Blog Claims SinoCoking (SCOK) is Full of Junk, Not Coal
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SinoCoking & Coke Chemical Industries (Nasdaq: SCOK) went public back in February of 2010 and raised over $44 million through its initial public offering, but according to one blogger there are serious questions about the legitimacy of the company.
According to Alfred Little's blog, the Henan government never appointed SCOK as a coalmine consolidator and that it's "Mine Consolidation is Just a Dream."
The blog claims management was completely lying when it stated that the company entered agreements to acquire the Xingsheng and Shuangrui coal mines. SCOK was never officially a consolidator of the Hongchang coal mine, the blog states.
Alred Little highlights how government documentation indicates that the Hongchang mine is not actively producing any coal. At the Hongchang mine there is a warning listed at the site that reads, "Anyone will get a big monetary reward (50k RMB to 150K RMB) for reporting illegal mining activity in the area." Mr. Little notes that the letter is dated June 20, 2011 and is on behalf of eight local authorities.
On a conference call on May 16, 2011, management highlighted that production at its new Coking would be completed the following month and noted that trial production would begin at the end of June 2011. In its latest conference, management commented that production was running slower than expected and that its new Coking Plant wouldn't be completed until the end of 2011.
Alfred Little provides government documentation that its new Coking plant was nothing more than what he calls "a hole in the ground" on May 16th when management originally released an expected completion date.
Link to the blog post
According to Alfred Little's blog, the Henan government never appointed SCOK as a coalmine consolidator and that it's "Mine Consolidation is Just a Dream."
The blog claims management was completely lying when it stated that the company entered agreements to acquire the Xingsheng and Shuangrui coal mines. SCOK was never officially a consolidator of the Hongchang coal mine, the blog states.
Alred Little highlights how government documentation indicates that the Hongchang mine is not actively producing any coal. At the Hongchang mine there is a warning listed at the site that reads, "Anyone will get a big monetary reward (50k RMB to 150K RMB) for reporting illegal mining activity in the area." Mr. Little notes that the letter is dated June 20, 2011 and is on behalf of eight local authorities.
On a conference call on May 16, 2011, management highlighted that production at its new Coking would be completed the following month and noted that trial production would begin at the end of June 2011. In its latest conference, management commented that production was running slower than expected and that its new Coking Plant wouldn't be completed until the end of 2011.
Alfred Little provides government documentation that its new Coking plant was nothing more than what he calls "a hole in the ground" on May 16th when management originally released an expected completion date.
Link to the blog post
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