TSquared's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/946901/comments http://seekingalpha.com/article/718871/comments?source=feed#comment-7367291 7367291
If LLEN does not control operations wouldn't I be the one personally at risk.]]> Fri, 13 Jul 2012 17:20:00 -0400
If LLEN does not control operations wouldn't I be the one personally at risk.]]> http://seekingalpha.com/instablog/946901-tsquared/589451-l-l-energy-inc-a-deeply-undervalued-company?source=feed#comment-7187321 7187321
1) That is our belief but we don't know for sure that no money changed hands. What we do believe is that the new owners are willing to cover overhead and continue building the second shaft and work to get the first shaft back into production. Those activities take money and time which I believe LLEN was not willing to do at this time as they are focused on bigger safer mines (union energy and others). This reduces risk and increases cash flow faster as there is not a lot of new capex in those mines. So for the new owners to take over the mine, invest the cash to put it into production and expand the production and LLEN to get future benefit from such activity seems like a good situation for shareholders vs. LLEN having to invest the money when they have a better use and have to deal with trying to get it into production while paying overhead expenses at the mine.

2) The mine has been closed for a pretty long period of time. That is true, but also not 100% accurate. LLEN had reinvested significant cash flow back into the mine during this period of time:

- They built a wash plant that would run anywhere from $7.0 to $12.0 million in capital. The unfortunate thing about a wash plant is they are difficult to move and only provide a regional benefit. Meaning trucking coal to a wash plant from other mines LLEN is buying would be impractical as it’s costly to ship raw coal. So it was part of this deal, but clearly the original owners aren't going to pay cash upfront for it given the mine needs to be brought back into production.

- LLEN invested significant money into the existing shaft and new shaft. We estimate $3.0 to $7.0 million based on cost of building a shaft. Such expense was a sunk cost over period of time. Once again new owners aren't going to pay cash upfront given current situation.

- LLEN also expanded dorms, infrastructure, office space, roads etc. during their tenure of ownership. Such items probably ran $4.0 to $6.0 million.

- Coal prices are much higher now in the region vs. when they bought it. Hence there is more future value in the coal if the new owners are willing to invest the money and time to get the mine back into production. For LLEN it appears to be about opportunity costs. Put deposits and payments towards bigger better more established mines or continually reinvest in this mine and spend the time and energy to get it to where the union energy mines which through off cash flow almost immediately. We would prefer personally the Union Energy Mines and other future acquisitions.

All in all if you take our midpoints (which are purely our estimates) it would run about $20 million in capex, plus $4.0 million invested initially.

The $31 million figure would enable LLEN to generate a profit on the sale as well as recoup invested cash flow should the new owners be successful in getting the mine back into production. Such transaction seems to be a fair deal for both parties.

The new owners:
- take risk on capital getting mine back into production.
- spend time to get it approved and back into production.
- cover overhead during such period to get it producing.

LLEN gets:
- Future cash flow to pay for the money they invested when the new owners are successful in getting it producing
- get a return on the capital they invested to upgrade the facilities and build the wash plant when the mine begins producing.

All in all given the situation it appears to be a deal that everyone wins if the new owners are successful in getting it back into production.

If LLEN kept it themselves they would have to invest money, time and energy that would restrict them from doing other things such as new acquisitions, buying back stock, etc. We believe this deal made senses given the current climate and difficulty of the situation. Yet also ensure that should the situation change at this mine, shareholders would still be rewarded in a pretty big way.

This is our opinion and our interpretation of the situation. ]]> Mon, 09 Jul 2012 07:07:31 -0400
1) That is our belief but we don't know for sure that no money changed hands. What we do believe is that the new owners are willing to cover overhead and continue building the second shaft and work to get the first shaft back into production. Those activities take money and time which I believe LLEN was not willing to do at this time as they are focused on bigger safer mines (union energy and others). This reduces risk and increases cash flow faster as there is not a lot of new capex in those mines. So for the new owners to take over the mine, invest the cash to put it into production and expand the production and LLEN to get future benefit from such activity seems like a good situation for shareholders vs. LLEN having to invest the money when they have a better use and have to deal with trying to get it into production while paying overhead expenses at the mine.

2) The mine has been closed for a pretty long period of time. That is true, but also not 100% accurate. LLEN had reinvested significant cash flow back into the mine during this period of time:

- They built a wash plant that would run anywhere from $7.0 to $12.0 million in capital. The unfortunate thing about a wash plant is they are difficult to move and only provide a regional benefit. Meaning trucking coal to a wash plant from other mines LLEN is buying would be impractical as it’s costly to ship raw coal. So it was part of this deal, but clearly the original owners aren't going to pay cash upfront for it given the mine needs to be brought back into production.

