Replies to post #87759 on China Growth Stocks

[BigOnChina]

I'll respectfully disagree with you.

NEP is not some unheard of company in the middle of nowhere. They're a publicly traded name on an American stock exchange. I'm pretty sure the legal department at Petrochina would be on top of it if their production and sales numbers didn't add up.

Want to know for sure? Pick up the phone and call Petrochina and ask them how much oil they purchased last year from NEP.

And on top of Petrochina, NEP just purchased drilling rights from China Kinwa High Technology Co., Ltd, a company that is listed on the Chinese stock exchange.

NEP has done everything right from an SEC reporting standpoint as well as investor cummunication.

Just because there are some chinese frauds out there does not mean NEP is one them. If you're going to say they are, I'd like to see some factual information to back it up.

[grimreaper]

NEP....Its not that difficult for auditors to confirm the relationship with PetroChina. For the end of the year audit, you select 2 or 3 months and send a confirmation to PetroChina asking them if NEP sent over xxx number of barrels of oil for the following months. Its all computerized and should be simple for PetroChina to confirm. Then you compare what PetroChina confirms and what NEP has on their books. Typically if there is a legitimate relationship, the only problems are end of month timing issues.