Sino Clean Energy (SCEI) Investigatory Report - Overstated Revenues?
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
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.