China New Energy Share Discussion Threads

[whentobuy] 17/8/2019 17:43

I can't see them achieving a main listing without a capital injection. HSI review their midcap's every quarter for qualifying criteria. The key for the long investor - of whcih I am quite heavy is the fundamentals improving. The GM's are good at 29-30% and the drop through good. The order book escalation provides good growth at sustainable margins with 16 months profit in the order book. This should give 1.5p eps at sustained margins and currencies. However, WIP and debtors sucked all the cash profits last year. At 10 months they must be lacking some commercial leverage. Even with this poor liquidity ratio £4m of the £7m profit that should come form this year should go into cash. This will give 80% of current mcap in cash. If demnand is sustained or increases the cash will be more than m/c in the not to distant future. If they get their credit management right the valauation becomes embarrassingly low. Obviously the health warnings apply and the wheels can come off, but there's not many better small cap punts about DYOR

[dubian99] 17/8/2019 14:28

2 things firstly revenue criteria is £50m, cnel £39m from a quick look,
and profits numerated to shareholders £2m, cnel erm zero

If it is £50m mcap criteria ..

a miraculous increase in valued ( somehow ) to 10p on AIM for HK, they wouldn't be forced to look for an alternative exchange to value it properly at erm circ 10p, eeerm ..
in fact to be stable 50m mcap share price would need to be 15p to account for mm's 30% swings on fk all,

so nothings clear to me

[bozzy_s] 17/8/2019 14:21

Topinfo's trades would've been the 2 x 143884 (each exactly £2000) @ 1.39p from Tues & Thurs. 287768 total.

And yes looks like he sold 254068 Fri PM after others bought his ramp (that's a guess, based on the quantity ending 68 - surely not a co-incidence).

[dave4545] 17/8/2019 13:26

But if they get excepted and float on that new exchange the share should do several bags so there is a good case for a punt/gamble too

[dave4545] 17/8/2019 13:23

Scares me that people buy stocks on the back of topinfo tweets. He probably sold late afternoon.

Nothing wrong with your post lazygun, it does look too good to be true cheap. A friend read the accounts and was alarmed so I sold out. I've also spoked to Bennett directly and quite frankly I'm sick of his never ending excuses not to buy stock.

If this is the bargain of the century then why does Bennett sit on 300k of stock worth £5k (peanuts) and refuse year after year to buy more.

[lazygun] 17/8/2019 09:27

I can’t see any real downside here unless I’ve completely misread the info.

Ive bought in yesterday though it had already made the largish jump, but also after reading through the info about the expected move to the hk exchange.

I’ve seen nothing so far to indicate their business is contracting significantly, so I can only assume that the current trading year is likely to be as profitable as the last couple of years.

So, even if the hk listing doesn’t happen, given theyve stated they are committed to maintaining a listing (ie to remain on aim ) I think it’s highly undervalued.

If you assume a modest pe of 5 would be more realistic, that would suggest a mkt cap of around 25 mill vs current of 8 mln. So , I’d argue there’s potential for up to a 3 Fold gain even just for staying on aim.

For cnel to get the listing there, they’ve got to reach that 10/11 p level whilst they are on aim, so it would seem to imply a need for a reratd, and I can only see that happening if there is sustained buying of the stock in the short term.

It almost seem too good to be true...

Oh, and I only got onto this after seeing tweets from topinfo..

L.

[sep800] 17/8/2019 02:51

So much emphasis on whom is posting etc etc.. Does it matter when choosing to invest ?
If any company has potential for its share price to rise due to it decision to move into a direction where it's best suited then no poster can influence on that eventual uplift.
We invest hopefully where we see companies have the correct fundamentals are about to be transformed in every aspect.
Well done Lazy gun for stating and making other investors reason why CNEL have huge potential once moved over to the Hong Kong exchange.Its worth mentioning that some posters can provide info to new investors and share their research. We all welcome this.
CNEL are moving in the right direction, and with this all will be rewarded.I am sure when the markets have digested what CNEL are proposing, then seeing the share price rise to even 5p would be realistic in a very short period. One to buy and hold and let the transition to the HK market take its course.
Always research

[bozzy_s] 16/8/2019 23:40

Ta for that Dave. I won't be making trading / investing decisions on the actions of a renowned pump & dumper. We know the medium-term potential.

