mo_scuba

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

Aurelien, I agree that CNEH is undervalued based on the production growth we asume is coming. However, I doubt CNEH will hit a PE over 10 due to China exposure and their need for new oil reserves as they are expediting their reserve consumption with their enhanced well development.

PE is not a good valuation tool as "G" needs to be quantified and not spread from company to company within a sector. In oil producers there are many small speculative companies that pull up the PE and "G" is a function of a commodity price.

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

Excellent job esp. in citing your assumptions. You tuck to financials and let the reader convert into share value; due to your good approach I'd like to see you do a share valuation model to end with.