Cnooc (CEO) – Analysis 2015-01-29

Cnooc LTD (CEO) has been compounding its wealth at an unbelievable rate of 19,56% per year the last 10 years. Including last years dividend it is 24,45% as a total yearly return.

What is such a business worth?
It depends on your required yearly return. I require 10% in my calculation.
With that in mind its value could easily double considering you currently can buy a piece of this business at a 5% premium compared to the actual tangible book value per share.

Why is the market not liking the business?
I would say it is mainly connected to the low oil price at the moment.
As far as I can see though the company keeps compounding its money at a decent rate.
Interim report 2014 showed a 7,28% increase of shareholders' equity compared to end of 2013.

Disclosure: The author had a long position when this post/analysis was written.

CEO-2015-01-29CEO 2015-01-29

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Are you human? * Time limit is exhausted. Please reload CAPTCHA.