Well, it’s about time we finally get the updates on NEP we were looking for.  The numbers look very good for 2010, I estimate GAAP earnings to be around $1.50 for the year, which places the stock firmly above $8 at a depressed P/E ratio.  They had two issues with their accounting, one minor issue being non-cash warrant issues which didn’t really affect anything.. the other was a major issue, it involved their accounting on the depletion of their assets. Now that it’s over with the company needs to address a few things. 
That does NOT mean I would be buying it unless it really gets weak when it opens.  It will eventually overcome the negative stigma in which it has created for itself, but it may take some time.  The good news is the company is “clean” now, new people, new controls, and a much more serious view on shareholder communication.
Here are the key things I am looking for from NEP going forward;
– Communication Communication Communication:  They need to over compensate for the next few months in order to gain some credibility back. It’s very important that management gets this, and I would encourage all of you to contact Bill Zima and tell him the same thing.
– Timely accounting, better controls:  This should be needless to say, but when the company makes a commitment they better keep it.  They can’t say one thing and miss timelines and deadlines.  Under promise and over deliver.
 – A growth plan.  This must be put in place immediately.  They need new leases and/or they need to break out of China and start making real money away from Petro China.  Either that or they need to renegotiate the amount that is to be paid to Petro China over time.  This must get taken care of immediately or the stock is a sell. 
So, good news, relief, sleep easy.. whatever.  We still need answers though, so be aggressive and contact investor relations!



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