I bought at 3.20 or something like that and then sold when it took its big dip the first week of august at 5.50 or something, great return. it just got over another big dip and i didn't have any cash available, otherwise i would have bought at the 4.75 level. in short, i like the story. they are growing, opening up more and more filling stations and are starting to expand outside of Xian. I wouldn't mind getting back into it because i think there will be more growth. they have no debt. and i think they will be picked up by a real exchange soon. They hired a few guys to open their office in NYC for this reason.
can't say it isn't risky, but i like the stock. anyone else?
damnit... i wish i got back in when i said i wanted to....
China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced that it received government approval from the Shaanxi Province to pursue a diversified natural gas project, which when completed will enable China Natural Gas to produce various natural gas products, including liquefied natural gas ("LNG"), liquefied petroleum gas, dry ice, and sulfur. As part of the project, China Natural Gas plans to complete an LNG processing and distribution facility in Jingbian County, Shaanxi Province, in the first half of 2009.
The Company held an opening ceremony on September 20, 2007 to celebrate the beginning of the project. The governor of Jingbian County in the Shaanxi Province, representatives from the Development and Reform Commission of the Shaanxi Province, representatives from the Development and Reform Commission of the city of Xi'an, as well as Company delegates and consultants from Chemtex Engineering Co. and PetroChina, attended the opening ceremony and spoke in support of the project.
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "We are so pleased to successfully gain government approval to pursue our diversified natural gas project, which when completed will be the first LNG facility in the Shaanxi Province and we believe will be the second largest in China. The approval process for projects of this type is lengthy and arduous -- a factor which we believe is a significant barrier to entry to potential competitors and which better positions our company for long-term growth. This project also allows us to diversify our business and focus on two high-growth areas at once, our CNG filling station business and the distribution and sale of other forms of natural gas, like LNG. Overall, we believe that the PRC's clean energy policies will bolster demand for natural gas in China and, with today's announcement, we have government support to be a leader in this exciting sector."
Management is currently working with Chemtex Engineering Co., one of the largest engineering consultants in the world and which has proven experience in the engineering, design and construction of similar projects in China. The Company estimates the cost of phase one of the project, which includes the design, engineering and construction of the LNG facility, to be approximately $40.0 million. China Natural Gas expects to fund this project with existing cashflow although the Company may also raise funds through the public or private sale of debt or equity. Costs and future revenue associated with the LNG project are not currently part of the Company's existing financial guidance. The Company continues to anticipate 70% revenue and net income growth in 2008.
Established in 1995,
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