NNRF Inc (NNRI)

[stocktiger]

Words about the short attack - was in today's newsletter

NNRF is now under a very heavy short attack. Not simple normal short selling that is a good part of the market but an all out attack planed by a group to try and force the stock price down using brute force and naked short selling so they can sell more shares than actually exist. It is criminal but there seems now the only way to fight back is to buy back.

http://shortsqueeze.com/term/nnrf-stockshortinterestsellingpositions-nuconrfinc.php

This site shows the reported short count at the end of June of 381,000 shares. This of course does not show naked shorts as they were illegally recorded only as sales. The true short position now must be well over 1 million shares, maybe two as we can suppose from the volume this week alone. This gives us a strong idea that there are many more shares in trading than actually exist. If every stockholder were, as an example, to ask their broker to send them the certificate of their shares, as there are only about 4 million real shares in the float, we would be assured that no one could short against real stock and only illegal short sellers could do so. They likely are using Canadian or other off shore brokers, and they would be able to continue to short only naked and it would be very clear. The price of a stock is based on supply and demand so if there is more demand the price rises if supply is the same. A naked short seller is selling stock that does not really exist but it goes into the system just the same so artificially creates more supply so the price drops as the supply now outnumbers the demand. We know there are only the 4 Million real shares but if the crooked short seller makes 1.5 million naked short sales there are now 5.5 million shares in the system. Like in musical chairs, the music will stop and all will scramble for the real number of seats (shares) and this a a real short squeeze.





http://www.buyins.net/tools/short_list.php?dys=%3E12 This site shows a list of stocks that have been on the Naked Short SHO list. You see that NNRF has been on it for 41 days. Market makers are allowed 5 to perhaps 13 days to deliver the stock and over that it is not legal so the market makers are selling stock that does not exist in hopes of buying back some in the future if they could panic any real shareholders to sell it to them. The SEC could on the other hand enforce the rule and simply pull the licenses of market makers or broker who are breaking the law but as you see they do not. There are a lot of articles about this such as http://www.ncans.net/manipulation1.htm The buyin.net site lists NNRF in the category Buy In Eminent. - meaning at any time a short squeeze may start.



We know that NNRF has about $200 million in backlog orders at ATOLL and have a bid in for a very likely $100M for the same buyer. In the last quarter ATOLL had a net on revnues or of 26%. On $300M that would be $78 million. As NNRF received 50% - $39 M would go to them or about $1.00 EPS - however we know that these contracts are not all for this year but we also know that there are of course many more contracts expected as they just announced a major Joint Venture this week. If only half came to NNRF of that or $39M - that is still $0.50 EPS (not including any remediation income that the company said would start in the fourth quarter, or any FEECOM/BIECOM which we believe will be huge, any of the major G-8 contracts or nuclear waste storage etc.) This is all to say that the real stock price is terribly undervalued (under priced) in my opinion and when we can squeeze the naked shorts out the stock will return to its excellent growth. We of course hope the regulators will step in but they have a poor track record. Last month the SEC Chairman Christopher Cox called naked short selling “a fraud that the commission is bound to prevent and to punish.” Well here is a chance for them to step up and and do what they say they should. It is hard for some funds to buy a pink sheet stock and some that can have a problem under $5.00 as it is in their rules. We were there only 7 days ago and I think when the stock gets there again there will be even greater upside volume than before.

It seems the shorts are betting they can pull off this crime and cover using what they think are warrants and/or convertibles that could come due but they are wrong as none will be coming this year that could be sold. They may also have figured that they could use the about 1.25 million 144 shares that they heard may be registered. These shares however were never registered so will not and cannot be sold. As the stock now is at the 200-day EMA near $3 and one of our typical buy points, we retail buyers may be enough to spark others to move back into the stock and start the short sellers to cover. Obviously if everyone here bought 2,000 shares the stock would be back to or over $10 but that is a short term situation as support comes from strong shareholders who keep buying any dips. I do not think it will not be too long until it moves to major exchanges and that will open the door to many more funds who now cannot buy because of being on the pink sheets. When listed on the London exchange I think the buying will be sustained as the Europeans have much greater interest in Nuclear plant building and especially nuclear waste clean up and of course nuclear shielding as that is the law in 2010. Also we expect listing on the Russian exchange later. Those situations are not far away but today we do have this short attack going on. It is vicious and these criminals care for nothing but money even though their actions are illegal. We hope that all see what we do and support the 200-day EMA to reverse the direction as the indicators predict will happen soon. The company work continues regardless of the current share price and they are building much shareholder value that will be more evident as the time passes.


