Here is an interesting (old) post from ST against Citron. It also has some in detail DD in it.
A website with the named citronresearch.com wrote a totally uniformed piece today about NUCON-RF. Their purpose seems to be to use lies and innuendos to try and get people to think negatively about a company in which they probably have shorted the stock.
The writer used no name and gives no contact information so that is very suspicious right away. As you all know my personal phone number is on my website as I have nothing to hide but the writer of this piece hides behind a web address where they think they can say whatever they want.
Their site used to be named stocklemon but I imagine they had so many lawsuits created by their lies in the past that they needed to change the name but I do not know for sure. We do know however that they are writing anonymously and if you go to their “About Us” page it says suspiciously “This page is under construction…”
They use the name “research” in their site title but they seem to do none on their own.
So we have an anonymous writer on a suspicious and unknown owner website writing false things.
To start they write that NUCON-RF has made “a series of mysterious acquisitions”
Well what kind of deranged statement is that? The CEO of NUCON-RF Prof. Valery Lebedev, PhD is the former Deputy Nuclear Power Minister of Russia and they bought 50% of ATOLL who make parts for nuclear power plants. How much more un-mysterious can that be? For the Russian government to allow a US company (the first and only one) to purchase such a highly sensitive Russian company says to me that the Russian government thinks very highly of NUCON-RF – think about that for a minute – do you really think just anyone can so such a thing? – if so than it is also very strange that no one before was able to do this. They write that they think it strange that ATOLL with such good sales would sell for only $2+ million in cash plus 4 million shares. Of course since they did absolutely no real research whatsoever but only wrote off the top of their head, they did not learn that ATOLL on its own could not expand to sell into and other countries or the former CIS ones as they had no licenses or access to capital to do so. To partner with NUCON-RF is a perfect match for ATOLL.
NUCON-RF has an agreement to co-lead an international consortium of European and Russian companies that will provide equipment, technologies and maintenance services to Rosenergoatom and their listed Russian contractors. Rosenergoatom is the operating utility of all Russia's nuclear power plants and is a main buyer from ATOLL. So ATOLL of course can see the huge benefit to them in this situation. Is there is a possible better fit to have the 50% shareholder in your company be the former Deputy Nuclear Power Minister of Russia and for them to already have an agreement with the country’s operator of all nuclear power sites? I think there is no better partner in the world. In fact only yesterday did they announce that now with NUCON-RF as a partner ATOLL increased the 2007 revenues so far by 52.5% adding $68 million to the former amount. For the unknown person to write that this is a mysterious acquisition is the most bizarre thing in my opinion. They even question the price of the acquisition. So on the one had they use innuendo to question the ATOLL company and on the other they say that that price paid is too small.
We have shown that the combining of these two companies is a perfect match and can help to expand the business for ATOLL . Besides the $2+ million in money they received 4 million is stock. Today it is true it is only worth $36 million but these are bright people and they see the huge renaissance of nuclear power plant construction going on in the world and they know also of the tremendous efforts underway and in the final planning to do remediation projects around the world and they know of the NUCON-RF expertise in this field. So yes at present the 4 million shares are only worth $36 but the owners of ATOLL understand that the share price will be much higher.
The writers from this website seem also blind to the knowledge of the formation of the huge Russian holding company ATOMPROM and what that means to the nuclear industry in Russia and in fact the world. I will not repeat the details here but they again so obviously did no research what so ever. Hint – ever hear of GAZPROM who has a $300 billion market cap and may become a $1 trillion market cap in 10 years? Twice the size or ExxonMobile. Well ATOMPROM is modeled about the same but for the nuclear industry instead of gas – do a Google search to learn something. This site citronresearch has never come to the company or to ATOLL at all and they make things up as they wish. If this website were a real company or even had a serious writer they would visit NUCON-RF or at least talk to them instead of hiding behind a URL. I invite them to come to Russian and see NUCON-RF and ATOLL in person and after to write a report after. They will not be shorting any stock when they see what is taking place. They seem to not understand that ATOLL is a very restricted company so have no website where you can look around. They work with very secure nuclear technology but I think a visit could be arranged for them
The writer makes a very derogatory comment about Mercer Capital and again they show their total incompetence. They suggest that Mercer Capital is selling stock retail. Mercer Capital does private placement of stock and no retail and they could have learned this with one phone call that they did not make. This citronresearch is looking more and more like a scam site that tries to scare people into selling stock based on lies they write. I imagine that the Mercer Capital attorneys will have something to say about the false statements made.
