Aurelien

China North East Petroleum: Growth Confirmed, Stock Re-rating Anticipated

I actually like this one better without the share valuation. It allows the readers to come up with their own thoughts and lets the numbers speak for themselves. Narianu from the IV board has pointed out the the lowest TTM P/E CNEH has seen is 6.5, while more typical PE's are in the 9-13 range. Assuming a typical P/E at the end of 2010, CNEH should be in the $20-30 range by then.

I for one would be very happy to see those figures in 2 years.

The Long Case for China North East Petroleum

I would like to point out that hiwind's question was responded to on the Yahoo message board as well. I showed in detail how CNEH would be fine, and yet this poster asked the same question in another thread. I see that he is trying to create doubts in people instead of actually being concerned himself, since the answer has been explained multiple times.

The Long Case for China North East Petroleum

Excellent point. Thanks for clearing that up!

The Long Case for China North East Petroleum

Wow, excellent article. I was planning on writing one on CNEH myself, but I don't think I will need to anymore. I was wondering if you are one of the regular posters on either the yahoo or investor village message boards.
Also, one question. Where did you get the information about the actual timing on costs for drilling each well. On the boards we all were understanding that the total cost was only about $320k, split up in the following way: $100k up front and then the remaining $220k split up evenly between the next 24 months.
What you explained was different and if it is the case I am very interested in changing it in my models.