by Travis Johnson, Stock Gumshoe | May 17, 2010 5:15 pm
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HSE ‘s majority shareholder is Li Ka-shing. (According to Wikipedia “He is the richest person of East Asian descent in the world and the fourteenth richest man in the world with an estimated wealth of US$16.2 billion on 13 February 2009.” )
So they have a deep pocket as well as deep Asian contacts if needed, and the dividends probably function as a bit of a cash-cow for Li and the rest of its shareholders.
Is HSE ’s majority shareholder Li Ka-shing the fellow who got tossed in China prison recently? (TOPIC SWITCH)
In your oil article you mentioned 2 breweries. May I suggest Tsingtao Brewery Group (TSGTY) otc or (SSE:600600). Tsingtao (started as little local brewer by European immigrants who brought their pilsner recipes from Germany). Tsingtao’s current good circumstance stems in part from its past government partnership. During which time, over 53 small breweries all over China were merged together and refitted to produce Tsingtso pilsner. It is now a large well run company and most popular in SE Asia. The Chinese palate prefers fermented beer to other alcohol. Beer in China is like many consumer luxuries the public can now afford to enjoy on a regular basis. Despite it has market dominance in that part of Asia. The domestic China market is just beginning to grow. Despite increases in stock prices, sales in China are going to grow. Two large western brewers have had stakes in Tsingtao. The company is well managed and I doubt the government has any interest lets this crown jewel fall to foreign ownership. Mr. Chen Fashu has acquired Anheuser-Busch last 7% interest. The stock has gone up $40 USD to my way of thinking one can still accumulate a position and go for a nice ride. Reuters reported that Tsingtao Brewery Company Limited said it expected its net profit for the first half of 2009 to increase by 60%-70% year-on-year. The Company posted a profit of ($55.78 million USD) in the first six months of last year. Tsingtso and Asahi have bought significant beneficial interests in each other. (Asahi has 19% in Tsingtao They have also entered into a strategic cooperation agreement.
Hi Travis,
As expected a nice write up? What about the prospects of spinning off the asian operations? How will it affect the valuation?
http://www.reuters.com/article/idUSTRE63L3GT20100422
I am still a huge fan of CAK for the Chinese oil play. I am buying the November 2010 $2.50 call options because there is so little premium built into them. Today you can buy the $2.50s for about $1.25 and the stock is trading at about $3.50. So, you have until November for this to just rise 7% from its current levels for breakeven. Anything above that is gravy.
Hello. Apparently, NEP was halted today, news pending. The reason T1. Do you happen to know what T1 means? Thanks, Journeyman.
Anyone know why NEP is not trading? Thanks.
Finally an explanation from the company today — no news other than the continuing problem with getting their financial house in order.
They’re still quite ham-handed in their investor relations efforts on this front, and it’s certainly possible — even likely at this point — that trading could be halted until they release their correct filings and numbers. They have said that they anticipate meeting a mid-July deadline for that release, but I have no idea whether or not that’s feasible. They have had a major management shake-up and brought in forensic accountants (including one who will serve as CFO for now) who are combing through the books, and who are required to approve any expense above $10,000.
The press release they issued is here: http://finance.yahoo.com/news/China-North-East-Petroleum-prnews-3537268112.html?x=0&.v=91
From their earlier announcements, the biggest numbers as far as earnings and book value go are the non-cash adjustments to the value of their oil properties that they did incorrectly under accounting rules, but it seems the major focus of the audit is on the internal controls and over some irregularities in business expenses, including some transfers between executive accounts and the company accounts that may have been legit but that certainly sound fishy.
I don’t know what will result when they get their final numbers out — hopefully by July 14, and they’ll supply some supplemental info by June 8 — but it does seem still that the business activities aren’t impacted, they’re still producing oil and providing drilling services, and if the state of the core business is roughly in line with how it was before the shares may still represent a compelling value … though of course, you can’t buy or sell now since it’s halted and will probably remain so until they’re compliant. Just have to sit it out and wait at this point (I currently hold some options in NEP, which are also halted).
i too am a huge fan of cak..they are not only china play..in addition they have won corporate governence award [ under pap ] announced no longer a development story..no debt, and will have solid earnings next quarter..any insights would be welcome
Just a thought……….
If NEP reopens during the next week, would it open high or low to continue the sell off and gives us an opportunity to buy? I always wonder why the stocks drop so much after having even small issues with SEC. Does any body know that any stock got completely wiped out because of SEC issues. I have seen that usually on NASDAQ they add ‘D’ at the end of the symbol to indicate the problem with SEC.
Well, there is a law firm already advertising for a class action lawsuit against NEP (check out the yahoo message board for NEP). I’m guessing it will not be the only one. NEP also terminated some officers including the CFO.
The only good news is trading halted in the mid 5.00$ range — the lord only knows where this stock would be trading at the moment if it was still active!