I am putting SNEN back on the buy list for all of the reasons I have stated prior. The company is well run, is starting to accelerate the opening of new stations. Soon, the company will be generating a significant free cash flow. I don't fear a down turn in China given the fact that this company is an infrastructure play and will benefit from the recent creation of wealth in China that has driven up sharply the number of cars on the road. Although I am still very bearish on the market in general, I am bullish on SNEN. It is illiquid, however, so it can suffer from wild price swings in the mkt. Buy the dips on this one.
Recently, a friend who just visited China and SNEN showed me photos of the stations. They all had cars lined up around the block.
$5.0 (09/30/08)
