China Biodiesel Share Discussion Threads

[campomar2] 05/8/2009 08:05

Mikeja: GOvernment subsidies will be no where near £3 million I just dont know how you can come to that figure.

Congratulations though you and I have backed a big winner here.

[tim00] 05/8/2009 08:02

Production was 26095 tons in 2007 and 25273 tons in 2008. With the new 50,000 ton plant up and running permanently since March, something around 35,000 tons looks achievable this year? ie a 40% increase on 2008.

[mikeja] 05/8/2009 08:00

My eps is based largely on gov subs,which I expect to be about £3m for this yr,judging from Q1.Part of these is VAT rebates, as production rises these will rise as well.I am looking for H1 eps of 2p and 4p for H2.

[robandkerry] 04/8/2009 22:01

I dropped a few today, only because of the steep rise. I felt it had to drop back as profit takers sell out. I still hold a few, and will top up if the price falls to around the 10p mark.

I think GBP could go the same way as this one. Chart is starting to recover. Cheap at any price below 7.5p imo.

[tim00] 04/8/2009 20:10

If you're right about those earnings projections mikeja, and personally I think they're optimstic, the CBI share price won't be less than 40p when the 2009 results are announced. 60p would be more likely. Low pe ratios are generally an indicator that the earnings outlook is deteriorating: current earnings are high in relation to future earnings. But we are now entering the upswing of the economic cycle: share prices are rising sharply as earnings projections are steadily revised up. Pe ratios are thus rising as share prices increase in anticipation of higher future earnings. Using a per of 2 for CBI is laughable.

[mikeja] 04/8/2009 19:11

My best estimate for eps is 6p for this yr and 12p for next,so pe wld be 2.5 and 1.3.A lot of this is direct gov sub.The important thing is that CBI has total gov backing,they will want them to build more plants.Anyone going short of this,with a free float of less than 8m shares is asking for trouble.

[tim00] 04/8/2009 17:00

PER for Sinopec Shanghai, quoted on NYSE:

Citi analyst says, "Valuation no longer attractive; prefer exposure through parent Sinopec - SPC rose 40% and outperformed HSCEI by 19% in the past month due to improved earnings visibility on refining. However, we believe the current valuation (15x FY09E PER) is not particularly attractive and downgrade the stock from Buy to Hold. Key upside risk would be stronger-than-expected domestic refining margin, but we prefer exposure in parent Sinopec given its lower valuation."

PER of 2, LOL!

[taurusthebear] 04/8/2009 16:33

Because most people on here are clueless!

Fact is that the PE on a recovery stock is a rapidly moving feast. :0)

[qipincha] 04/8/2009 16:32

HI everyone,

Where did you get the P/E value of 2?

I have check the P/E value of this company in the past, it was:
12.5 in 2006
7.8 in 2007
4.5 in 2008
the value is changing all the time!
so why use 2???

[campomar2] 04/8/2009 16:31

They are. Look at some of the big names. They are all on P/E 2. Have you not done any research?

[tim00] 04/8/2009 16:28

Campomar2, no I bought at the bottom and will hold for the long term thanks.

[tim00] 04/8/2009 16:27

Where do you get this nonsense that petrochemical companies in China are trading at a PER of 2? Incidentally, CBI is unleveraged, unlike a larger AIM listed Chinese petrochemical company, HAIK.

[campomar2] 04/8/2009 16:26

tim00: you are talking rubbish. Bought at the top have we?

[ayesha4] 04/8/2009 16:25

pot kettle black dude, the average PER is 2 in this sector, yes 2!

They need to turn a profit of near £4m to justify todays price.

[campomar2] 04/8/2009 16:22

Net assets are irrelevent if they cant make decent money. Ayesha4 is closer to the mark than the other posts on here; I made the same mistake in thinking that this was like other shares with a P/E of 12; but this sector is valued at lowly P/Es around 2; sounds too low, but thats the way it is. So even if it makes £1 million, its valuation is stretched right now whether you like it or not.

[qipincha] 04/8/2009 16:21

ayesha4, u cann't evalute a share just based on its profit. If that's correct, whoever bought RBS should cry out as the profit is negative!!!

[1taff] 04/8/2009 16:10

Market cap of only £7m with Net assets at approx £18 million? sounds good to me.

[ayesha4] 04/8/2009 16:02

why, so you can carry on misleading others?

The market cap is £7m

The profit for 2008 was £0.45m

Hardly earthshattering.

NAV means nothing in this market. Especially Chinese companies.

[risk1] 04/8/2009 15:57

if you have sold go away please

your getting on my wick

[ayesha4] 04/8/2009 15:56

yes, the PER is 14

[tim00] 04/8/2009 15:54

45.4 million shares @15.5p = £7 mn.

[risk1] 04/8/2009 15:52

oh dear someone sold too soon

now the train has left the station

never mind