Cat's eye

The Long Case for Gushan Environmental Energy

David,

I had this article translated for me. This article is written by a news reporter who went to Gushan's refineries in Fujian and Sichuan provinces. The first thing he discovered was that Gushan hired trucks to come in and out of their factory to put on a show of busy receiving and delivering (in Fujian, he saw 1 truck came into the factory, went on the weigh bridge, which read 2+ tons only, drove around the factory, went out of the factory, stopped at a PetroChina gas station, waited for 15 minutes, and then drove back to the factory for another round. The reporter noticed 3 trucks were doing the show and he recorded their plate numbers. He then found the same thing in Sichuan and the people in the neighborhood said Gushan had been doing this since last year, 4 trips/truck per day and 2 trips/day in raining days). Then he interviewed Gushan's staff and they said that their feedstock purchasing price to their branches was RMB4,200/ton and whatever the Branch managers could source for below that price was their profit, as an incentive). Gushan's factories have severe pollution and local residents were filing complaints to local gov requesting to close the factory down. etc. etc.


On Oct 30 04:01 PM Davis wrote:

> Schrader Trader,
>
> Wanted to know if you checked into the GU article mentioned by Cat.
> I followed the link, then Googled "translate webpage", copied the
> web address into the translator and the article was translated.
>
>
> I did this process twice through a Yahoo and a Google translate page.
> The article reads differently with each one, which is interesting,
> but the jist of it is the same.
>
> The article is a little hard to read, as the translation is not prefect,
> but it appears to suggest that the financials reported in GU's financial
> report are not correct and a front to gain more business. It also
> indicates that it is impossible for GU to purchase oil for 2390 yuan
> per ton, as the going rate is 5000 per ton.
>
> Here is the link to the article. finance.sina.com.cn/g/...
>
>
> I would be interested to know what you think about this. There are
> a few reliable stock websites that indicate GU is not only a buy,
> but set to spike, ie. Zacks.com, TheStreet.com and MotleyFool.com.
> Could it be that GU is not all that it appears to be and the news
> has not been entirely uncovered yet?
>
> I am hoping not, as it seems like such a great valuation and opportunity!
>
>
> Davis