Rodman & Renshaw has downgraded China North East Petroleum Holdings (Amex:NEP) from "Market Outperform" to "Market Perform."
The Oil producer and oilfield services company just came off a strong quarter, generating revenue of $27.7 million, an increase of 144 percent over the same quarter last year.
Gross profit rose to $16.9 million, or 60.9% of revenue, from $7.4 million last year.
The problem is they didn't drill any new wells in the quarter, shown in its drop in production to 198,776 barrels, an 11 percent drop.
That will carry forward into the near future, as prices carried the prior quarter, and it doesn't look like they'll be able to repeat that performance going forward.
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