PetroChina shares could double in Shanghai IPO

timesonline ^ | November 5, 2007 | Jane Macartney in Beijing

[Flavius]

Shares in PetroChina, the largest oil and gas producer in China, will list in Shanghai today and are expected to double their initial public offering (IPO) price of 16.70 yuan (£1.07).

That price would boost PetroChina’s total market value to more than $800 billion (£384 billion), making it the world’s biggest company by market capitalisation, overtaking Exxon Mobil’s $510 billion.

[Flavius]

this is why he's the best...

Buffett Sales Of PetroChina Fly Under Radar Forbes, NY - Oct 11, 2007 JPMorgan analyst Brynjar Eirik Bustnes estimated Buffet has made about 600% return on his PetroChina investment, basing his calculations on the difference ... HKG:0857

[rebel_yell2]

Less than half of Exxon's earnings but a much larger market cap--that makes sense.

The SHSE is in a bubble like the NASDAQ in 1999 and the Japanese and Taiwanese markets in 1989 (index up from 1,100 less than two years ago to a recent high of 5,800; average P/E close to 100). Those all ended badly with valuations dropping by 80% or more and taking a decade or more to recover.

This one will be no different.

[Alter Kaker]

Less than half of Exxon's earnings but a much larger market cap--that makes sense.

Yes, actually it makes a lot of sense. The Chinese energy market is a duopoly, and assuming China's economy continues to expand at breakneck speed (or really any speed), PetroChina will sell more and more and more oil because they have no real competitors.

Exxon's expansion prospects are limited, which is why XOM has a P/E of only 12.72. PetroChina's expansion prospects are much, much larger.

[rebel_yell2]

That’s one hell of an assumption. I see China’s markets imploding within two years, if not sooner. But go ahead and put your money at risk! That’s what markets are all about.