L&L Energy Up Despite GeoInvesting Report

Shares of L&L Energy LLEN, the controversial U.S.-based coal company that does the bulk of its business in China, are higher by about 5% on average volume today despite a report by GeoInvesting that reiterates the firm's view that L&L is not in fact the owner of the Ping Ying Mine in China. GeoInvesting first published research to that effect earlier this month. The research firm, known for its focus on U.S.-listed Asian companies, was out another note today questioning L&L on the Ping Ying Mine. "We understand that some investors have attempted to discredit our research, observing differences between the mining permit number/address on the official Ping Ying Mine chopped business license and Mining Permit compared to web sites posting disclosing the sale of the Ping Yi Mine. Conclusions based on this observation are baseless," GeoInvesting said in its report. L&L previously said it paid $3.96 million for the mine, but in its previous report, GeoInvesting a private investment group owns Ping Ying and that the group put the mine up for sale in 2011. L&L has said the mine accounts for 40% of revenue. "We stand by our conclusion that LLEN does not and never did own the Ping Yi Mine. Investors who do not embrace this conclusion are grasping for strings and playing a dangerous game," GeoInvesting said in today's update. The firm has a short position in Seattle-based L&L.