A research firm known for uncovering fraud at Chinese companies with U.S.-traded shares took aim this past week at L&L Energy, sparking a one-day 40 percent plunge in its stock.
L&L, whose headquarters is in an office park near Southcenter, says it brings American-style management to small, inefficient coal operations in rural southern China.
Since 2006, founder and CEO Dickson Lee has announced a series of coal-property acquisitions, swaps and sales that lifted its reported annual revenues to $199”‰million and its profit margin to 19 percent.
But a lengthy report from GeoInvesting, a Pennsylvania firm that would profit from a drop in L&L’s stock, claims the company’s many transactions mask “a shell game” and it is “booking substantial revenue from operations that have been idled for quite some time.”