PetroChina now valued at $1.03 trillion

Quote from Poole:

this is awesome

I hope that china index climbs to 7000 or 8000 or even 9000, so puts will just get more and more attractive

this thing is going to implode so bad its a joke
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what if it goes up another 20,000 before it imlpodes? will you get knocked out of the game?

keep some powder dry is all i'm suggesting.

i agree that its a mega bubble in china. but expereince has shown me that bubbles usually don't end when people think they will. markets tend to move much further ( up or down) then most anticipate.

i own nothing (directly) in china (wish i did though). i do own yhoo, which owns 36% of Alibaba group in China....one of the 5 businesses in the group, alibaba.com is floating 17% of their shares in an IPO on the hang seng this week. its supposed to be the largest IPO in the world since goog. gray market trading on alibaba since allocation last week shows price has doubled already, before it even trades publically.
 
Quote from forex-forex:

Ok....I did some research myself on this and on the Yahoo boards someone has posted that there is no arbitrage opportunities on this and lots of stocks on the Hong Kong exchange trade at many times the value than the same company in the US market.

So it looks like PTR is a trillion dollar company in Hong Kong and only a 1/2 billion in the US.
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PTR is the hong kong ADR, and will track the down day tonight (if thats how it ends). So no pop.
 
Quote from forex-forex:

Ok....I did some research myself on this and on the Yahoo boards someone has posted that there is no arbitrage opportunities on this and lots of stocks on the Hong Kong exchange trade at many times the value than the same company in the US market.

So it looks like PTR is a trillion dollar company in Hong Kong and only a 1/2 billion in the US.
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PETROCHINA is about to make a bull run from the flag its forming for a week or two. Nice solid sideways rest, for this great bull stock.

Watch out for the breakout exploding upwards. I am going to jump soon it does. Make some money laugh all the way to your brokerage account.
 
How can you calculate the market cap of a company that has two different share prices?? I don't think you can use either the Shanghai or Hong Kong price alone to value PTR.

How big a percentage of PTR shares are trading in Shanghai, and how many in Hong Kong?

Either way, the valuation is insane, and clearly a bubble.
 
http://www.marketwatch.com/news/story/petrochina-soars-1-trillion-market/story.aspx?guid={A1669F28-A9C7-43C1-AE36-61053AD40DE5}


PetroChina tops $1 trillion market cap in debut
Chinese oil giant leaps past Exxon Mobil to become world's largest company
By Chris Oliver, MarketWatch
Last Update: 6:46 AM ET Nov 5, 2007

HONG KONG (MarketWatch) -- PetroChina Co. shares more than doubled in their Shanghai debut Monday, giving the oil giant a $1 trillion market capitalization and easily surpassing Exxon Mobil as the world's largest company.
The shares ended at 43.96 yuan, up from their initial-public-offering price of 16.70 yuan.
The runup gave the oil giant a market capitalization of $1.005 trillion, more than twice that of Exxon Mobil (XOM:
exxon mobil corp com
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The rally in PetroChina's yuan-denominated, or Class A, shares, came despite a decline in the broader Shanghai Composite Index, which fell 2.5% to 5,634.45.
"The A-share listing is positive because it will open another avenue for the company to raise funds in the future," said Louis Wong, research director at Phillip Securities in Hong Kong.
"From the investors' point of view it's also positive because they have access to invest in the largest-market-cap oil company in the world."
PetroChina (PTR:
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Last: PTR, , ) (HK:857: news, chart, profile) sold 4 billion yuan-denominated shares in Shanghai last week, raising 66.8 billion yuan ($8.94 billion) in China's largest-ever IPO.
"The increase in the A-share price will give PetroChina a very big market-capitalization boost," said Core Pacific-Yamaichi's China equities analyst Richard Lee.

PetroChina listed shares in Hong Kong and New York in 2000 at a time when the nation's stock markets were considered ill-equipped to handle a multibillion-dollar offering.
The 21.1 billion PetroChina shares listed in Hong Kong, known as H shares, represent a market value of $48.96 billion. PetroChina's Hong Kong shares fell 8.2% to HK$18 on Monday.
The Chinese government holds 157.92 billion PetroChina shares indirectly through the state-owned China National Petroleum Corp. PetroChina's 4-billion-share sale last week represents about 2.5% of the oil giant's total shares listed there.
About two-thirds of the shares on Shanghai market are held by state entities and classed as inactive.
Valuations for the non-traded shares are based on the higher Shanghai price, rather than the Hong Kong-listed shares, Lee cautioned.
He added PetroChina ranks among the few oil majors to claim a major discovery in recent years.
PetroChina said in March it had uncovered oil and gas in shallow water areas of Bohai Bay in northern China. It said the find was the most significant in China in more than a decade.
"PetroChina is one few companies that is continuing to find major new oil reserves in the world," Lee said.
PetroChina which had 20.5 billion barrels of oil and gas reserves in 2006, is adding new reserves at an average annual rate of 5%, according to Bloomberg. Exxon Mobil reportedly had 22.1 billion barrels of reserves in 2006.
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BRKB, , ) sold its stake in PetroChina at an average estimated price of HK$11.47 to HK$13.89 in the four months through October. Buffett reportedly realized a $3.5 billion profit on a $500 million investment made in 2003. End of Story
 
NAV: 3.5827RMB
Earnings per share:$0.4146 (2007 1H)
==> Assuming 2007 earnings per share of 0.83RMB, PE is 50x

Crude at $100 won't help PetroChina as much since there is heavy tax from the government when crude price is very high.

Fueled by excess supply of money and limited supply of share (only a minor portion of all shares are in circulation).
 
Quote from day7793:

PETROCHINA is about to make a bull run from the flag its forming for a week or two. Nice solid sideways rest, for this great bull stock.

Watch out for the breakout exploding upwards. I am going to jump soon it does. Make some money laugh all the way to your brokerage account.
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AGREED. HIGHER WE GO.
 
Quote from scriabinop23:

To all the bubble deniers, 'PetroChina's market value is higher than Russia's gross domestic product' says wonders.
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That's not a very good comparison. The GDP of a country is the value added by all persons in that economy. The value added to the economy by PetroChina is equivalent to it's profit.

The profit of PetroChina is likely nowhere near the GDP of Russia.
 
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