NNRF Inc (NNRI)

[stocktiger]

Technical update

I wanted to point out a technical situation on the NNRF chart that may be pointing to another fantastic move up.

As you know NNRF from mid April has had many short sellers in the stock due to its rapid 2,000% gain in March. It has in the last couple of months (58 days today) been on the SHO list This means that there are sellers of the stock who have not given the stock certificates as required of course by law. This is why they are called naked shorts as they have no stock actually to sell so their order is executed, often times off shore, but they fail to deliver the stock certificates using various means of excuses to drag out the process. As a result NNRF has a very large number of shares that are short and at some point they will need to cover - buy back the stock. I cannot say for sure when that will happened but it looks like some did that a few weeks ago as the stock made its low at $1.80. So instead of trying to predict the actual "short squeeze" point let's take a look at the current chart.

In mid July on day the stock hit a low of $1.80 and rallied nicely on good volume to over $2.80 then spend 3 days in a low volume pullback in a little bull flag as shown at the blue arrow. It then broke out and ran two days on strong volume. It then pulled back into another bull flag for 7 days and yesterday broke out of this. It closed a penny over the 200-day EMA and any further advance may start it running again and bring in stronger volume. The chart shows the 50-day first resistance at $3.94 then the $4.22 62% Fibonacci retracement and finally the yellow trend line at $5.00.

I know many bought at the buy signal when the stochastics ran back above the 20 line and RSI over 30 and it looks like this may be another buying opportunity as it is clear where you could set stops if you are a short term trader.

If this does start to move this week and next then it could pick up steam as shorts may continue to cover. By the way, if you are longer term and you do not want your shares to be available for short traders to borrow you can ask you broker to send you the certificates as if you have then no one can borrow them to use to short sell. This would help the stock price price.





This is a 15-min chart and first note the full flag from July 19 to the break out on July 25. From the break out it ran from about $2.20 to $3.89 and now note the similar situation today. We had a 9 day bull flag and yesterday a clear break out of the trading channel on increased volume.

The stock on the 15-min chart became a bit overbought and was above the top Bollinger band a while but pulled back a bit. Note that the center Bollinger band is at $2.85 so even a pullback there would test the trend line and center band. Very often this type of pattern break out can quite quickly go to test the recent highs of the pattern as it did in late July. Then the break out would be the former top as shown here at $3.89.

I cannot say if this will be the final end of the short selling at this level but the chart is very encouraging and it is a clear low risk pattern as support (and therefore short term stops) are clear. We know that many fundamental things are happening within the company that are very positive and stocks most often move in front of the actual events.

I just thought this fractal pattern was worth special attention as the last time this pattern showed it was huge move in the stock price. Adding from $2.85 to $3.10 area will be more than a triple by the time it gets back to its April highs.




Fundamentally - first remember who the leaders of the company are: Outstanding group -

*

The Chairman of the board of NNRF is Larry McQuade, Formerly Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co. He also served as United States Assistant Secretary of Commerce from 1963 through 1969 and at the U.S. Department of Defense, as Assistant to the Assistant Secretary for International Security Affairs, in the administration of John F. Kennedy.
*

The CEO of NNRF is Prof. Valery Lebedev, PhD is the former Deputy Nuclear Power Minister of Russia.
*

The Head of Decommissioning Projects for NNRF is 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. 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
*

Advisor to NNRF and CEO of NUCON-RUS is Valery Zubov, Ph.D., Member of the Russian Federal Parliament Committee on Credit Organizations and Financial Markets. In other words he oversees the stock market and banking regulations in Russia.

This is the type of team that gives NNRF its international respect and leadership.

There are many things going on that will in time on their own likely propel the stock to new all time highs but stocks tend to start their moves before events unfold completely.

Some of the things going on include:

The G-8 has pledged at least $4 billion to fund nuclear clean up projects in Russia and most of these contracts have not yet been awarded. NNRF has stated that they will begin to show revenues from nuclear remediation in the forth quarter of this year.

