| Company Address 445 Park Avenue 10th Floor New York, NY 10022 |
PSD Comments Oil is a hot potato right now that nobody seems to want to get stuck with. That means it is definitely worth taking a look at. This particular Chinese, although New York based, oil holding company is uniquely positioned in relation to other OTC BB and low priced energy companies right now. Their stock price has held steady with the price of Oil over the past few years whereas other stocks in this range have fallen much further than where they started. If the economy is at or near a low point right now, that means that Oil will likely be as well. We have also seen a tiny perking of prices very recently indicating a possible short term surge. Wayne Andrews of Raymond James Equity Research said in a research note recently that he expects crude to reach a price of $60 a barrel next year. Andrews cites current low oil prices and the subsequent cut back in project investments, along with flat and declining non-OPEC supply and little excess OPEC production capacity, as the primary drivers for future higher average oil prices. "As financial markets normalize and the global economy recovers over time, we project a rebound in prices as the market increasingly incorporates a scarcity value premium into prices," he said. Besides the price stability, there are other reasons we like this stock as compared to other Micro Cap Oil companies. Technically speaking the stock seems to have a nice floor right now just below 2 dollars. The company has see increasing revenues, profits and earnings quarter over quarter and year over year. Their balance sheet is strong with plenty of shareholder equity, also increasing quarter over quarter and year over year. Throw in a tiny float of just 13 million shares and a company with almost 40 cents a share in cash trading right at book value, and we see a lot of potential in this company with less risk than most in this area. |
Business description China North East Petroleum Holdings Limited, through its subsidiaries, engages in the exploration and production of crude oil. The company holds interests in the Qian'an 112 oilfield comprising 5,115 acreage; Daan 34 oilfield, including 2,298 acreage; Gudian 31 oilfield comprising 1,779 acreage; and Hetingbao 301 oilfield, including 2,471 acreage located in northern the People's Republic of China. As of December 31, 2007, it had 157 producing wells, including 133 producing wells at the Qian?an 112 oilfield, 11 producing wells at the Hetingbao 301 oilfield, 7 producing wells at the Daan 34 oilfield, and 6 producing wells at the Gudian 31 oilfield. The company is based in New York, New York. |
| Market Cap: 37.49M Shares Outstanding: 19.22M Float: 12.88M % Held by Insiders: N/A |
| CNEH (OTC BB) Year Founded 2003 # of Employees 312 Employees Website www.cnepetroleum.com |
| 3 Months Avg. Price: 2.19 1 Month Avg. Price: 2.06 10 Days Avg. Price: 1.93 5 Days Avg. Price: 1.99 |
| 3 Months Avg. Volume: 77.74K 1 Month Avg. Volume: 65.87K 10 Days Avg. Volume: 53.93K 5 Days Avg. Volume: 49.68K |
as of 12/8/08
as of 12/8/08
as of 12/8/08