Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese oil producer China North East Petroleum
With that in mind, let's take a closer look at China North East's business and see what CAPS investors are saying about the stock right now.
China North East facts
|Headquarters (Founded)||Song Yuan City, China (1999)|
|Market Cap||$172.9 million|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$106.6 million|
Acting CFO Shaohui Chen
VP Production/Operations Li Guo Yu
|Return on Capital (Average, Past 3 Years)||30.9%|
|Cash/Debt||$50.5 million / $2.75 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 542 members who have rated China North East believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars tdomalley and mrindependent, both of whom are ranked in the top 2% of our community.
Just last month, tdomalley tapped China North East as a bargain opportunity:
Small cap oil company that has had its stock price beaten down by questionable accounting tactics. Appears to have straightened that out, so am willing to take a chance now based on nation's huge appetite for fuel. Still a long-term play.
China North East is down roughly 40% over the past year, but with an exclusive 20-year lease on its largest producing oilfield from PetroChina
CAPS All-Star mrindependent elaborates on the bull case:
This stock is still reeling from the restatement of its 2008 financial results, which occurred several months ago. I think the financials are basically in line and this company appears to be positioned for massive success as a favored driller for Petrochina. Simple business model, focused management. Will be a multi-bagger unless fraud runs deep. I am putting real money on this.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chevron is a Motley Fool Income Investor selection. The Fool owns shares of Ultra Petroleum and ExxonMobil. Try any of our Foolish newsletter services free for 30 days.
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