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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (29810)	1/25/2008 8:36:26 AM
From: gcrispin	Read Replies (1) \| Respond to of 78744

I also bought some chang this week, a stock I owned and sold last year. I wasn't crazy with the third quarter figures and the recent 8-K means there is more dilution on the horizon. biz.yahoo.com But the SNEN CC transcript added some color to the CNG business in China. Below is an excerpt "The CNG vehicle market continues to experience strong demand and support from both the public and the Chinese Government. Last month, the National Development Reform Commission, or NDRC, instituted certain policies to encourage the use of CNG powered vehicles, such as mandating wholesale natural gas pricing for the CNG vehicle industry and granting vehicles using CNG priority access to natural gas supplies. In addition, the NDRC requested the provincial municipalities increase the local CNG retail price so that it falls between 60% and 75% of the local price for 90 grade octane gasoline. This policy was designed to improve the profitability of CNG filling station operators and therefore encourage greater investment in the sector. As a result of the new policies, Hubei Province municipal government raised prices from $0.40 to $0.45 per cubic meter. Wuhan City implemented this policy on November 19th and Sinoenergy's two stations are now selling CNG to vehicles at higher retail prices. To a CNG filling station selling 10,000 cubic meters of CNG per day, this could increase net income by approximately $73,000 per year. We view the development of our wholesale and retail CNG distribution business as an important contributor to future ongoing revenue and profits. With the opening of natural gas pipelines to cities in Eastern and Central China, and with strong government support for CNG vehicle business in place, we expect rapid growth in the use of CNG vehicles and associated infrastructure." I like CHNG's business model better than SNEN. The company's guidance for 08 is as follows: "The Company continues to expect net income to increase 70% to $9.3 million in 2007 from $5.5 million in 2006. For the year 2008, the Company continues to anticipate revenue and net income growth of at least 70%." Assuming they grow "at least 70 percent" and there is added dilution to the 27 million outstanding shares, you still could have a stock selling at a ten to eleven PE.

To: Jurgis Bekepuris who wrote (29810)	1/25/2008 3:59:16 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78744

About MHP. The stock price is historically cheap. When it's been this low before I have bought. I am not sure this time though. Here are some considerations: A cyclical part of the business is their textbook publishing. I'm not sure but it seems to me the cycle is starting up again (schools buying newest editions), and so this is a positive for the company. Mr McGraw apparently likes his Business Week. There is some question in some peoples' minds as to the relevance and viability of such a weekly mag. in a world of internet. In any case, MHP is Mr. McGraw's fiefdom. The key franchise is Standard and Poors and all that it delivers. My idea is that there's a possibly strong competitor waiting. And that is Mr. Murdoch when he turns his attention to his Dow Jones. That is, imo, the DJ industrial average is staid now. There could be though a DJ 500, a DJ money management or money rating firm (ala what S&P has), and so on. Anyway, A good quarter reported yesterday, it seems to me: investor.mcgraw-hill.com