Stock Tiger Stalking Stocks™

For Monday March 26, 2007  

You may subscribe to this newsletter free - subscribe

Close

Dow +19.87 at 12481.01, Nasdaq +4.44 at 2456.18, S&P +1.57 at 1436.11

Nice market rebound this week but before we get to that some words about our long term buy NUCON-RF NNRF. As the past week has been a strong one for the stock we wanted to say a bit more about the company.

We first started writing about the company after going to their office here is Moscow. We were more aggressive in our suggestion when the March 13 news came out and since then the stock has more than doubled on much higher volume. Almost all of our watch list stocks are break out or pullback plays where we really would like them to run up hard and fast so it feels funny to want the stock instead to pull back. On the technical side you can see it is totally above the top Bollinger band and momentum can keep a stock gong for a while but at some point when they run above and have RSI above 70 and stochastics above 80 then need to pull back or at the least consolidate long enough for the Bollinger bands to "catch up".  We hope this week to see consolidation and you see the chart shows the top B band at $1.31 so if it does pullback it would be a great spot.

We bought FRPT many times for shorter term plays in the last year. When FRPT was a penny stock I remember looking at their web site and seeing the vehicles they were putting armor on but did not do much investigation and it would have been a great one to hold long term. They were getting some government contracts at first to test and that should have been a big alert to pay attention. Note how FRPT also ran from 69 cents to $1.50 or so then pulled back and after a move to $2 consolidated for a few months. Would love to see the same with NNRF as that builds  a very strong stock chart. Yahoo shows that FRPT so far reported sales of only $169 million and on 67 million shares ran to $24. Similar situations seem to be the future for  NNRF.

Now a bit more extended overview of NNRF. This is on the Special Situations page also.

NUCON-RF is a U.S. corporation with a business model focused on the global marketplace.  The Company has executive offices in Washington, Berlin and Moscow.  NUCON-RF provides products and technical and engineering support for the nuclear power industry and is currently addressing environmental and power quality solutions for the governments of Germany, Russia, CIS and multilateral institutions, including the G-8 and the European Bank of Reconstruction and Development.  The Company has extensive in-house expertise in all aspects of radiological protection and radioactive waste management. The Company’s Chief Executive Officer formerly served as Russia's Deputy Nuclear Power Minister and its Chairman of the Board formerly served as Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co. The Company’s exceptional leadership has uniquely positioned it as a significant player in the provision of solutions to the Russian, CIS, European Union and Asian markets.

The Company has three separate and complementary profit centers:

ONE -  MANUFACTURING

Manufacturing of equipment for nuclear power plants. The Company recently completed the purchase of 50% of the St. Petersburg, Russia design and manufacturing company, ZAO ELECTRO MACHINERY BUILDING PLANT ATOLL (ATOLL).

ATOLL, with more than 200 employees, manufactures parts and equipment for nuclear power plants in Russia, China, Bulgaria and other nations.

ATOLL had 2006 revenue of $43,137,000 and is expected to realize revenue of $120 million and pre-tax profit of $22.2 million in fiscal 2007.

NUCON-RF owns 50% of ATOLL, the maximum permitted under Russian law. NUCON-RF's participation in ATOLL's profits shall be received in the form of quarterly cash dividends from ATOLL.

NUCON-RF is currently in negotiations on other possible key acquisitions.

TWO -  NUCLEAR REMEDIATION

NUCON-RF is involved in International nuclear decommissioning and remediation projects.

The following is a list of some of the key projects:

NUCON-RF and ATOMSTROYEXPORT (ASE) have an agreement whereby NUCON-RF will become the project partner and supplier to ASE of technologies and services in the Chernobyl Shelter Implementation Plan funded by the G-8 and the European Bank for Reconstruction and Development. NUCON-RF has an agreement with the Department of Nuclear Sites Decommissioning of the Federal Agency of Nuclear Energy of the Russian Federation to supply nuclear safety technologies, products and equipment for Russian and G-8 funded nuclear waste decontamination projects.

The most urgent decontamination project is Andreyeva Bay, Building No.5, a highly contaminated former radioactive waste storage site undergoing decommissioning.

The total project, which is estimated to last until 2012 and perhaps beyond, will cost $4 billion and $2 billion of this amount will be funded under a G-8 funded decommissioning plan. Approximately $438.5 million of the $2 billion in working contracts have been concluded to date.

NUCON-RF previously announced a letter of intent with the International Center of Environmental Security (ICES) of the Ministry of Nuclear Energy of Russia to supply nuclear safety technologies, products and equipment for a major international decommissioning project in Northwestern Russia.

THREE – PROPRIETARY TECHNOLOGIES 

NUCON-RF has several proprietary technologies that have positioned the Company for multiple international projects. 

NUCON-RF holds an exclusive license for NuCap™ in the Russian Federation and other CIS Countries. NuCap™ is a silicon-geopolymer material that stabilizes, encapsulates and stores nuclear waste for up to 170 years. It will be used on many of the cleanup sites. 

NUCON-RF also owns a proprietary, moldable, non-toxic polymer-based nuclear energy shielding material known as FEECOM/BIECOM. FEECOM/BIECOM can be utilized in lieu of lead shielding. In the European Union, the use of lead will be banned as of 2010 for use in nuclear energy projects. NUCON-RF is in negotiations to establish its own European manufacturing facility for FEECOM/BIECOM as it anticipates strong demand for this product. 

NUCON-RF has a license for distribution in the Russian Federation for equipment that eliminates the power surges and high frequency noise adversely affecting industrial, commercial and residential facilities, thereby preventing serious damage to sensitive digital equipment housed in such facilities. The equipment is manufactured by Nevada-based Environmental Potentials (EP). NUCON-RF has received an exclusive mandate to market this equipment in the Republic of Tatarstan and the total revenue to NUCON-RF in one of the first projects there for Sun City could approach $50 to $100 million. NUCON-RF is further endeavoring to obtain government mandates and sales/installation partnerships within other Russian Republics. These agreements may also produce substantial company revenue. 
 

NUCON-RF has formed a wholly-owned Russia-based subsidiary, NUCON-RUS, a company focused on the marketing, sales and installation of the foregoing technologies.

We will write more as time passes as we expect this to be an exception stock and one o can hold long term to qualify for long term capital gains ans save a lot on taxes.

On another note: