Llen can get its act together the stock should go back up to the $5-6 range.  And as TJ always states, the macro view has to at least support this to some extent.

    On another point the stock jumped due to the announcement by the PRC of extensive road and transportation investments.  This drove many coal and industrial stocks higher and Llen went along for the ride.  I am not really sure that this is sustainable.  I'm still looking for a dip and a buying opportunity. glta