NNRF Inc (NNRI)

[stocktiger]

About a reason for increase in stock price.

"..... how the stock will move higher."

In the latest press release the margins on revenues were about 26%. That is no guarantee that they will continue at that level as they could be higher or lower but we can use it as an example.

This last quarter was the slowest and right now the order book is at $183 million (probably more as they do not announce every small order) and they said they submitted a tender for a contract worth about $100 million. If they get it as chances they will, the order book will be at least at $283 million.

We do not know the delivery dates of the orders but we are also only 6 months into the year so more will come. Let’s just say that it is pretty good to figure that at some time in a one year period that they will deliver $283 million - if the margins stay at least at 26% that is $73 million and NNRF gets 50% or $36 million - roughly $1 a share so for a stock price on booked orders now (183x26%/2=$23 million or about $0.63) a share and including the expected order to be awarded this quarter would be about $1 EPS possible. So a 20 PE would be share price of $20 in this example.

However this does not include any decontamination awards and the G-8 and EBRD have pledged at least $4 billion for the 3 or so man projects over several years. We do not know how much of this will go to NNRF but we know the likely most knowledgeable person on the planet regarding these three projects is now in charge of this with NNRF. In any case it seems likely that NNRF will receive substantial awards.

The example EPS also does not include any money from FEECOM-BIECOM and as it is now the only alternative to the use of lead for shielding and since lead use will be banned in the EU by 2010 --- well you see the revenues will likely be very substantial.

This EPS from existing and possible soon to be contracts, also does not include the revenues from the new acquisition candidates or the two newer technologies related in the recent press releases.

This is not very detailed but even with no remediation and no FEECOM-BIECOM and no new acquisitions we can see that the a share price 4 times higher than today's is certainly very much in line with normal PE ratios.
Right now the stock is being traded mostly by people with small scale thinking who think a 50 cent or $1 move is something to cry or cheer about. They miss the real potential of the company and the stock.

Look at VIP, MBT, ROS, GLDN and WBD and all of these Russian players are over $50. Is there something to assume that NNRF will not in time do at least as well as those? I think it will do at least as well.

We are early in the situation as a move to the AMEX or Nasdaq awaits and perhaps listings on Russian exchange, London, Dubai etc. ATOMPROM is still in formation and that is going to be huge IMO.

I would sure not have invested so much money in this company or spent time investigating and sharing with others if I thought it would only go to $20 or $25.

Do the math on sales and margins and then think about the FEECOM-BIECOM and the Remediation and the sales to Europe. Asia etc and the new acquisitions and their amazing technologies. Is it such a stretch to see that they may at least double or triple the revenues outlined here? What would a stock price be on $? eps - someone can start to do the calculations and you will see that we are now at a ridiculously low price do to the fact that the large investing community does not yet know of this company or are not really paying attention to the high level activity going on and who is running the company.

The number of nuclear plants in Russia alone are planned to double –what about long term storage of radioactive materials – who has the facilities and knowledge – NNRF and we have yet to even talk of this as a revenue stream.

So far the potential is only being hinted at and you will see that growth unfold.

Look at the VIP chart. They provide mobile phone service and are amoung about 5 other companies. Look at the chart http://tinyurl.com/yog4t8

It had gone from $4 to $42 and in 2005 the figures showed that basically every person in Russia already had a cell phone so some thought the stock had peaked and it lost about half its value but it was a game as the real investors saw the potential in added services and the stock has moved to $100.

Do you think that investors will be less keen to enter the nuclear market that is likely to become one of the largest growth sectors over the next 20 years? I have stated that I believe a good investment here may be life style changing as I firmly believe that the growth potential is solid and the stock appreciation may then be so substantial.

Can you name one other pure play nuclear company other than huge conglomerates like Toshiba , Siemens etc? – or can you name any in Russia – one of the most active nuclear markets in the word? This is the stock to own and one that will not only help your portfolio but help correct the world contamination problems from the past generation.

At the moment technically the stock is at the 50-day EMA support area after a high volume move up and a low volume pullback and a perfect 3-day pullback time to buy. The company is scheduling a Mid East road show as you know for this month and I think the excitement that will create to be substantial. You have to remember that people in countries in Europe and the East are much more interested in nuclear that many in the USA. I understand that a lot of stock buyers like to buy stock as they break out as I have a web site about this but for long term holdings you make more money to buy on pullbacks when people are selling than paying higher price when everyone wants to get in.

Enough said today – I am extremely confident of this investment. Remember the importance of politics when working on government contracts and that includes the G-8 countries. Do a Google on the key people in the company. Tie those together and I think you will want to own the stock.