christianredchip
12-04-2008, 05:08 PM
Longwei is a top fuel distributor in China. They are located in the Shan Xi Province and are one of the top fuel distributors, if not the top, in the province.
In business since 1995, Longwei is (OTCBB: LPIH) one of the few companies in the Shan Xi province that holds a Level I license, which allows them to purchase fuel at a discount directly from the refineries. Longwei sells their fuel products to large gas stations and power plants in the Shan Xi province. This highly efficient distributorship has turned Longwei into a virtual cash machine. The Company reported revenue of $142 million in FY08, up 51% over FY07. Net income was $20.7M in FY08, up 68% over FY07.
Though the price of crude oil is at levels not witnessed since 2005-2006, prices are expected to increase to $100 a barrel in late 2009. Longwei reported first quarter net income of $5.5M with revenue of $44.5M. Net margins remained strong at 11%.
Shan Xi Province is one of the largest energy providers and transport cities in China. Last year, the highway freight volume was ranged number-five in the entire country. Shan Xi has 4,692 gas stations, about 4 million cars, and each gas station serves an average of 600 cars, keeping demand for coal, electricity, gas, and oil high.
At $1.50, LPIH is a buy. The stock should trade at a P/E of 15, which would give the stock a price of $4.00.
To top it off, the head of the company is a former high ranking army General with close government contacts. You know how business is done in China....
Look into this stock. It is set to shoot up soon.
In business since 1995, Longwei is (OTCBB: LPIH) one of the few companies in the Shan Xi province that holds a Level I license, which allows them to purchase fuel at a discount directly from the refineries. Longwei sells their fuel products to large gas stations and power plants in the Shan Xi province. This highly efficient distributorship has turned Longwei into a virtual cash machine. The Company reported revenue of $142 million in FY08, up 51% over FY07. Net income was $20.7M in FY08, up 68% over FY07.
Though the price of crude oil is at levels not witnessed since 2005-2006, prices are expected to increase to $100 a barrel in late 2009. Longwei reported first quarter net income of $5.5M with revenue of $44.5M. Net margins remained strong at 11%.
Shan Xi Province is one of the largest energy providers and transport cities in China. Last year, the highway freight volume was ranged number-five in the entire country. Shan Xi has 4,692 gas stations, about 4 million cars, and each gas station serves an average of 600 cars, keeping demand for coal, electricity, gas, and oil high.
At $1.50, LPIH is a buy. The stock should trade at a P/E of 15, which would give the stock a price of $4.00.
To top it off, the head of the company is a former high ranking army General with close government contacts. You know how business is done in China....
Look into this stock. It is set to shoot up soon.