Speaking of which, thanks Lazygun for that info. I didn't know about the $500m HK minimum market cap for a listing.

Absolutely correct, as per

And from the HKSE website itself

"The expected market capitalisation of a new applicant at the time of listing must be at least HK$500,000,000 which shall be calculated on the basis of all issued shares (including the class of securities for which listing is sought and such other class(es) of securities, if any, that are either unlisted or listed on other regulated market(s)) of the new applicant at the time of listing."

So we are indeed looking at a 5+ bagger at least if CNEL gets it's HK listing.

Thanks again for that little gem of information Lazygun!

£52.47m minimum market cap if CNEL lists on HKSE (1 GBP : 9.53 HK$)

491m shares in issue

Minimum listing price of 10.7p per share

Anything under 2p is an absolute no-brainer buy-and-hold. I'll try not to be tempted to sell into a Topinfo induced spike. 30% in a day or 550% in a year? I know which I'm having

[lazygun] 16/8/2019 16:38

Well, 5 mill net profit on 492 million shares is an ultra low pe.

Profit has been maintained over last two years which is a great sign.

HK main market listing read include a requirement for the mkt cap to be $HK 500 mill, current GBP to HK$ is 9.53, means a GBP mkt cap of £52 million on 492 million shares means the share price needs to be above 10.66p per share....

So, possible 5/6 fold increase in current share price....

So, huge upside potential here...

L.

[dave4545] 16/8/2019 15:49

topinfo gave it the pump on twitter hence the interest and rise so worth watching and then offloading a few before it all goes quiet again

[dubian99] 07/8/2019 11:00

Got any news CNEL, PR, updates,

Naaaaaaaaaah
wkers

[bozzy_s] 01/8/2019 13:37

The 'can't buy due to being an insider' is an oft-used excuse by directors of rubbish loss-making basket-case stocks. A convenient line which PIs see through eventually - after months and months of no director buying and no company updates.

I hope that's not the case here. On the face of it this isn't a basket case, if the financials are to be believed. For me, they'd be more believable if directors were buying stock at this ultra-low valuation. The market already knows about the potential move to HK.

If the financials are real, and the move to Hong Kong is on course, I'd be buying shedloads as a director. However many I could get below 2p.

Time for action Mr Bennett. Is this for real, or are the accounts fictional?

[dubian99] 01/8/2019 11:29

Got any News, Updates, works in Progress, PR, Bennett,
Naaaaaaaah, neveeeer

[dubian99] 29/7/2019 14:19

aaand £335 sell takes £600k of the mcap, weeee,

Fancy buying Bennett naaah
Got any PR Bennett naaah

[bozzy_s] 22/7/2019 21:45

I'm taking today's RNS as a positive:

"The following Director and PDMR dealings have taken place in preparation for the proposed listing of the Company's shares on the Main Board of The Stock Exchange of Hong Kong Limited"

Hopefully everything on track. Multi bag if it happens.

[dave4545] 16/7/2019 11:18

mm dropped their offer on a 180 sale today.

That's £2 :-))

[bozzy_s] 12/7/2019 14:55

Yep, that's why they're valued at less than 2x annual earnings.

Market says it's too good to be true. Company needs to respond. Hopefully they are working hard on Hong Kong listing.

[dubian99] 11/7/2019 22:39

If the company think this mcap is out of whack, it is, they could do an interview and enlighten the markets stupefying ignorance,

How interesting they never ever do ..

[dave4545] 05/7/2019 10:38

There goes all the gains from last week