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China Natural Gas, Inc. Message Board

  • joshhyunc joshhyunc Aug 21, 2013 4:45 PM Flag

    243 million asset value - plant and equipment --- Question is "how real is this?"

    If it only 50% real ... shareholders value is worht multiple times higher than PPS now with #$%$ Abax paid off

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    • the only part you would have a question about is pipe
      That is keep on books as an asset even though customers paid for it at start of service
      This is just for residential service
      I believe the rest is true
      But assets for sale do not always get what cost to build or replace
      assume they have depreciated them in their 10k
      assets sell for what they bring in in profits
      So to come up what they are worth
      Take what chng would make in profit if had no debt
      In past,not necessarily now
      Companies are expected to make 10% profit in China
      So you would multiply this profit by 10 and than subtract debt,warrants penalty,and out come of US law suits by stock holders
      Other way
      What would a national pay
      Take off pipe
      Pay about 60% of that minus debt,warrant penalty,and Us court case
      If China gets cheaper gas than the 60% goes up and 1st method goes up as profits will go up
      This is happening to metal, .resources and many industries in China
      Chng is in a lot better position than many since its debt is not as large as many
      A lot of coal ,steel ,aluminum businesses.ship building will be out of businesses next year
      There is no chance many of these will be in operation next year
      Profits can not possibility pay interest on their debt
      Big get bigger and small go out of business
      Chng is small
      China wants this
      Strong national companies can compete on the international level better and there was over investing

      • 1 Reply to rbtsherman
      • lemew Aug 22, 2013 9:50 AM Flag

        you speak in questions so often, let me take this opportunity to put you on the spot. What would a National PRC company pay for CHNG? I am not looking for the txas-twostep here. What would the number be? In terms of book, multiple of current earnings, in terms of multiple of EBITDA? It does not matter. And that assumes they, the national assume all liabilities? (I recall on May 31, 2013 you wrote that a national would buy CHNG) Is it 1,2 book, 20 times earnings or 10 times EBITDA???

    • lemew Aug 21, 2013 4:59 PM Flag

      It is worth remembering that at the end of the Civil War, Carpet-Baggers from the north came to provide help for those down beaten Confederates. A story that has been repeated countless times in the era of American capitalism.

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