KEW1155

Is Lihua International Cooking Its Books? Part II

My only question here is can anyone actually give us a plausable reason, based on facts, that the selling price per ton is as high as it is?
Did they report the tons correctly? ( they do make sense at 2956 since the annual capacity is 6000) Blasting anyone for being a "short" or a "long" is a complete waste of everyone's time. Do some research, call the company, get some facts and let us know. I have no position in this company. I did do a quick analysis, based on the gross profit they made per ton for the 1st 6mo vs 2008 and 2009 and it does not look right to me unless they sold alot more tons than they said they did, but have a look and do your own work.

Tempted to Buy Google

The market selling is and will likely remain a sunami for a while. There will be bad news after bad news - Jan's earnings will stink - you should have multiple opportunities to buy at 300 or lower.

Although GOOG is a great company, it is being affected by the flood just like everything else

On Bidz.com's Questionable and Inconsistent Inventory Disclosures

He makes a valid point about inventory manipulation - not to say that it is here or not, but that is one way to get it done.

that said, the inventory did go up in the 2nd Q although the gross margin on sales did not - generally if inventory is artifically increased you would get a higher margin.

Best to keep your awareness high.

Energy, Consumer Staples: Value Investments Increasing

I agree on many of your points, especially that investors are operating on pure fear at this point ( who can blame them!). I am of the opinion that if you stay with companies that are likely to make money, have significant barriers to entry, and can raise their prices to compensate for higher costs, then it should be a good investment.

Oil fits the bill and fortunately for us the price is now cheap.