- LLEN invested significant money into the existing shaft and new shaft. We estimate $3.0 to $7.0 million based on cost of building a shaft. Such expense was a sunk cost over period of time. Once again new owners aren't going to pay cash upfront given current situation.

- LLEN also expanded dorms, infrastructure, office space, roads etc. during their tenure of ownership. Such items probably ran $4.0 to $6.0 million.

- Coal prices are much higher now in the region vs. when they bought it. Hence there is more future value in the coal if the new owners are willing to invest the money and time to get the mine back into production. For LLEN it appears to be about opportunity costs. Put deposits and payments towards bigger better more established mines or continually reinvest in this mine and spend the time and energy to get it to where the union energy mines which through off cash flow almost immediately. We would prefer personally the Union Energy Mines and other future acquisitions.

All in all if you take our midpoints (which are purely our estimates) it would run about $20 million in capex, plus $4.0 million invested initially.

The $31 million figure would enable LLEN to generate a profit on the sale as well as recoup invested cash flow should the new owners be successful in getting the mine back into production. Such transaction seems to be a fair deal for both parties.

The new owners:
- take risk on capital getting mine back into production.
- spend time to get it approved and back into production.
- cover overhead during such period to get it producing.

LLEN gets:
- Future cash flow to pay for the money they invested when the new owners are successful in getting it producing
- get a return on the capital they invested to upgrade the facilities and build the wash plant when the mine begins producing.

All in all given the situation it appears to be a deal that everyone wins if the new owners are successful in getting it back into production.

If LLEN kept it themselves they would have to invest money, time and energy that would restrict them from doing other things such as new acquisitions, buying back stock, etc. We believe this deal made senses given the current climate and difficulty of the situation. Yet also ensure that should the situation change at this mine, shareholders would still be rewarded in a pretty big way.

This is our opinion and our interpretation of the situation. ]]> http://seekingalpha.com/instablog/946901-tsquared/589451-l-l-energy-inc-a-deeply-undervalued-company?source=feed#comment-7055931 7055931
The Union mines, based on existing build out and infrastructure, need very little capex which should provide LLEN with ample cash flow along with the marketing contracts, bowie cash (assuming they get paid back on part of their note), and existing mining revenue to buy back stock at a fairly attractive clip as well as continue to consolidate in their region. Historically and before the Guizhou consolidation program was announced the mines they acquired needed significant capex to get them to required production levels, thus constrained LLEN's capital for additional acquisitive growth. With these new mines such capital will be available to use for accretive purposes (stock buy backs and acquisitions).

In Guizhou there has been additional press on the consolidation front and we believe LLEN (Led by Syd Peng, Jingcai Yang, Dickson Lee, Ed Moy and Clayton Fong) will be a significant beneficiary in such process.

We believe the stock remains undervalued based on fundamentals, peers and future cash flow analysis.]]> Wed, 04 Jul 2012 08:02:39 -0400
The Union mines, based on existing build out and infrastructure, need very little capex which should provide LLEN with ample cash flow along with the marketing contracts, bowie cash (assuming they get paid back on part of their note), and existing mining revenue to buy back stock at a fairly attractive clip as well as continue to consolidate in their region. Historically and before the Guizhou consolidation program was announced the mines they acquired needed significant capex to get them to required production levels, thus constrained LLEN's capital for additional acquisitive growth. With these new mines such capital will be available to use for accretive purposes (stock buy backs and acquisitions).

In Guizhou there has been additional press on the consolidation front and we believe LLEN (Led by Syd Peng, Jingcai Yang, Dickson Lee, Ed Moy and Clayton Fong) will be a significant beneficiary in such process.

We believe the stock remains undervalued based on fundamentals, peers and future cash flow analysis.]]> http://seekingalpha.com/instablog/946901-tsquared/589451-l-l-energy-inc-a-deeply-undervalued-company?source=feed#comment-7055741 7055741
2. The price is not exaggerated when accounting for the amount of capital that was reinvested into Ping Yi (both the mine infrastructure and the wash plant). While the original purchase price was $4 million, significant capital was reinvested into the mine as well, which put the purchase price plus capex closer to the $31 million sale price.]]> Wed, 04 Jul 2012 07:52:17 -0400
2. The price is not exaggerated when accounting for the amount of capital that was reinvested into Ping Yi (both the mine infrastructure and the wash plant). While the original purchase price was $4 million, significant capital was reinvested into the mine as well, which put the purchase price plus capex closer to the $31 million sale price.]]> http://seekingalpha.com/instablog/946901-tsquared/457131-l-l-energy-conclusively-proves-ownership-of-ping-yi?source=feed#comment-3979741 3979741
“A suspicious testimony of an individual who claims to be a minority owner of Ping Yi, who read from a pre-arranged script and included this person asking what his lines were, while the director of the video whispered to just read the script. Given the nature and appearance of the interview, we fundamentally and fully question Geoinvesting's intentions and the integrity of this individual that was acting out his role (actors typically get "paid money" for their role).”

