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The plunge in shares of Longwei Petroleum (LPH -55.2%) is attributed to a negative article from...

The plunge in shares of Longwei Petroleum (LPH -55.2%) is attributed to a negative article from Geoinvesting.com, which writes that "the company's purported business operations are massively overstated and a brazen fraud, on an order of magnitude unmatched before by any China-based companies we have seen."
Comments (6)
  • Hmmm. A Chinese Solyndra?
    3 Jan 2013, 10:03 PM Reply Like
  • LPH ..... if the news is true, this will be my worse investment ever and a huge disappointing loss
    4 Jan 2013, 04:16 AM Reply Like
  • I am just curious why do people invest in these non transparent companies?

     

    There were plenty of warning signs here.
    4 Jan 2013, 05:29 AM Reply Like
  • The entire Chinese Regime is massively corrupt so why shouldn't its spawn be frauds too?

     

    A polity rots from its head and then the rot spreads through the body. As in the US Soviet so in the Chinese Soviet.
    4 Jan 2013, 05:42 AM Reply Like
  • LPH responds to fraud allegations? Where? What, is it a private response that SA can't link to?
    4 Jan 2013, 11:01 AM Reply Like
  • I dodged this one but a few years back was caught with my pants down on a Venezuela ADR that the govt forcibly took over and stiffed the investors. Different situation but lesson learned was that ADR's are risky business. Unless they are from the developed nations(UK, Australia, Germany, etc) - still risky but less so than China, Venezuela, etc. LPH response is weak, looks like more worms are going to crawl out here.
    4 Jan 2013, 04:13 PM Reply Like
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