NEP-you are still missing my point.
Several months ago i was contacted by a high ranking corporate insider who works at a publicly listed company operating in the energy business in China, coincidentally they also have a deal with PetroChina. Mr. X suspected that his company was falsifying it's production numbers (claimed to investors) by selling PetroChina energy product it had not produced. Therefore they could mislead investors into believing their production was higher than it really was.
I'm just done some preliminary DD on this name, and it appears there are very fishy transactions going on.
This anecdote shows why I don't care what Petrochina says. For all you know NEP could be doing the same thing, or any of the other dozen variations of fraudulent antics they could play with Petrochina.
Hell even if they produce all the oil, they still could be understating/misclassifying expenses, which is just a routine activity in CGS, and is equivalent to massive fraud.
You guys can laugh at my DD advice, but the bottom line is you cannot tell what you are buying in China without extensive DD as I described, it's just impossible. The market is pricing NEP as a fraud, therefore as a long investor you are wagering it isn't.
Given that no NEP investor I've communicated with has done any real onground DD, I wouldn't call this investing, more like gambling. Good luck
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