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  • Short Term Trade In Sino Gas Nets ~7% 0 comments
    Jun 17, 2014 5:31 PM | about stocks: SGAS

    . SGAS currently trades in the 1.19 - 1.21 range
    . SGAS is being purchased for 1.30
    . Purchase is expected to complete in the existing quarter
    . Limited information means increased risk

    China recently became the world's largest polluter largely due to its reliance on coal power plants. To reduce the growth of its carbon emissions China will need to make the move to cleaner energy sources such as natural gas. SGAS, as its name implies, owns a natural gas distribution network with 200,000+ customers, 1,500 km of pipe and over 100,000 meters cubed of daily distribution.

    Solving China's pollution woes is not the reason I am recommending Sino Gas International Holdings. Sino Gas is being acquired for 1.30/share in the current quarter. This gives you a 7% gain for putting your money at risk for several weeks. In the worst case that the buyout falls apart then your fallback position is that you're invested in the opportunity described in the opening paragraph. The press release for this acquisition is here:

    Disclosure: The author is long SGAS.

    Stocks: SGAS
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