The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.BEIJING ( TheStreet) -- Earlier this year, when I visited Sino Clean Energy ( SCEI), the stock was trading below $7 on volume as low as 40,000 shares. It seemed that there was simply no awareness of the stock. Since then, shares have plunged by 70% due to short seller allegations of fraud -- on Friday, volume exceeded 3 million shares. SCEI's product, coal water slurry fuel ("CWSF"), has the potential to be a wonder fuel due to its ease of transportation, low waste residue and environmental benefits. I think it is an incredible product with huge potential in China. However, my visit to SCEI ultimately did not lead to an investment. First, the facility was surprisingly small. The main production line is simply a small mixer (picture a cement truck) which is fed coal by a small conveyor belt. This did not seem consistent with the company's stated capacity of 850,000 tons.
|The author at the SCEI facility|