According to this research report from The Street Sweeper, L&L Energy, Inc. LLEN may indeed be a fraud.
The Chinese coal company, which recently went public, has been accused of misleading investors in the past, and now is a Wall Street darling, as it posts mind-blowing numbers.
The company takes underperforming coal mines, buys them at a heavy discount, and then uses the company management to turn these mines into strong performers. In fact, it's done this so much, it now boasts the highest margins in the industry, higher than Peabody BTU for instance. Or at least, so it seems.
Street Sweeper sent the company a list of questions regarding its practices, management and a host of other issues, but never received a response back. Actions like this make you think that something is up, and Street Sweeper may have uncovered something.
There are also concerns over the company's auditing firm, Kabani, which has undergone two investigations regarding its practices. Both times, it's done miserably.
Let us know what you think after reading the research report. Is L&L Energy a fraud?
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