China North East Petroleum Holdings, Ltd.(fka CNEP)

[bUrRpPPP!]

Here's one opinion from Yahoo message board.

There are lots of ways of valuing NEP. Here's one:

1. 2010 revenue based solely on existing leases @ $70 oil = $70 million. .30 margin = $21 million earnings. $21 million divided by 31 million shares = $.68 per share from oil earnings on current leases.

2. Drilling earnings: 220 wells at $330 thousand per well = $72 million in revenue. $72 million X .30 margins = $21 million earnings. $21 million divided by 31 million shares = $.68 per share from earnings on drilling operation.

3. New leases on land containing about the same amount of oil as current leases. At least $.25 per share and increasing rapidly as the wells come on line year after year.

Total earnings in 2010: .68 + .68 + .25 (and increasing rapidly after 2010) = $1.61.

The above might be a bit too high or a bit too low, but it is certainly in the ballpark as far as I can figure.

Is a market price of $4.60 too high or too low for a stock that will earn in the neighborhood of $1.61 per share in 2010?