growthvalue

China's Environmental Mess: Investment Opportunity?

SNEN:
Sinoenergy (SNEN) is a diversified provider of retail/wholesale compressed natural gas [CNG], CNG station design/construction services, compressed gas transportation equipment, and CNG conversion kits for gasoline-fueled automobiles in China. They are currently building out a network of compressed natural gas retail filling stations and plan to have 30 stations in operation by the end of 2007. Based on company guidance and make good clauses contained in their March 2007 purchase agreement, the company will earn 30 cents per fully diluted share. Given a recent price of $2.45 and a modest multiple of 12x some time in early '08 that represents a 40%+ total return.


Boone Pickens, founder of Californian based natural gas fuels provider, Clean Energy Fuels, is said to be eyeing up China for investments supplying fuel for natural gas vehicles. Reuters reports that Pickens was in China last week in talks with state oil firm CNOOC. The report says talks centred around the company teaming up with Chinese companies to build natural gas fuelling stations for buses and trucks. Pickens is a long-time advocate of natural gas as an alternative fuel for transport, saying it is a more valuable use of the resource and to use it for power generation.

It seems to me SNEN is already ahead of the game....I wonder if Pickens would ever try to intergrate with SNEN