Sunday, July 19, 2009

New LONG-TERM Trading Idea


Today, we have a SPECIAL LONG-TERM IDEA for you!

NF Energy Saving - Trading Symbol: NFES

With the growth in energy demand driving global efficiency, our latest stock idea ---NF Energy Saving (NFES) is uniquely positioned to benefit from recent mandates by the Chinese government for "energy productivity" as a primary goal of all companies and municipalities, cleaner energy and a 20% boost in the efficiency of energy consumed.

This latest idea is not a stock we expect to yield our members a 100% overnight, but the near to longer term outlook for this stock is phenomenal.

We think the price it is trading at right now makes it an incredible opportunity. Once you get to know about this company and realize the amazing fundamentals here we're sure that you too will think it is a steal right now.

The Company specializes in helping municipalities and established industrial companies USE ENERGY MORE EFFICIENTLY and accomplishes this by:

  • Producing, selling, and servicing superior flow control equipment for the gas, oil, power production and water industries
  • Retrofitting and improving energy production equipment such as coal boilers and certain motors, which it does for companies operating in a broad group of energy-intensive industries
  • Providing consulting "project" services to help municipalities and large organizations assess their energy usage and opportunities for more efficient use.

While keeping a close eye on this stock, StockPreacher members should keep in mind NFES's:

  • Consistent Growth and Profitability - NFES grew revenue by 53% in 2008 to $15.8 million and generated a 23% net Income margin of $3.7 million
  • Extensive Contract Pipeline - The Company has signed 47 contracts totaling $35.9 million, $21.5 million of which is expected to be completed in 2009
  • Well Established Market Position - NFES successfully deployed a large number of energy efficient flow control systems across numerous industries and is well recognized throughout China as a leader in its industry
  • Leading Proprietary Flow Control Systems - The Company owns a strong patent portfolio, enabling highly energy-efficient, large-dimension pipeline flow control systems.
  • Tightened Chinese Environmental Policies - Future demand will be accelerated by Higher domestic energy-saving standard.
  • Preferential Government Subsidies - 5% of China's RMB4 trillion economic stimulus package are earmarked for environmental projects
  • Investments in Wind Equipment Manufacturing - New wind power manufacturing production facilities to come online in Q4 2009 to meet the demands of China's rapidly growing domestic wind market

And just a couple of days ago, NFES just announced a $5.21 million order for energy-efficient flow control systems. These proprietary systems are to be used at Guandong Huizhou Pinghai Power Plant and Huangdong Yuedian Huilai Power Plant and scheduled for delivery in Q3 and Q4 of 2009.

Per U.S. GAAP, this amounts to U.S. $4.45 million!

Mr. Li Gang, Chairman and CEO of NF Energy commented, "We are proud to supply flow control systems to these important projects. Our high quality products are being well received in the advanced USC systems market." Check out the full article by Clicking Here

Now take a look at the chart from StockTA.com where we want you to pay special attention to a few different things!

1) Bullish on the long-term trend
2) EMA has VERY BULLISH indicators on all 3 terms (Short, Intermediate, and Long)
3) There was a "hammer" candle suggesting a low was being "hammered out."
4) A Bullish breakaway gap suggesting strong underlying strength occurred a on July 15th.

FYI - The EMA and Trend indicators are located to the left of the chart in "Chart Indicators", and the "Support/Resistance" is directly above that!

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