So citronresearch never came to Russia to check anything but Mercer Capital has come twice. Which one is real - the one with real people and phones or citronresearch who is totally unknown and hides.
Speaking of phones the writer does not even know that NUCON-RF has its operational offices in Moscow Russia – hello – they state that the headquarters is a P.O. box.
Let’s see – the Chairman of the board of NUCON-RF 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. With all of this the site citronresearch claims the headquarters for NUCON-RF is a P.O. box. I hate to use the word lame but really – do they not even check to see who is running a company they want to write about? Let me repeat--- Formerly Vice Chairman of Prudential Mutual Fund Management - United States Assistant Secretary of Commerce and yet they question the integrity of the company and at the same time give no name or phone number for themselves? They are a joke.
Did they not – no of course they didn’t, know that the adviser to NUCON–RF 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 but this seemingly low life site citronresearch prints the trash they said about NUCON-RF? Once again read who heads this company and with whom they have strategic relationships and learn a little. These relationships have been formed over many years and you only in the last year began to see the results and many more will come.
The thrust of the short article seems to be the hope that people would read and want to sell stock so citronresearch could make a profit on their short position in the stock.
We do not like to make any price predictions exactly here but let’s suppose that knowing the extremely high level and qualified leadership of NUCON-RF, that what is in the press releases is to become the case. We can extrapolate from the ATOLL releases $183 million in orders for 2007. As these are mostly from the main operator of all nuclear plants in Russia we need not question them. The profits in an earlier press release pointed to about an 18% profit so if that holds true it would be about $33 million and NUCON-RF’s share is 50% or $16.5 million. There are two other acquisitions in the works and they may contribute $4 million more give or take. This is only a rough guide but in this case the profits would be $20.5 million or about $0.58 per share based on 35,000 shares outstanding. (again realize that these are my personal extrapolations for illustration purposes but you can do your own using the press releases) So far we only show that if this is the least they do the current share price seems low for average of a companys in this field. PESI has a PE of about 23and ECOL a PE of 20 While CLHB (who does not do nuclear waste) has a PE of 24. So let’s say an average of 22 x $0.58 gives us $12.76. This is before any additional contracts.
So the site operators of citronresearch who may be lemons but do absolutely no research want to short the stock in a company that trades at a forward PE lower than the others in the field but one that has significantly higher potential in my opinion than the other three mentioned.
One specialty of NUCON-RF with huge potential is in International nuclear decommissioning and remediation projects. They have established themselves as 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.
At the moment the most urgent decontamination project is Andreyeva Bay, Building No.5, a highly contaminated former radioactive waste storage site undergoing decommissioning.
The total of projects to be funded in part by Russia, the G-8 or and/or the European Bank of Reconstruction and Development 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 is awaiting any assignment of contracts.
So the shortsightedness of citronresearch does not allow them in any way to grasp the very serious business that NUCON-RF is in and obviously, as we have said, they totally ignored the high level stature of the people running and connected to NUCON-RF.
This clean up above is only part of what is needed as we all know NUCON-RF has an agreement with ATOMSTROYEXPORT (another major part of what will become the giant ATOMPROM) in which 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-7 donor countries through the European Bank for Reconstruction and Development in Ukraine. The principal aim of the plan is to convert Chernobyl's Reactor 4, destroyed by the 1986 nuclear accident, into an environmentally-safe site.
You see citronresearch sees only that a company seemed to appear out of nowhere and have a run up in the stock price. What they do not see are the years of planning that have taken place before. The company for simplicity reasons took over an existing shell company to be on the US exchange as is a common practice. We know NUCON-RF plans to move to the AMEX or other major exchange and they await the SEC comment from their February FORM 10-SB filing.
NUCON-RF also 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.
