Aggressive tactics for investing in China oil = RCON
If Investors don’t feel comfortable putting their money directly into China, they should still be well aware of China’s energy strategy. Considering previous actions by China’s state-controlled oil giants, it’s more important than ever for investors to take a close look at how China’s oil companies do business. Because when it comes to energy, China isn't particular about where it gets it from. It’s just hell-bent on getting what it needs.
China has 3 major energy companies:
China National Petroleum Corp., PetroChina or CNPC
China Petroleum & Chemical Corp., or Sinopec
China National Offshore Oil Corp., or CNOOC
All 3 are ranked in the top 10 largest refining companies in Asia, if not the world. And considering the continent’s size, growth projections and energy needs… those companies seem destined to stay near the top.
Sinopec, for one, is obviously intent on moving up in the world. By last year, it had already spent over $32 billion in mergers and acquisitions. Sinopec conducted a $7.24-billion takeover of a Swiss exploration company, Addax Petroleum Corp.
The same aggressive tactics go for China National Petroleum Corporation…
How Do You Profit as Investors?
According to MarketWatch, “In 2011, the total mergers and acquisition value of China’s 3 biggest oil companies – CNPC [a.k.a. PetroChina], China Petrochemical Corp. or Sinopec, and China National Offshore Oil Corp. or CNOOC – reached about $20 billion.” Yet just a few years ago, they accounted for a mere fraction of that number. So there’s significant growth taking place. Unfortunately, state owned Chinese oil companies don’t make the most aggressive investment choice. They’re notorious for spending more than they need to for exploration, development, and mergers and acquisitions.
Instead, of investing in state owned Chinese oil companies, take a look at NON state owned companies like
RCON an undervalued opportunity that makes a likely takeover candidate for the Chinese oil companies and others.
Wright Investors Service did a nice Comprehensive Report for Recon Technology, Limited that has peaked my interest and holdings in RCON. I wonder how many have read that report, well worth spending the money on IMO.
RECONSTRUCTION TECH (NASDAQ:RCON) Uptrend
Smart Scan Chart Analysis confirms that a short term counter trend move is underway. When this action is over look for the longer term positive trend to resume. Uptrend with money management stops.
Based on a pre-defined weighted trend formula for chart analysis, RCON scored +80 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Tuesday
-20 No Data for 20 Day Moving Average
+25 New 3 Week High, April 16th
+30 New 3 Month High on November 15