Sinoengery Corp (SNEN.OB): Strong Buy
Business: manufactures compress natural gas (CNG) vehicle/ gas station equipment and designs, develops and operates CNG filling stations in China
Shares out(mm): 28.9 (23.9 reported in 2Q10Q and est’d 5 from Abax deal)
Mkt Cap (mm): $123 ($4.25/share on 10/16/07)
Highlights:
- expects to have 30 CNG stations in 2008 and at least 40 in 2009 (70 eventually)
- operate in Wuhan, Pingdingshan and Xuancheng
According to company press release on 8/16, management estimates:
2008: 45-47 mm rev; 13-15 net
2009: 70% revenue growth (implies net of 23.8mm if margins stay constant)
These imply PEs in 2008 of 8.8 and 2009 of 5.2.
I bought this stock thru Fidelity, but was unable to purchase thru TD Ameritrade, and I believe is restricted by other brokerages as well. They expect to list on the Nasdaq National Market at some point which should increase potential demand.
References:
Westminster Securities report
10/07 private placement
8/16/07 guidance
2007/2Q 10Q
