China Natural Gas Bumping Against All Time Highs 33 comments
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Most Chinese regional stocks, including CHNG, have withstood recent negative media on China, a long run that is strengthening the government's intervention to contain the booming economy. More specific to CHNG, the PRC has also added tax incentives for use of clean energy. Solving pollution problems is critical to China's survival. Now that natural gas is a competitive energy source, the outlook is blooming.
CHNG's ability to take advantage of the favorable situations has resulted in more than doubling of revenues and income for several years. Major commitments to LPN facilities for the future will further diversify the company products. Their regional natural gas pipeline and strong management keeps them competitive and less exposed to newly available foreign money. The overall Chinese markets have locals lined up to buy stocks and foreigners adding venture money for growth. TA analysis is supportive of these great fundamentals.
Now, one can expect the added trade volume to be supportive as the stock is bumping against all time highs. Management's recent guidance for additional filling stations, expanding into virgin territories. Their likely listing on a major U.S. exchange and a robust '07 and '08 outlook is more than just strong support at these latest price levels. The strong stable management has a good record of meeting its past optimistic commitments. I have followed the Chinese market for years and have averaged up my holdings of CHNG.
CHNG 1-yr chart:
Disclosure: The author has a position in CHNG.
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Who is "most"? The current shareholders?
then "many" or "most" were very wrong.
I still like SNEN here. They made .24/share in 2006, which is more than CHNG did.
Best part about SNEN is that they have no need for this sort of dilution that CHNG is now faced with- SNEN has the cash they need to build the first 30 stations already.
Good luck.
CHNG --- This must be some super great company. They have a private placement to raise $15 million and they priced the shares at about $4.00 each !!!!! That's about $2.00 BELOW the current market price. Then, the morons get in there and BUY the shares in the market and drive them up even further. Incredibly, $4.00 is all the company could get for their shares, but the morons feel they are worth not only ~ $6.00, but even more, because they bid them up even after SDTH announced its private placement. Thank God we have morons that buy stocks.