China Energy Corp. (fka CHGY)

[Renee]

CHGY: Going Private Transaction: 1-12,000,000 R/S cashing out fractional pre-split shares at $0.14 per share

http://www.otcbb.com/asp/dailylist_detail.asp?d=09/17/2013&mkt_ctg=NON-OTCBB

[alanthill]

You can have the shares issued in your name for free by Ameritrade and handle the dissent yourself. Ameritrade is required by law to provide you with the necessary forms, etc. It remains unclear whether an attorney will be required or not to represent shareholder interests. There are some interesting comments on the Yahoo Board.

[Nealio]

What is the latest with your plan to protest the 14c buyout? I was told by TDAmeritrade that I would have to pay for ghe process to dissent and I don't have enough shares to make $400+ cost worth my while...
Anyone else?

Best,
Nealio

[alanthill]

CHGY. PLease join other shareholders in fighting the low-ball buyout offer by CHGY. See the CHGY Investor Village Board or Yahoo Board to pledge your shares. Thank you.

[alanthill]

Better discussion on Investor Village Board. Join us there to help fight this.

[aldorains]

Where are you getting your information?

[surfer44]

Is there a buyout offer? I haven't seen anything.

[grimreaper]

14 cents isn't enough

Going private and trying to give only 14 cents. Working capital alone s/b for 50 cents.

Not sure what we can do.

[sahd3g]

yes, so I've added a couple times down here.

[CO123]

Does anyone think this is getting ready to run?

[sahd3g]

Thanks.. I didn't realize that. Have added a few shares recently.

[Nealio]

Re-Stated financials posted.
Looks like they have corrected an overstatement of revenue and net income for 2012 quarter 1 and 2, the overstatement Lokked to be about a million in revenue and a couple million in net income. For net income it changed from 12 million to about 10 million...not a huge deal. The CEO and CFO also signed attesting to the results...they had not done that before per Sarbanes-Oxley.
Financials are still unaudited.

What effect? Seems none...not sure if more restatements are to come... Anyone know?

[sahd3g]

Toucan, fyi, I'm not a premium member, so, no PM's here for me btw...

[sahd3g]

Found a little "free" cash, added CHGY for the first time in a long while. Hope that was smart. But I'd take lucky too.

[TOUCAN]

about CHGY

China Energy Corporation is a producer and processor of raw coal and a provider of heating and electricity services in the Inner Mongolia Autonomous Region of the P.R. China. The Company also buys and sells coal as part of its expanding proprietary coal trading activities.

[TOUCAN]

49 BMs

[TOUCAN]

http://www.otcmarkets.com/stock/CHGY/filings

[TOUCAN]

CHGY Charts!

[TOUCAN]

CHGY 45,060,000 O/S a/o Oct 19, 2012



http://www.otcmarkets.com/stock/CHGY/company-info

[TOUCAN]

CHGY Aug 31 2012 $188,473,952 assets - $95,152,571 Liabilities
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8936476

[bUrRpPPP!]

CHGY HOLY SMOKES! BLOWOUT EARNINGS!up 220% .26 for the Q

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8723588-7381-113322&type=sect&dcn=0001144204-12-040181

[Stream205]

CHGY: Bought more today. Free money.


The sector is coming back and CHGY is clearly the best China energy sector play now.

[Steuvin]

You are absolutely correct, there is no dilution. Ding had an option to purchase shares of Fortune from Ms. Xu when certain conditions were met. Those conditions were met and Ding exercised his right (his option) to purchase shares of Fortune. Fortune owns shares of CHGY; therefore, Ding acquired additional COMMON SHARES of CHGY (about 8 million additional shares) through his purchase of shares of Fortune.

This is clearly explained in footnote (2) on page 51 of the most recent 10k:

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8483586-839-350476&type=sect&dcn=0001144204-12-014840

The shares held by Fortune were not newly created and no dilution occurred. The total outstanding shares is as stated in the recent 10K and 10Q.

There are only a minimal amount of CHGY stock options outstanding (about 100,000) and all of them have strike prices above the current market, many at well over $1.

So helpme_hanna

[silverback1]

There is no dilution. Look at the Q1 report. Number of shares hasn´t changed.

[jpkpk0k0]

Thanks Alan, new question,,, how do you interpret the announcement today that Ding picked up another 9mm shares via options?!?!

That's some serious dilution for the rest of us in one swell foop. Did anyone know that option existed? Is this a first step toward taking the company private?

Any thoughts are appreciated.

[alanthill]

Nothing new that I am aware of. Still waiting for acquisition news.

[jpkpk0k0]

Alan or Microwzy,,, any news or insights to share on CHGY? The news today regarding China's new rules around currency trading sound bullish for CHGY.

Thanks in advance.

[Mo-John]

They should declare a .20 dividend. That would be an automatic game changer!