Let me mention the two significant news items this week.

The first on Monday was about a dividend to NNRF shareholders as of July 1. NNRF is acquiring ROAR and following the acquisition, ROAR will be divided into two companies: a welding production company that will be known as "ROAR', and a fuel cell production company that will be known as "H-XCELL'. The proprietary hydrogen fuel cell technology and patents currently held by ROAR will be transferred to H-XCELL at the closing. NNRF will issue its 50% ownership in H-XCELL as a dividend to NNRF stockholders of record as of July 1, 2007. This dividend will occur in the second half of 2007 NUCON-RF, Inc. Announces Stock Dividend to Shareholders of Record http://biz.yahoo.com/pz/070709/122547.html

I was at the ROAR offices last Monday and you can read about this on the message board. The picture on the left is the smallest model of their unit for welding and cutting and brazing. In this picture you see a small welding head but you can use of course the full sized ones used in all aspects of welding and cutting. This replaces the need for those large tanks of acetylene and oxygen. With this technology you take off the green cap on top and fill it with water, plug it in and it makes the fuel as you need it so when you turn it of there is no danger as there is no gas and the waste is only water. You may have seen some units on the Internet before but this is not an experimental model. ROAR has about 33% of the Russian and CIS market for torch heads and equipment so their units therefore are produced for the serious manufacturer, shops and anyone now using acetylene or other fuels. Countries such as Turkey as example who have to import all fuel has standing orders once certification for that country is finished and production is ramped up. In Russia and the CIS there are 600,000 users of acetylene/ oxygen so only converting 10% over is a ton of units and that is not courting other parts of Europe or Asia.


ROAR has also developed working prototypes for heating and air conditioning units and has coupled multiple units in series to demonstrate the proof of concept of their units to power a mid-sized vehicle. NNRF has commenced working with laboratories in Russia and Israel, universities, and industry partners to develop multiple applications of the units manufactured by ROAR.

The Second was huge news

NUCON-RF, Inc. Announces Formation of Joint Venture With Russian State Company http://biz.yahoo.com/pz/070710/122648.html

You can read the message board where I wrote more on it but as you know the Russian government has formed what will become a massive nuclear holding company ATOMPROM. NNRF already had strategic relations with two of the top four pillars of ATOMPROM. Rosenergoatom (ROSATOM) who operates all Russian nuclear plants and Atopmstroyexport the exportation arm of nuclear equipment and technology. In the announcement TVEL (the nuclear fuel company with 40,000 employees) and Atomenergomash (machinery building component of ATOMPROM) are identified as two of the four main components of the newly formed Russian state nuclear energy company ATOMENERGOPROM (ATOMPROM) ..."

This means now that NNRF and therefore ATOLL have agreements with all four of the main components of ATOMPROM. This is really very big news. Nucon has the highest ranking company leaders and is totally aligned with the top nuclear enterprise in Russian. ATOMPROM is to become a world leader in nuclear in the way GAZPROM has become so in the natural gas field. (I believe GAZPROM is now the second largest market cap company) and ATOMPROM is modeled after it.

Remember who is in this company:

Chairman of the Board: Larry McQuade, JD. Formerly Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co.

