FROM ST
NNRF, Inc released their 2007 year end 10K results this week and it was the first to show fully audited equity accounting so now their report shows the income and profit of ATOLL. In this report we see that in 2007 ATOLL had net revenues of $43,123,001 and a net income of $14,208,205. Some have asked the worth of ATOLL in the past and now one could use the net income as a guide. There are many things that go into determining a company's value but a very common and simple one is to use Price to Earrings PE ratio. The S&P PE ratio average now is about 18 - so if, as an example, we use that we have $14.2 million (Atoll income) times 18 equals a worth of ATOLL (based only on 18 PE) of $255 million. NNRF own 50% so their percentage is then, on this example, worth $127 million. With about 48 million outstanding shares of NNRF this puts the worth per share of NNRI at $2.66 for its ownership of ATOLL. To determine the worth of NNRI you need to consider their other earrings and futures earrings potential, other acquisitions, their assets and their liabilities and all other details. This however gives an idea of what to consider and shows, in my opinion, that the current share price is very undervalued.
From the 10K we see that the assets of NNRF jumped from $1.6 million at the end of 2006 to $11.2 million at the end of 2007. NNRF only owned 13% of ATOLL until Mid March of 2007 when it was increase to 50% so for the year they are showing equity income from ATOLL at $5.6 million. (instead of the $7.1 million it would have been if they had owned 50% for the entire year.) There is still a loss then but much of it is non cash as stock was used in 2007 for funding and much of the loss is a one time event. I am not an accountant but I suppose some of that past loss can can be used against future profits for tax advantages. Please refer to the 10K for all details.
What is now clear from this audited financial report is that NNRF is already a substantial company as ATOLL had gross sales of (estimated over $70 million) and net revenues, as mentioned above, over $43 million. NNRF is in their new offices and the financial director and bookkeepers of ATOLL are also there which makes for better efficiencies and convenient continual communication.
NNRI stock again dropped back to the lower Bollinger band and in all the last times on this chart it has done so in the past, the stock has shortly afterward rallied much higher. The RSI and stochastics also are near their extreme oversold readings. It looks like many short sellers took the advantage of the 2-day low volume rise on Tuesday and Wednesday as the chart formed a little bear flag, and they sold it down the next two days. It has been in this channel many months and of course we look forward to the break out above the top of it at some point.
The MACD still has a strong positive divergence and money flow is above the center line.
Last week NNRF attended a conference "International cooperation for the elimination of nuclear legacy of the atomic fleet of the USSR". This was an international event with high level attendees: Rosatom and Rostechnadzor; representatives from donor countries (Great Britain, Norway, Canada, the European Bank for Reconstruction and Development, etc.); ISTC and the IAEA, the nuclear industry organizations taking part in research and development activities on the subject of ongoing programs. NNRF gave presentations of BIECOM, FEECOM, Bicoflex and Radseal and had good international interest to which the VP of NNRF Peter Goerke commented that he was quite optimistic. This again put NNRF together with some top participants in the field.
