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Sino Clean Energy (SCEI) Investigatory Report - Overstated Revenues?

Apr. 26, 2011 2:16 PM ET13 Comments
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We recently completed on-the-ground due diligence on Sino Clean Energy (NASDAQ: SCEI) regarding its Tongchuan facility and uncovered what we consider to be substantial misrepresentations by the company about its operations. As originally indicated in an earlier alert, we currently have a short position in SCEI.

GeoTeam's Findings

What follows are some highlights of our findings:

1. Facility and Production Lines: Why Aren't They Operating?

Our investigators visited SCEI's Tongchuan facility at Wangjiabian Village, Dongjiahe Town, Yaozhou District, Tongchuan Shaanxi Province. SCEI claims to have three production lines in this facility that provide a total capacity of 550,000 tons.See page 19 of the 2010 10-K

However, our investigators relayed that there is likely only one production line in operation.

To read full report, please go here.

Disclosure:  Position in SCEI Puts

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