02032010 SINL WATCH LIST: CHNG NEP PAP
Wednesday, February 3, 2010 at 1:38PM I added China Natural Gas, Inc. (CHNG) to my personal portfolio today. CHNG is optionable if you want to hedge downside risk on the outright purchase of CHNG shares or just play the options side without taking down a long position in the stock. This is a very high risk / high reward investment so don't use your grocery money to play with CHNG.
It's no secret, China needs lots of energy to fuel the country's explosive growth. From an equity perspective, almost all of the focus has been on China's oil sector. If you have been an SINL subscriber you know that option plays on Chinese petro sector stocks like PTR, CEO, and SNP have played an important part in the success of the SINL Model Portfolio. I think there is value in China's natural gas sector that has been largely ignored by investors because natural gas makes up such a small percentage of China's energy mix.
I like the analysis of CHNG that Diego Stendardo did back on September 21, 2009. So, take a look at that and visit the China Natural Gas, Inc. site to get a better idea about what CHNG is all about.
Next up, China North East Petroleum (NEP). NEP is an optionable China oil exploration play whose operation include the operation of oilfields in China under leases with PetroChina (PTR).
Rounding out this trio of stocks is Pacific Asia Petroleum (PAP) an optionable oil and gas exploration company with crude oil, coal bed methane and gas distribution operations in China.
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