Our statements questioned this individuals “intent” and whether he was being “coerced” or “bribed”. Based on what we know today we are confident that he was bribed by Geoinvesting to act out his scripted role per the video that they released. This script we believe was written by Geoinvesting and their accomplice on the ground to attempt to manipulate the stock of LLEN.

We stand by our statements and believe that the FBI and SEC should whole heartedly investigate Geoinvesting and their associates for market manipulation and their criminal activity.]]> Fri, 30 Mar 2012 10:13:49 -0400
“A suspicious testimony of an individual who claims to be a minority owner of Ping Yi, who read from a pre-arranged script and included this person asking what his lines were, while the director of the video whispered to just read the script. Given the nature and appearance of the interview, we fundamentally and fully question Geoinvesting's intentions and the integrity of this individual that was acting out his role (actors typically get "paid money" for their role).”

Our statements questioned this individuals “intent” and whether he was being “coerced” or “bribed”. Based on what we know today we are confident that he was bribed by Geoinvesting to act out his scripted role per the video that they released. This script we believe was written by Geoinvesting and their accomplice on the ground to attempt to manipulate the stock of LLEN.

We stand by our statements and believe that the FBI and SEC should whole heartedly investigate Geoinvesting and their associates for market manipulation and their criminal activity.]]> http://seekingalpha.com/article/386021/comments?source=feed#comment-2861661 2861661 Thu, 23 Feb 2012 10:21:52 -0500 http://seekingalpha.com/article/386021/comments?source=feed#comment-2858751 2858751
Similar to the US, China's ownership system relies upon executed legal documents by a party and a counterparty. That is the standard of proof of ownership, both in the US and in China. That document specific to Ping Yi has been published as an exhibit in their SEC filings and formally confirmed independently.

I am not sure what you are referring to in your second question.]]> Thu, 23 Feb 2012 09:20:17 -0500
Similar to the US, China's ownership system relies upon executed legal documents by a party and a counterparty. That is the standard of proof of ownership, both in the US and in China. That document specific to Ping Yi has been published as an exhibit in their SEC filings and formally confirmed independently.

I am not sure what you are referring to in your second question.]]> http://seekingalpha.com/article/386021/comments?source=feed#comment-2858041 2858041
LLEN has provided many documents to the public to show their ownership and has several forms of independent verification for the same. If you, or any other investor, do not believe these documents, there are also many more documents on-site to see that further show this.

That is why we invited GeoInvesting to the site; to see the more granular proof if they had questions. They did not take us up on that offer, which in our mind shows their intent.]]> Thu, 23 Feb 2012 09:04:23 -0500
LLEN has provided many documents to the public to show their ownership and has several forms of independent verification for the same. If you, or any other investor, do not believe these documents, there are also many more documents on-site to see that further show this.

That is why we invited GeoInvesting to the site; to see the more granular proof if they had questions. They did not take us up on that offer, which in our mind shows their intent.]]> http://seekingalpha.com/instablog/946901-tsquared/331231-pictures-of-ping-yi-operations-over-extended-period-of-time-confirming-llens-ownership?source=feed#comment-2824511 2824511
We can review all the documents and proof you want at the mine site when you take me up on my offer to go visit the mine together.

If LLEN does not own the mine than what are you scared of having your team go to the mine with my team?

If LLEN doesn't own the mine, and as you claim the owners are pissed off at LLEN, than wouldn't they be violent towards us and not you?

If LLEN does own the mine and the management and myself are US citizens do you really think we are going to physically harm your team?

Also how did you get a notary office to open on a Sunday given numerous calls say they are closed on Sunday?]]> Wed, 22 Feb 2012 06:43:29 -0500
We can review all the documents and proof you want at the mine site when you take me up on my offer to go visit the mine together.

If LLEN does not own the mine than what are you scared of having your team go to the mine with my team?

If LLEN doesn't own the mine, and as you claim the owners are pissed off at LLEN, than wouldn't they be violent towards us and not you?

If LLEN does own the mine and the management and myself are US citizens do you really think we are going to physically harm your team?

