this is just one of their 5 production plants, there might be some
business impact but I don't think this will be anything major, GU is
supplying their current customers from other plant sites, and that
actually should help reduce their overall operation cost - with the
economy like this, I don't think GU is operating at even 70% total
capacity currently. If China raises their diesel price by another 5 or
10% or gives biodiesel a special break, that will definitely get GU
moving. In addition, I think GU is trying to get some tax deal with
the local Fujian government, since that plant is still fairly new, and
often there are local special tax breaks available. I bet they got 3-
year tax-free (which is very typical in China for new investment) when
they first started that plant in 2006 and now it is time to find way
to continue that tax benefit, (and often they can, depending on their
local government relation). Otherwise, GU should stop production at
other sites as well, since the consumption tax was from the central
government and should apply to products from all 5 sites.

Anyway, I feel right now is a good opportunity to buy dip, though
there is chance that GU might go to $1, (just like S&P may retest the
March low), I'm buying GU for long term anyway, oil eventually will
return to >80$ within 12 months, and GU should be > $4.5 at that time.
12 months with 100% return, I'll be very happy. :)

On Jun 16, 10:04 pm, Wolf <ccspagn...@hotmail.com> wrote: