NNRF Inc (NNRI)

[stocktiger]

Abount exits - No exits now...

On exit strategies…

You may know from my public charts page at stockcharts (the most widely read of them all) that in playing break out stocks I have a policy as benzdealer wrote of to exit a portion of the stock pretty quickly to lock in gains then set a stop loss. This often limits upside potential but it makes up for it in never letting a winning trade turn into a losing one. This is great for many stocks but not all.
In the case of NUCON-RF there should be a stop for situational changes but for profit taking in my opinion a few things first have to take place to see how the stock performs after those events happen. To sell any before those events only lowers your upside potential profit and I am adding as it goes up not selling. It is called averaging up and it can be used when a stock continues to go up and new events take place.

Here are a couple of things that have to happen first before I will think of selling any stock.
One event will be the opening of a European plant for the production of the radiation shielding material FEECOM/BIECOM. When the plant is open I want to see the size of the orders. As this may become a major profit stream there is no way I would sell any shares until after I see the size of the first few orders. The use of lead in the EU will be banned in 2010 and at the moment there is no other company that has a replacement so I do not want to decrease the number of shares owned but increase them.
Another event(s) I want to see is the first awards for contracts from any combination of the G-8, Russian Government and the European Bank of Reconstruction and Development. I think the first will be for the Andreyeva Bay project but there are several others. The total money set aside so far is at least $4 billion – with a B – and to sell even a few shares in my opinion before we see some of those contracts is only limiting prospective profits.
The third thing I want to see in how the Russian government’s formation of ATOMPROM plays out later in the year. Some of you may be aware of GAZPROM. It was formed by the Russian government of natural gas and oil companies, and is closes to becoming the world largest company. I read that is market value is now about $248 billion. They think they will become the world’s largest company in not many years and reach a market cap of $1 trillion within 10 years.
They have no connection with ATOMOROM but to point out the way the Russian government has done when it has an ambitious goal. With ATOMORM being formed by buying up the controlling interest of commercial nuclear related companies they plan on being a powerhouse in the world and to give the French nuclear company AREVA and Japanese Westinghouse Toshiba and all others big competition. ATOMPROM has several divisions like Fuel, Export, Design and Construction and they are being very aggressive. They recently have made many acquisitions. Their division Atomenergomash as an example only a week ago announced the joint-venture with Frances’s Alstrom. This as I say is to point out that this is big-boy league and not to think of it as a trade.
Yes NUCON-RF is relatively small at the moment but this is the ground floor. They have made some acquisitions this year, the type that ATOMPROM may have been interested in and have an amazing leadership team. How else do you think that this US company can be the only one to enter the Nuclear market in Russia. The CEO Prof. Valery Lebedev, PhD Russia's former Deputy Nuclear Power Minister – you can get only one level higher than that folks. Chairman of the Board is Larry McQuade, JD. And he was formerly Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co. and a great choice for international leadership. A big thing not to overlook is that Professor Valery Zubov, Ph.D was appointed to the Board of Advisors - Mr. Zubov is recognized as among the most influential figures in the Russian Parliament's financial sector. A top ranking Deputy of the Duma. Wake up if anyone is sleeping! This is not a small time company only a tiny stock price at the moment.
With the renaissance of not only nuclear power but in the responsible remediation of hazardous sites gaining much strength around the word I think it is penny wise and pound foolish to treat this stock as a trade and to sell any at these low levels.
When we see ATOMPROM on a major exchange and have seen the other two things I mentioned - FEECOM/BIECOM plant opening and the first few sales plus the first few contracts given by G-8 for cleanup projects then we can again review the stock price but right now the investing world has yet to know of this company.
A listing on the Russian market would help and one in London or other world markets also. Of course a move to AMEX or Nasdaq will take place and that also will help spread the word about the company
So these are a few of the things to watch for and until we see the results of all of them it is totally premature to even talks of exit points. – well if ATOMPROM offered $30 or so you may take some off the table….but that can be a later discussion.
You can always call me as even though I live in Moscow I have a USA number that rings here. My number is on my site which I am not allowed to mention says iHub.
Our time is 8 hours ahead of NYC.
I think it is this week that there will be a London meeting about the Andreyeva Bay part of the clean up a. Not sure that we will hear soon about it but there may be some news this week.
With only counting the contracts from ATOLL and the two recent acquisitions in the works, if NUCON does triple the production at those two new plant as it says then the current profits may be about $15.4 million as those contracts complete. This is only a back of the napkin calculation but with about 35 million shares outstanding that would be $0.44 and at a PE of 20 = $8.80 today and PE 25 = $11. This may not count all expenses but also does not count any additions to contracts at ATOLL.
You can check my math but even without counting any remediation projects or power filters or FEECOM/BIECOM I think the stock could double or triple.