CEO: Prof. Valery Lebedev, PhD, Russia's former Deputy Nuclear Power Minister

Victor D. Akhunov, former department head of the Department for Decommissioning of Nuclear and Radiation Hazardous Facilities of the Federal Agency for Atomic Energy of the Russian Federation. As was written in a former press release: "Mr. Akhunov is recognized as the most knowledgeable and experienced expert on current and future decommissioning projects in the Russian Federation by the European Union and the European Bank of Reconstruction and Development and the donor countries of the G-8. Mr. Akhunov has been involved since inception in the planning and execution of the projects located at Andreyeva Bay, Sayda Bay, Gremikha Bay, the nuclear storage vessel LEPSE in Murmansk harbor, and the decommissioning projects in the Far East at Valadivostock.

And Advisor to the company: Professor Valery Zubov, Ph.D., Member of the Russian Federal Parliament Committee on Credit Organizations and Financial Markets

You know that the G-8 countries have pledged so far to fund at least $4 billion for the remediation of 3 nuclear contamination sites in Russia. You can Google each of these and learn much about them: Andreyeva Bay, Sayda Bay, and Gremihka Bay.





The G-8 in another extended project pledged $20 billion forDecommissioning Nuclear and Chemical Weapons http://www.defencetalk.com/news/publish/wmd/G8_Decommissioning_Nuclear_and_Chemical_Weapons170011622.... NNRF is not as much involved in weapon decommissioning directly but but all nuclear waste has to be stored for a very long time and NNRF is involved there.

You know a general review of Nucon was done by OTC Stock Review and is available in a PDF file here: OTC Stock Review on NNRF http://www.otcstockreview.com/Files/NNRF/nnrf_review.pdf

As you see on the chart below, the stock price it is now very near the 200-day EMA one of our usual buy points and RSI is under 30 while stochastics are under 20. As RSI moves back over 30 and stochastics moves back over 20 our buy signal will be confirmed. As always you set stops with any stock at a level you are comfortable with but good risk reward as we know is either buying as near as support as possible or in buying as close to a break out as possible. I know some. like me, bought near the 50-day EMA and it did not hold so some had close stops and were stopped out. I held - as frankly I did not want to add to the sell off and figure it will not be long until it is back over my buy price anyway.

This is like a war with the bad guys, the illegal naked short sellers who want the stock as low as they can and the longs who legally are buying real shares. Speculation that Warren Buffett may be interested in HOV started a short squeeze in that stock on Friday. He may not yet be talking NNRF yet but we think it is time to teach the shorts a lesson for NNRF and start our own short squeeze. I am not a broker and can give no advice so do your own due diligence. Can you imagine if the first 1,000 people reading this were determined to end this criminal short selling attack and bought 1,000 shares each day next week. That would be 1 million a day and that would go a long way in braking this attack. Of course it could take a couple of weeks but continued support would break them over time. The higher the price goes, as long as it is within reason and does not get out of hand, not only is good for the shareholders short term but long term as well. The company has made 2 acquisitions and has two more in the works now and we think there will be more. A higher share price means the company can use less shares to acquire more solid companies to add to their abilities to fulfill needs in their area of expertise. I cannot know but would hope and actually expect that NNRF would continue to reward shareholders with dividends such as they will be doing with the ROAR acquisition in further acquisitions as well. To find over time to be a shareholder in many companies as a gift from NNRF would be great. So here is the chart and I for one will be buying as I want to support the stock and fight the shorts as the government is doing nothing so far about it. You can watch the stochastics and RSI for further confirmation of a upturn. I expect now more funds will be buying this time when it moves back over $5 as many have called with the news this week about the Joint Venture. You know my phone number is on the story stock page if you have questions. I am in Moscow but that is a USA number that connects here and we are 8 hours ahead of NYC. I want to show these shorts the support of this company and its future and take them out of the equation completely. (the normal everyday shorters are fine as they help supply liquidity) but these bandits who are trying to kill this stock price with naked shorting are felons - they really are. We want a strong company for many years to come not for only this month or year. Hope we can show them what we are made of.


Now at the 200-day EMA support. RSI and stochastics will move up to confirm reversal and time to get on board.