Also how did you get a notary office to open on a Sunday given numerous calls say they are closed on Sunday?]]> http://seekingalpha.com/instablog/946901-tsquared/331231-pictures-of-ping-yi-operations-over-extended-period-of-time-confirming-llens-ownership?source=feed#comment-2808951 2808951
I am happy to travel to the mine itself if you want to put an end to your childish banter. I am not going back and forth as you would hope to do. I have kept pretty quiet even with your multiple attempts to discredit the company especially given the lack of quality and professionalism you have portrayed. I believe you have some answering to do on a lot of the information you presented as well as the timing of such releases.

If you want to stick with your claims thats your perogative but I have better things to do than make up information like you so I will stick to facts. ]]> Tue, 21 Feb 2012 15:27:24 -0500
I am happy to travel to the mine itself if you want to put an end to your childish banter. I am not going back and forth as you would hope to do. I have kept pretty quiet even with your multiple attempts to discredit the company especially given the lack of quality and professionalism you have portrayed. I believe you have some answering to do on a lot of the information you presented as well as the timing of such releases.

If you want to stick with your claims thats your perogative but I have better things to do than make up information like you so I will stick to facts. ]]> http://seekingalpha.com/instablog/946901-tsquared/331231-pictures-of-ping-yi-operations-over-extended-period-of-time-confirming-llens-ownership?source=feed#comment-2807011 2807011
I have no lawsuits outstanding against me. Are you threatening one? I would look forward to discovery on that case.

The best I can do is pictures? My team is not a coward and will go there ourselves. If LLEN doesn't own the mine than clearly we would not be welcome and you would be. Not sure what you have to be scared of given what you claim? We would be the ones in danger according to your scripted movie production.]]> Tue, 21 Feb 2012 14:21:24 -0500
I have no lawsuits outstanding against me. Are you threatening one? I would look forward to discovery on that case.

The best I can do is pictures? My team is not a coward and will go there ourselves. If LLEN doesn't own the mine than clearly we would not be welcome and you would be. Not sure what you have to be scared of given what you claim? We would be the ones in danger according to your scripted movie production.]]> http://seekingalpha.com/instablog/360252-the-geoteam/320071-true-owner-and-legal-representative-of-the-ping-yi-mine-speaks-out-to-expose-l-l-energy-fraud?source=feed#comment-2806991 2806991
If LLEN does not own the mine than what are you scared of having your team go to the mine with my team?

If LLEN doesn't own the mine, and as you claim the owners are pissed off at LLEN, than wouldn't they be violent towards us and not you?

If LLEN does own the mine and the management and myself are US citizens do you really think we are going to physically harm your team?

The offer stands. If you want to stick to scripted movie productions that's your prerogative. Who produced that wonderful video by the way? Seems the best way would be to go onsite.

Also how did you get a notary office to open on a Sunday given numerous calls say they are closed on Sunday? ]]> Tue, 21 Feb 2012 14:21:17 -0500
If LLEN does not own the mine than what are you scared of having your team go to the mine with my team?

If LLEN doesn't own the mine, and as you claim the owners are pissed off at LLEN, than wouldn't they be violent towards us and not you?

If LLEN does own the mine and the management and myself are US citizens do you really think we are going to physically harm your team?

The offer stands. If you want to stick to scripted movie productions that's your prerogative. Who produced that wonderful video by the way? Seems the best way would be to go onsite.

Also how did you get a notary office to open on a Sunday given numerous calls say they are closed on Sunday? ]]> http://seekingalpha.com/instablog/946901-tsquared/183910-our-investment-in-l-l-energy-inc-llen-and-a-public-response-to-questions-by-sharesleuth-com?source=feed#comment-1686691 1686691
We are fully confident that whatever manipulative piece sharesleuth or any other negatively slanted author attempts to publish will be factually incorrect, baseless and purely attempting to manipulate the security for the benefit of the author and their friends, similarly to any other past attempts that have been made over the last 9 months.

We are confident that management will keep their minds and efforts focused on growing the business for the future versus spending any effort responding to, or getting caught up, in these clearly slanted and manipulative reports. ]]> Fri, 03 Jun 2011 13:30:53 -0400
We are fully confident that whatever manipulative piece sharesleuth or any other negatively slanted author attempts to publish will be factually incorrect, baseless and purely attempting to manipulate the security for the benefit of the author and their friends, similarly to any other past attempts that have been made over the last 9 months.

We are confident that management will keep their minds and efforts focused on growing the business for the future versus spending any effort responding to, or getting caught up, in these clearly slanted and manipulative reports. ]]>