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A $5.2 Million Ka'ching for
NF Energy (OTC BB: NFES): A Hot China Penny Stock |
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Dirty coal fired power plants- the
shame of China. The Chinese economy experienced double digit annual growth
for 20 consecutive years. In order to provide fuel for all that growth
they built a lot of cheap, hastily constructed, and inefficient power generating
facilities. They all burn coal, and they're all filthy.
The Chinese government is moving
very rapidly to mitigate and eventually eradicate this problem. They're
doing it by closing the old, inefficient coal burning plants, and building
new, highly efficient power generation facilities.
Today, after the market closed, NF
Energy (NFES) announced it has been awarded a $5.2 million contract
to provide energy efficient flow control systems two new Chinese power
plants.
According to the press release, the
Guangdong Huizhou Pinghai Power Plant and Guangdong Yuedian Huilai Power
Plant are China's new Ultra-Supercritical coal power plants. They are being
built to replace small, dirty and inefficient coal power plants that dot
the landscape as vestiges of the 20 years of rapid and uncontrolled growth.
The revenues will be booked in Q3
and Q4. To put the scope of this in perspective, it represents about 1/3
of the total revenues in 2008, and 25% of the expected revenue stream in
'09. In short, for NFES, it's a big deal.
Coming off a year wherein NFES
delivered $4.3 million in profits on $14 million in
revenues ($.10 EPS), $20 million and well in excess of $5
million in profits looks like it will be a reality in CY '09.
Technically, the stock is holding
its own on lighter volume. It's summer, and everything is coming down volume
wise, as is the nature of microcaps in the summer.
I think the chart looks pretty darn
good when one considers how far the stock has come. This low volume sideways
extension on the chart is going to be resolved with either a big move up
or a slow drifting down.
If the company continues to get the
kind of momentum that leads to contracts valued at $5.2 million, one would
think the chart has to resolve to the upside.
On a valuation basis, coupling last
year's growth rate with earnings, we should have a stock trading at about
$1.50
right now ($.10 in EPS last year), looking for $2.50 as the
second half of the year unfolds.
Here's today's news:
| July 14, 2009
NF Energy Saving Corporation
Announces $5.21 Million Order For Energy-Efficient Flow Control Systems
Proprietary Systems
to Be Used at Guangdong Huizhou Pinghai Power Plant and Guangdong Yuedian
Huilai Power Plant
Scheduled Delivery
in Q3 and Q4 2009
Total contract value
amounts to US$5.21million in revenue to be recognized in Q3 and Q4 2009.
Per US GAAP would
be roughly US$4.45 million
SHENYANG, China, July
14 /PRNewswire-Asia/ -- NF Energy Saving Corporation (OTC Bulletin Board:
NFES; "NF Energy"), a Chinese leader in energy efficient flow control systems,
today announced the $5.21 million of energy-efficient flow control systems
for Guangdong Huizhou Pinghai Power Plant and Guangdong Yuedian Huilai
Power Plant to be delivered in Q3 and Q4 2009.
Both Guangdong Huizhou
Pinghai Power Plant and Guangdong Yuedian Huilai Power Plant are China's
new Ultra-Supercritical coal power plants being built to replace small,
dirty and inefficient coal power plants with design capacity of 2 x 1000MW
of generation capacity respectively. These two power plants will largely
improve the electricity supply in Pearl River Delta Area. Guangdong Huizhou
Pinghai Power Plant is an important project of China’s “11 Five Year Plan”.
"We are proud to supply
flow control systems to these important projects," commented Mr. Li Gang,
Chairman and CEO of NF Energy. "Our high quality products are being well
received in the advanced USC systems market."
About NF Energy Saving
Corporation
Website: http://www.nfenergy.com
NF Energy Saving Corporation
(OTCBB:NFES - 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:
Marcus Robins
Catalyst Communications
(503) 241-1880
marc@catalystresearch.com
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Do You Twitter? |
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About a year ago I asked my techies
if there was any way we could get ideas to investors with text messaging
to cell phones. I was prepared to spend some money as I saw this as the
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The folks at TWITTER did it
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(free), and become a follower of the OTC Journal. I'll use it for
quick updates and coming events.
Just go to www.twitter.com,
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and click on the "Follow" button on the Twitter box. Or,
go directly to http://twitter.com/otcjournal.
Sign up today, join as a follower,
and I'll start using it to everyone's benefit. Tell your friends to sign
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