The European Union has a ban on the use of lead starting in 2010 and right now NNRF has the only proven replacement in FEECOM/BIECOM which is used for nuclear shielding and is undergoing its certification now for the EU. In Germany alone, there are 17 nuclear utilities with 1,615 metric tons of lead, which is the equivalent of 1,300 metric tons of BIECOM. A realistic replacement program of 10% per year would require 130 metric tons of BIECOM annually. Further, the site managers of the nuclear power stations are currently considering the use of FEECOM and BIECOM to cover the tubes and pipes within the power stations.

The company is finalizing two additional acquisitions.

The Company is currently conducting an evaluation of a future listing on either the American Stock Exchange or NASDAQ. NNRF believes it will complete this evaluation and be able to elect the appropriate course of action during the third quarter. Other potential future listings on the London Alternative Investment Market, the UAE Exchange, and the Russian Trading System.

The company with ATOLL has about $200 million in orders and has another bid in for around $100 million. Any added contracts for nuclear power plant equipment or new international orders for FEECOM/BIECOM, NucaP, nuclear remediation or waste transportation, storage or disposal will certainly be another catalyst for stock price appreciation.

There are far too many things taking shape now to put in this short update but just wanted to make you aware of the technical side of the stock now as it looks like we may be starting another move higher in the coming days and weeks.

This is the part of press releases that many people do not read yet a part that outlines the company clearly so a suggested read. Please call with any questions.

NNRF is a U.S. corporation with executive and operations offices in Moscow, Berlin and Washington. NNRF offers design and manufacturing of specialized products for nuclear reactors and nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF owns manufacturing facilities and provides both equipment and services for nuclear power plants and compliance, shielding, transport and interim and final storage requirements for government agencies and nuclear service companies. NNRF also owns or licenses proprietary leading edge technologies which provide NNRF with a market edge in manufacturing, design, engineering and services capabilities. NNRF's management team has extensive industry and government service including extensive in-house expertise in all aspects of radiological protection and radiological waste management. NNRF has entered into strategic alliance agreements with government agencies of the Russian Federation. Access through NNRF's strategic alliances to key processing and disposal facilities in the Russian Federation enables it to complete a broad range of projects efficiently and cost effectively. NNRF believes that this access provides vertically integrated services that distinguish it from competitors. NNRF manufactures nuclear power plant equipment in Russia and has multi-year sales contracts for a significant portion of current production with ROSATOM, the owner and operator of all Russian nuclear reactors. NNRF also provides products, services and proprietary technology based solutions through its strategic alliances to multilateral and bilateral funded projects located in northwestern Russia known as the Northern Dimension Environmental Partnership (NDEP). This area contains the largest repository of spent nuclear fuel and radioactive waste in the world. The projects involve the decommissioning and disposal of nuclear powered naval vessels of the former Soviet Union. The projects are funded by G-8 member countries. NNRF currently is expanding its marketing to include the European Union, China, India and North America in 2007-08 through strategic marketing partnerships with multinational energy service companies. NNRF is currently engaged in the due diligence phase of potential further acquisitions in 2007-2008 which are intended to substantially increase its current asset and revenue base.

As an existing member of a prime contract team for the NDEP (Northern Dimension Environmental Partnership) projects in Northwestern Russia, we are participating in projects at nuclear, radiological and industrial facilities located in former nuclear fuel disposal and refueling sites in Russia. These projects include Andreveva Bay, Saida Bay, Gremihka Bay, and the specialized Federal technical boat Lepse.

Our decommissioning projects are progressing satisfactorily and we believe, under the supervision of our recently appointed Head of Decommissioning Projects, Victor Akhunov, the 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, that we may enlarge the scope of our current involvement. We believe that revenues from the first deliveries of our products and services for these projects will commence in the fourth quarter of 2007 and may continue through 2012 or longer.