NEW YORK ( TheStreet) -- Shares of China North East Petroleum Holdings (AMEX: NEP) were gapping down Wednesday morning with an open price 17.2% lower than Tuesday's closing price. The stock closed at $3.83 Tuesday and opened today's trading at $3.17.

The average volume for China North East has been 417,500 shares per day over the past 30 days. China North East has a market cap of $120.5 million and is part of the basic materials sector and energy industry. Shares are down 33.5% year to date as of the close of trading on Tuesday.

China North East Petroleum Holdings Limited engages in the exploration and production of crude oil in northern China. As of December 31, 2010, it operated 295 producing wells with proven reserves of 5,476,200 barrels of crude oil at Qian'an 112, Hetingbao 301, Daan 34, and Gudian 31 oilfields. The company has a P/E ratio of 2.2, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 16.6.

TheStreet Ratings rates China North East as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. You can view the full China North East Ratings Report.

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