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China North East Petroleum (NEP) revisited

October 6th, 2010 · No Comments

No comments on unusual market activity, although it’s not so hard to figure out where that unusual market activity is coming from..
NEP seemed to be one of (many) Chinese smallcaps trading as ADR in America with accounting problems. Unlike FUQI, NEP escaped the resulting restatements relatively unscathed. Which one could actually take as a rather important positive.

With its tyres thoroughly kicked, that Chinese small company discount (the good suffer from the bad) should be rather less applicable to NEP compared to many others.

Enter a contract for a new drilling program and hey presto, you’ve got the material for a nice rally (basically from $4 to $7)..

Tags: NEP