Replies to post #59428 on China Growth Stocks

[tenenbaum]

NEP - I currently don't have a long or short position in the stock, but I was also in from the CNEH days and sold on the run up earlier this year. I agree that the stock seems quite cheap at these levels, but I am concerned about current/future production as well as the increase in PTR's take that begins in 2012. At this point, it seems like they had better be drilling quite a bit to stay ahead of their production declines or be getting a new lease. I'd feel better about getting back in if we had some new news regarding both of those points. At least the drilling business seems to be firing on all cylinders.

[Traderfan]

NEP, the problem as I see it is really how all the china stocks reacted after just minor disappointments on their Q3 numbers. Just look at 25 stocks in this space and how they have done after earnings. Of course NEP could be different but the question is whether I'm willing to take that risk. Over the mid term all of this doesn't matter I guess.