[alanthill]

CHGY in 2012


Microwzy, a Chinese PhD engineer, and I have been reviewing China’s 12th Five Year Plan (available in English on the Internet) to see how it might impact the future of CHGY. We focused on the coal industry for the next five years and our conclusion is that significant changes are just over the horizon for CHGY. Inner Mongolia, where CHGY is located, was singled out as a focus for development in the plan, and is already China’s top coal producing region, producing almost 25% of the domestic coal supply. That amounts to about 800 million tons a year with better than 700 billion tons yet in reserve.

A focus of the Five Year Plan is to dramatically increase China’s energy supply with an emphasis on coal production in the short term and green energy alternatives longer term. Inner Mongolia, while the largest coal-producing region, has a large number of small inefficient mines. A government focus for some time has been to consolidate and modernize the mines in the region and has reduced the number of mines from over 1,500 in 2005 to fewer than 500 today. The Five Year Plan calls for a further drastic reduction, consolidation, and modernization, in the mining process. Inner Mongolia will form twenty large-scale coal companies by the end of 2013, each with a production capacity of more than 10 million tons and with projected profits of ten billion Yuan (1.5 billion dollars). Additionally, the government plans to establish one or two giant coal companies, each with more than 100 million tons of production capacity. Smaller coal companies currently operating in the region with less than 1.2 million ton capacity will be eliminated.

Inner Mongolia is strategically located between the northeastern and western provinces in China, and both areas are a focus of the government’s plan for increased industrial and manufacturing capacity over the next five years. To serve these markets a two fold approach is proposed. First a dramatic emphasis on railroad infrastructure that will result in over a 50% increase in the shipments of coal by rail by 2015, and an increase in electrical power generation capabilities within Inner Mongolia. The government projects that it is less expensive to build the coal powered electric generating plants locally in Inner Mongolia and transport the resulting power, than it is to move large quantities of coal long distances.

What does all this mean for CHGY? 2011 production numbers are not yet available, but based upon the recent earnings announcement I would judge them to be at or slightly above the 1.2 million ton cut-off point. Whether CHGY gets swallowed in the planned coal mine consolidation or emerges as a much larger player depends on two main factors in my opinion: past performance and political connections. To my way of thinking CHGY has done everything right. They invested millions of dollars a couple of years ago to fully modernize their mining operations to long wall mining, at the same time putting in place the latest safety equipment and procedures. They have met or exceeded every quota the government granted them for increased production, coal trading and the expansion of rail allotments. They have never experienced a fatal accident and have ramped up production recently to meet the governments’ 1.2 million ton threshold. Most importantly however are WenXiang Ding’s political connections. As the former Chief Accountant and Operations Director of Inner Mongolia Coal of the Peoples Republic of China General Political Department Mr. Ding is exceptionally well connected with the Inner Mongolian officials who will be calling the shots on the consolidation process.

If CHGY is chosen to become a consolidator for several of the smaller mining operations with a total production capacity exceeding 10 million tons they will become a very different company all together. Of course there will be share dilution and additional debt as a result of the merger and acquisition process but the end result will be hugely accretive to CHGY. The mines being consolidated are being combined under government mandate and have little bargaining power to control the outcome. I would expect the merger and acquisition process to accelerate rapidly this year and be pretty much completed by early next year. If the government forecasts are anywhere near accurate let’s assume that CHGY would benefit directly after share dilution and debt burden by just 10% of the government’s forecast for net income of the consolidated mines. That is a staggering 150 million dollars or more than five times last year’s stellar earnings. In the event that CHGY is itself a victim of consolidation, I have to think that they would be treated fairly, once again because of Mr. Ding’s strong political ties to the Inner Mongolian government bureaucrats. All in all 2012 should be a very exciting year to be a stockholder.

As we all know very well one of CHGY’s glaring shortcomings is shareholder communications. Microwzy, who speaks fluent Mandarin, has graciously agreed to call the company from time to time as issues arise that require clarification or further exploration. If you have concerns or questions that you believe the company can legitimately respond to post them here and when we have sufficient inquiries we will make a direct attempt to speak with management.

[alanthill]

.63 EPS and CFO on Board

[Nealio]

News: the former CFO has been hired on an interim basis until a new CFO can be hired. I assume this is to complete the annual earnings report. Maybe it is just to get am official signature on that document. Hmm stock seems to have a muted response to this. No real movement. So we wait for earnings early next month.

[Nealio]

Well written post on anticipated earnings and the facts around the company at this date:

