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NF Energy (OTC BB: NFEC):
A Monster Win Gets Even Bigger |
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Once again, NF Energy is the
big news maker. Lots of coveage on this idea. Making a lot of money never
gets old, and this stock has been very good to us.
I started with this one in June at
a reverse split adjusted level of $2.07. Yesterday's close
of $5.50 puts us up 166% in less than three months.
Now, it would appear as if the fun is really going to start.
Today, an hour before the market
opened, NF Energy announced it has signed an energy management
contract valued at $43.9 million. Can you spell jaw dropping
event? Yes- it's not a misprint. A company going to do about $20 million
this
year just signed a $44 million contract.
Just to expand on this- if you read
the release, you will note the contract extends over 15 years. NFEC
has revamped the energy profile of a huge hospital complex, and is going
to manage their energy needs for the next 15 years.
This equates to an additional $3
million in annual revenues- or about 15% annually more than they
are delivering now. More importantly, this is the kind of release analysts
and fund managers love. Since these are recurring revenues for the next
15 years, their revenues and cash flows become more predictable and consistent.
The headline number alone will no
doubt send the stock flying up the charts. After all, since the 3 for 1
reverse split, there are far fewer shares in the supply. If there's demand,
there won't be much supply.
To put a pencil to what this means
to the profit picture, I would estimate about $.06 in additional
EPS
every
year for the next 15. That's between $.60 and $1.00 in additional
value per share, which would put the stock around $6.50 on this news.
The market might perceive recurring
revenues should have more value, in which case it would trend even higher.
Here's the chart post last week's
reverse. As I have written- it is evident this company is positioning to
move off the Bulletin Board and on to a more senior exchange- no doubt
NASDAQ
or AMEX. I don't know if or when this will happen, but I can say UTA
is the template, and it took about 2 months after the reverse split. Once
the reverse split and the upgraded listing were achieved,
UTA made
455%
move.
This stock will now likely find its
way to $10.
Here's the news. Off we go.
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NF Energy Saving Corporation
Announces $43.9 Million Energy Management Contract
Recurring Revenue
Contract Extends over 15 Years
SHENYANG, China, Sept.
1 /PRNewswire-Asia/ -- NF Energy Saving Corporation (OTC Bulletin Board:
NFEC; "NF Energy"), a Chinese leader in energy efficient flow control systems,
announced the Company executed a 15 year, U.S. $43.9 million Energy Management
Contract (EMC) with a large hospital in Shenyang.
Currently, the hospital
has an annual energy consumption expense of RMB30 million (US$4.39 million).
NF Energy will provide management and technological expertise in the reconstruction
of the hospital's lighting, elevator, air-conditioning, boiler, and hot
water systems. The energy audit has been completed and reconstruction has
begun.
"We are very pleased
to be able to assist with the modernization of such an important, large
public institution. This multi-year project will allow us to recognize
a meaningful revenue stream for the coming years. The NF Energy management
team is working towards other long-term recurring revenue contracts to
enhance our current project-oriented business model," commented Mr. Gang
Li, Chairman and CEO of NF Energy.
About NF Energy Saving
Corporation
Website: http://www.nfenergy.com
NF Energy Saving Corporation
(OTCBB: NFEC - News) is a China-based provider of integrated energy conservation
solutions utilizing energy-saving equipment, technical services and energy
management re-engineering project operations to provide energy saving services
to clients. Headquartered in Shenyang city of China, the Company currently
has 220 employees and several proprietary energy saving technologies and
patents.
Safe Harbor Statement
This press release contains
certain statements that may include "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are often identified by the use of forward-looking terminology
such as "believes, expects, anticipate, optimistic, intend, will" or similar
expressions. Such forward-looking statements involve known and unknown
risks and uncertainties that may cause actual results to be materially
different from those described herein as anticipated, believed, estimated
or expected. Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company's actual results could differ materially from those anticipated
in these forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that are filed
with and available from the Securities and Exchange Commission. All forward-looking
statements attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by these factors. Other than
as required under the securities laws, the Company does not assume a duty
to update these forward-looking statements.
For
more information, please contact:
American
Capital Ventures
Howard Gostfrand
Tel: +1-305-918-7000
Email: info@amcapventures.com
Web: http://www.amcapventures.com
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