Nawar Alsaadi

'Up Listed Chinese Companies: Above Average Returns

Danny, NEP remains newly listed, I believe it would take sometime to build a stable and wider shareholder base, meanwhile the relatively small float and the interest by short term traders in Chinese is adding to the volatility, which actually seems to be a plus right now, since it is offering liquidity for the long term shareholders to take a position.

As for the dilution, most of the dilution is tied to the warrants placed in February 2008, which are in the money now (thus included in the diluted share count), in my last conversation with management I pressed on the issue of not issuing more “warrants” to fund growth since the shares are undervalued, they do seem to be in accordance with this point, being a major exchange listed today reduces the need for the company to entice backers with very discounted shares or warrants to gain access to capital, I believe as we move forward share issuance will be tied to accretive growth only (even thought the warrants and debt financing in 2008 was also accretive).

I believe that NEP shares remain extremely undervalued, based on the value of the reserves in the ground (deals in Jilin were valued at $19/$20 a barrel in the ground), and based on the valuation of peers in the industry, NEP should trade at a minimum of $10 a share to trade at fair value.

Regards,
Nawar

On Sep 02 11:10 AM Danny Furman wrote:

> Thanks Nawar, after rereading more closely I understand that you
> mentioned several companies to show appreciation rather than value.
> With regards to NEP, are you concerned with how the stock performs?:
> Lots of shorting given the valuation. To me it looks like aggressive
> accumulation, shorting any signs of weakness to take out stop losses.
> On the other hand, it seems possible that shares are being added
> and dilution will continue until the valuation is no longer favorable.
> My inclination is towards the former (seekingalpha.com/artic...),
> but I'd really appreciate your thoughts as you are more experienced.

'Up Listed Chinese Companies: Above Average Returns

Danny, there is a dozen of Chinese companies that have listed recently and many more are ready to list, my goal was not to have a comprehensive list of all such companies, but to highlight the appreciation potential of those stocks, I believe the point was made with the chosen sample.

Regards,
Nawar


On Sep 01 11:57 AM Danny Furman wrote:

> I'm surprised not to see CBEH and SKBI listed here.

The Happy Three: Chinese Smallcaps with Big Potential

Founding, is your question related to a specific company in the article? or all Chinese small caps?.

Regards,
Nawar


On Apr 21 04:42 PM FoundingFather wrote:

> Nowar, how reliable do you think is their reporting ? Can we trust
> the numbers?

The Happy Three: Chinese Smallcaps with Big Potential

I just went through your website, and I believe that you provide an excellent resource for investors looking for undervalued and overlooked companies, however upon further research I noticed that Geoinvesting management is also involved in Marketedge (which if I am not mistaken, some kind of hedge fund?), thus perhaps a disclosure about Geoinvesting team interest in the covered companies (if any) would be appropriate.

Keep the good work,
Regards,
Nawar


On Apr 14 03:01 PM The GeoTeam wrote:

> Thanks for the article Nawar. We focus mainly on Micro Cap Chinese
> stocks that we believe are bargains. We have developed a system by
> which we value the stocks based on a set of criteria that reinforces
> a foundation for growth.
>
> We recently wrote about CGA and are glad that someone other than
> us has realized its potential. We like to interview companies, and
> CGA for one is very open to discussions about the future. Please
> let us know your thoughts on some of the stocks we have labeled as
> GeoBargains on our website GeoInvesting.com since it seems
> you have a good handle on how to look for value.

The Happy Three: Chinese Smallcaps with Big Potential

Thanks Art!.

Regards,
Nawar


On Apr 14 11:17 AM ArtfulDodger wrote:

> Nawar Alsaadi wrote: "I strongly believe that markets are inefficient
> and that investors are emotional creatures driven by fear and greed
> regardless of the fundamentals."
>
> Very well said statement to let us know you're an investor, and it
> goes perfectly with your article.
>
> Thank you!

The Happy Three: Chinese Smallcaps with Big Potential

I believe CHNG can make its move regardless of the listing, but a listing will be a major boost there is no question about it, I believe buying before the listing is an opportunity to maximize returns.

Regards,
Nawar


On Apr 13 11:17 PM Jacque wrote:

> finally someone notices CHNG .I have been accumulating as it has
> gone down. Do you think its only hope of a major move is after it
> is listed on Nasdaq, like they have been talking about?

The Happy Three: Chinese Smallcaps with Big Potential

Both of those look interesting at first glimpse, however I have not researched them thoroughly, there are so many undervalued small cap Chinese companies out there, for value investors is like being a kid in candy store!.

Regards,
Nawar