To OTC Journal Members: 
 

The NF Energy (OTC BB: NFES) Becomes NFEC Tomorrow

No need to go over this again. If you missed my edition yesterday, here's the scoop: NF Energy, currently NFES, becomes NFEC tomorrow and for every 3 shares you own today, you will own 1 tomorrow. The stock will likely be trading at 3 times the closing price out of the gates. Even Steven.

If you track your quotes on Yahoo! it's NFEC.ob- NFEC everywhere else.

The company is positioning for an upgraded listing, and needs the higher price as a step in the process. Stand by for more fireworks.
 

CalAmp (NASDAQ: CAMP) Correction

This past weekend I published a strong speculative buy recommendation on CalAmp (NASDAQ: CAMP). This is a company involved in the development and deployment of wireless and satellite related technology. One analyst I like has the stock pegged at $5 as the company is using its substantial positive cash flow to pay down its long term debt.

There was a little confusion about the name. I have been following this one on and off for years, and they seem to come up off the canvas like Rocky Balboa time and time again until they finally win.

My personal goof up aside, the actual name of the company is CalAmp and it trades on the NASDAQ under the ticker CAMP. Sorry for the confusion. My mistake. 

An analyst I know believes the company will turn profitable (EPS) in their fiscal Q4 (end of November), and earn $.33 on $165 million in fiscal 2011 which actually begins March 1 of next year.

This fiscal year- 2010 which ends Feb 28- $111 million in revs and turning profitable for the first time in 3 years in their Q4.

If you want an eye opener on this one, here's a resource for you. Check out www.insidercow.com. This is a great resource site for insider transactions. Put CAMP in the search line, and you will see a series of insider buys from the CEO, CFO, and a board member starting in May of this year. No insider sells.

Insider buying is always good. Insider buying is not always bad. CAMP- $5 later this year or early next. Write it down.
 

China Energy Recovery (OTC BB: CGYV): Not Feeling the Love

There was and 8K filing today out of CGYV, and the market is not giving the company any love despite it being a major long term positive for the business. 

I was a bit surprised there was no associated news release- perhaps one will come out tomorrow. 

The 8K filing stated China Energy Recovery has entered into a "series of understandings with Yangzhou (Yizheng) Automobile Industrial Park Administration Committee" concerning the new state of the art faciilty it has been working on for some time.

Here's some of the details disclosed. First of all, the company plans to build a "state-of-the-art" manfucturing facility to meet the demand it perceives will be coming over the next five to ten years.

Secondly, the 8K filing states the new facility will have the capacity to take the company to $100 million in annual sales. The new plant will be located in an industrial redevelopment park about an hour outside of Beijing. 

CGYV will have a rail spur that connects to China's railway system backing straight into a loading doc at the plant. For a company who fabricates some of the largest boiler systems and heat recovery systems in the world, this is a huge benefit, and it makes the company highly competitive globally.

Also, the 8K filing states CGYV will also have an option on a tract of land on the Yangtze River. Looking out much longer term, this would give CGYV the ability to ship its systems by water as well.

The 8K fiilng also states the Industrial Park Committee has already allocated $2.23 million in grants for the project. The anticipated costs all in are about $20 million. The construction is supposed to start in November, and the facility is expected to start manufacturing in Q4 of 2010.

I believe the market has viewed this as a negative temporarily due to the language concerning the $20 million costs for building the facility. The market is perceiving this could lead to some dilution, and the market hates dilution in the short term.

Here's where the market is getting this wrong. There are all kinds of grants and subsidies available from the government for this sort of development, and there will be more of that coming down the pike in addition to the $2.23 million they have already been pledged.

Here's my thought on CGYV- anything below $1.20 based on where the company is today is a buy- it's a sell at about the $2 level if it were to get there shortly. If you are capable of seeing out one to two years (which few investors are today), this is a $5 to $10 stock. The Chinese government is implementing all sorts of new energy related and pollution savings measures, and CGYV will be the beneficiary of both the stimulus package and the new initiatives to reduce China's carbon footprint. CGYV is likely to net $10 million plus in CY 2011, and the stock will likely be much higher.

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