CHGY is scheduled to file it's annual report on March 1. I will not be surprised in the least if they request an extension (as they did last year, even with a CFO in place). I am expecting a minimum of .53 cents a share and more likely in the neighborhood of .60 in earnings. They have ramped up their mining activities, increased their coal trading business and extended the reach of Heat and Power to additional customers. In 2010 they earned .39 for the entire year. This year they earned .42 through Q-3. Before 2010, CHGY received a significant government subsidy in Q-4 for providing heat at below market rates. In 2010 they received the subsidy in Q-3. In 2011 there has been minimal subsidy payments received through Q-3. Unless the government has abandoned the subsidy (hard to believe because they regulate the below market rates) CHGY should have received a whopping subsidy in Q-4. If you couple the anticipated subsidy payment with the strong earnings from the coal group we should see approximately .60 per share in earnings. Even if no subsidy is paid in Q-4 earnings will be approximately .53 per share, a 33% increase over 2010 earnings, even without the subsidy. So, place your bets. Do you believe, as some do here, that CHGY is a scam set up only to benefit Mr. Ding, or do you believe this is a legitimate enterprise, with exceptional management that has established themselves as a primary coal supplier in Inner Mongolia. CHGY is not without it's warts (they care little for shareholder communications, financial controls obviously need tightening, and most importantly they have been slow to identify additional accretive coal mine acquisitions........the primary catalyst that will propel the stock above the pennies it currently trades for.) All that being said, I am a happy shareholder at these levels, and hope to see a return to a more realistic PPS sooner rather than later.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=68182&tid=3598&mid=3598&tof=2&frt=2

[sahd3g]

Holding these grossly undervalued china crap stocks is like being stuck in a black hole. Even if they triple in a day, why sell such undervalued stock?

Lack of liquidity, crazy bid ask spreads....wtf??? dont' the jokes in china realize they are screwing themselves.??

[sahd3g]

This whole sector is trash now, pretty much all crap regardless of "untrusted" fundamentals. Unreal just how sad this sector remains.

Landmines evidently are not cleared...too many investors have sworn off this sector...so it's not likely even a probable diamond in the rough like CHGY will get up to a realistic valuation any time soon.

Patience will hopefully rewarded in a big way.

Happy Thanksgiving everyone.

[tbirdman]

They need a pr firm. Period.

[alanthill]

CHGY is finally starting to move on significant volume. There are a whole bunch of catalysts that are going to make this take off like a rocket as the potential becomes better understood:

1. The float is less than 10 million shares.
2. They have recently significantly increased production in the mine they operate.
3. The government has granted them a large increase in their allotment of coal that they resell from other mining operations.
4. They are actively looking for accretive acquisitions and are favorably positioned with the local government to pick up additional mining resources.
5. I believe that they will be receiving about a 6.5 million dollar subsidy from the local government in Q-4 which flows directly to the bottom line (+.14 per share). The government sets the rates that Heat and Power can charge to it's local customers (which is below their operating costs). Once a year the government pays a subsidy to compensate CHGY for the lower rates charged. Last year the subsidy was received in Q-3...in all previous years it was received in Q-4. Based upon the amount of last years subsidy and the increase in customers served by Heat and Power the subsidy should come in at about 6.5 million.
6. Additionally, CHGY has been positioning itself to upgrade to a higher exchange. The general distrust of all things Chinese and their depressed share price has prevented this from happening to date. Once the share price starts to run, which seems like pretty much a sure thing, they will be looking to upgrade.

Given all of the above factors I believe CHGY is going to be the next TSTC, LPH, LLEN, etc. etc. The last time it ran up, it did so in a very big hurry. I don't expect this time to be any different.

[Stream205]

China a buy now?


http://www.topstockanalysts.com/index.php/2011/11/03/is-it-time-to-buy-china/?utm_source=NL-TopStockAn&utm_medium=EMAIL&U=669016&utm_campaign=TopStockAnalysts.com_TSA_Digest-_11-4-1111/4/2011

[Traderfan]

The stock will hardly move up if they don't bring out the earnings PR of the last quarter.

[sahd3g]

When will this one be back over a $1??

[bUrRpPPP!]

CHGY HUGE NUMBERS OUT! http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7865472

[Nealio]

Quarterly Report: delay notice filed and info about revenue and profit given in delay notice. Looks like a good report with big increases in revenue and earnings. Should see a pop when the report is released.

[ErnieBilco]

8K sept 21st

http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8156338

[tbirdman]

oh yeah, i'm sure supposed to be revamping the CHGY board...woops!

[bUrRpPPP!]

zzzzzzzzzzz,zzzzzzzzzz eom

[confissius]

bought this stock at 0.8 and selled it a months later and next day it was going up and up al the way over 4 bucks

[WILD_4_IPIX]

Question

To anyone willing to respond with a thought, opinion or ? Appreciated.

I've bought 30K shares over the last few weeks with an ACB of about .51......I was thinking based on some DD and what I read there was some decent UPSIDE and that there was " SOMETHING IN DEM DARE MINES ".......so far I just take a beating almost daily. Should I take my loss and skidaddle or hang on for eternity or at least until I make some money or the MINE BLOWS ! So far the lack of volume and movement up is underwhelming and BLOWING MY MIND !

ANYBODY ? And thanks in advance !

GO CHGY !

[WILD_4_IPIX]

Loaded UP BIG and awaiting some expected FIREWORKS !

GO CHGY !

[sahd3g]

This should be way over $1 minimum imo. Strong hold...wish I had bought more down here...but cash is tight!

[nsomniyak]

it moved on the Q all right :)

[bUrRpPPP!]

10Q Revs up 57% adj eps .118 ......

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65406245&txt2find=chgy