Boston, MA 10/14/2013 (wallstreetpr) - A news release on October 10, announcing initiation of coverage for L & L Energy, Inc. (NASDAQ:LLEN) with a price objective of $5.43 per share changed the course of coal producer company in the stock exchanged market last Friday.
It remains to be seen whether the bullish rally witnessed Friday, October 11, just a day after the independent study release, will be sustained today and the weeks or months to come.
LLEN has seen its fair share of market hiccups lately and this is why there is particularly great anticipation over the direction the stock takes after it hit gained 21% in share value in the last trade which saw unusual trading of its share at the NASDAQ.
Lately, LLEN has been in the headlines for all the bad reasons. In nearly three weeks, about 10 news releases have been announcing investigations and lawsuits against the $66.30 million company. However, investors chose to downplay such news to warm to the stock in a very big and interesting way.
The latest lawsuit facing LLEN is a class action at the United States District for the Southern District of New York, spearheaded by Law Offices of Howard G. Smith. The company is accused of unethical misrepresentation of information to shareholders between September 11, 2012, and September 18, 2013.
Particularly, the Chinese coal company is accused of failing to disclose that the company lacked adequate financial and internal controls. Also, its alleged LLEN claimed acquisitions of never actually occurred. The plaintiffs also accuse the company of improper accounting of revenue from operations which had been shutdown.
LLEN is a vertically integrated company in coal business. It sells metallurgical coal, thermal coal and coking coal to private and state-owned companies. The company has recently has negative rallies but bounced back after study that diluted the much talked about lawsuits against it.
LLEN is a hold for now, but a buy require due diligence to ensure that all aspects of the stock’s future are explored.