China’s Black Gold
Chevron (CVX - 61.02) is reporting a $4 billion dollar first quarter profit, Exxon Mobil (XOM - 63.08) $8.4 billion, and ConocoPhillips (COP - 66.90 ) $3.29 billion. This past week these companies have been releasing their first quarter reports and many people are starting to wonder about these companies and the high oil (72)prices. I imagine the public and several politicians will be putting pressure on these companies looking for answers.
I think oil stocks are priced reasonable since they are all around 60 even BP (BP - 73.72) is at a affordable price for what these companies have been bringing in. For the profit potential some of these stocks are a great buy. The summer is coming and as the heat rises so will the prices of gasoline and from this all of the above companies will be adding on profits for the rest of 2006. These companies have the interest of many US investors, but I believe these profits from this companies will in time be the type of profits several Chinese companies will bring in.
Here are a few companies from China that could bring you more bang for your buck. China is working hard to fill their demand of oil and in doing this they are exploring all parts of the globe including parts Kenya and Cuba.
Its hard to believe that in 2001 Sinopec (SHI - 58) was trading below 10 and now they are beginning to shine. At the time they are not hitting expectations, but don’t write Sinopec off quite yet. PetroChina (PTR - 112.40) is China’s top oil company at this time that is competing against the oil companies from the west. PetroChina and CNOOC (CEO - 82.68) was trading below 20 just 5 years ago. China Petroleum & Chemical (SNP - 64.30) who has a joint venture agreement with Mitsui Chemicals and BP to help bring Exxon type profits. China Petroleum & Chemical was around the same price as PetroChina and CNOOC 5 years ago. This is a list of the oil companies from China that will allow you to find your black gold.
There are many companies out there, regardless of they exchange they trade on, that may be a scam (may I remind you of World Com and ENRON?)… It is completely unfair to pinpoint micro caps or small caps as the leaders in unsafe securities. If you have done your research about what exactly the OTCBB is or what the Pink Sheet is (and yes the Pink Sheets only provide a quotation system and not any disciplinarian tracking or regulatory structure accompany its listing) that DOES NOT mean the companies that trade there are not viable candidates for strong potential investments. There is a lot of influence that comes into our market place, regardless of the size of capitalization; whether it is a bad report from the feds, or a negative CPI index, a poor analyst overview of an industry, or a bunk underwriter. ALL of these things can potentially harm ANY equity. Unfortunately, because these micro and small cap securities are in their infancy and do need their hand held, often what we find is an even greater lack of liquidity and a resistance in the market place to push these stocks higher, regardless of their potential on the fundamental side (please do your research on fundamental analysis if you are curious, even the strongest of stocks can be effected by ANY news at all). All securities have risk my friend…we are in the business of legalized gambling. EVERYONE pays to get there word out on the street whether it be in one form of promotion or another, do not fool yourself. However, there are people and organizations out there that DO understand the idea that all means of raising moneys affect our market place and DO take that to heart. There are reliable and credentialed individuals and businesses that understand what it means to purchase (and hold) a stock at .20 cents, not only the potential of significant profits, but this purchase could very well be beneficially sound for the rest of our economy, the shareholders, as well the patronage of that company services. Get off your high horse and realize that most great business start at the seed level and need the ears and eyes of potential investors to move forward to become the next “Big Thing” in our market place. Thank goodness for these trading forums that exist to identify and school us when those opportunities may present themselves.
Kind Regards,
http://www.hotpennystockbabe.blogspot.com