China North East Petroleum Holdings (NYSEMKT:CNEP)

CAPS Rating: 1 out of 5

The company engages in the exploration and production of crude oil in China.


Player Avatar mrindependent (35.94) Submitted: 12/21/2010 11:16:55 PM : Outperform Start Price: $5.55 CNEP Score: -108.55

This stock is still reeling from the restatement of its 2008 financial results, which occurred several months ago. I think the financials are basically in line and this company appears to be positioned for massive success as a favored driller for Petrochina. Simple business model, focused management. WIll be a multi-bagger unless fraud runs deep. I am putting real money on this.

Member Avatar Gonzhouse (24.16) Submitted: 3/16/2011 1:34:02 PM
Recs: 0

Agree. China needs 2 things going forward: food and oil. NEP is also going to benefit from a recently added oil service subsidiary through its acquisition of Song Yuan Tiancheng Drilling Engineering Co. Ltd. ("Tiancheng"). This acquisition is not reflected in the stock.

Like everyone else who owns the stock, I was disappointed and very suspicious when the accounting irregularities were exposed. But NEP cleaned house and it appears to be a past item. I kept NEP and added to the position. It still has risk and while I wouldn't recommend anyone bet the ranch on NEP, initiating a position under the Higher Risk & Higher Reward category is reasonable.

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