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TRADE ALERT

Since our last trade alert on this NASDAQ company the stock reached a peak return of 12%. Looking ahead, the current, early stages of a short squeeze, new contract news, and a higher valuation for a key peer mean that this stock is primed to jump 20-25% from current levels in the near term.

Yesterday, the Company announced a new, large scale contract, and, with a series of major LOIs, bids and trials to its credit, investors can expect more seven figure deals ahead. Interestingly, one if its peers also announced a big contract yesterday and the stock jumped 40%.

See why we believe that this stock is the next one to move.

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FORCEFIELD ENERGY, INC.

New Contract News + Higher Industry Peer Valuation = Higher Stock Price

Rob Goldman
rob@goldmanresearch.com

September 12, 2014
 

FORCEFIELD ENERGY, INC (NASDAQ - FNRG - $5.99)

Price Target: $7.00 Rating: Speculative Buy
 

COMPANY SNAPSHOT

KEY TAKEAWAYS

ForceField Energy Inc. and its subsidiaries comprise a global company whose products and solutions focus on sustainable energy solutions and improved energy efficiency. ForceField is a distributor of LED lighting products for a number of premier LED lighting manufacturers; and through its subsidiary American Lighting, is an award winning-contractor that has completed lighting installations for numerous high profile concerns in a variety of industries. ForceField is also a licensee of modular, heat recovery systems that convert waste heat into clean electricity. Its patented technology is based upon the Organic Rankine Cycle (ORC) and uses proprietary, multiple-component fluids that are environmentally sound.

 

 

KEY STATISTICS

 
Price as of 9/11/14 $0.1089  
52 Week High – Low $6.98 – $4.44  
Est. Shares Outstanding 16M  
Market Capitalization $98M  
3 Mo Avg Vol 20,900  
Exchange: NASDAQ  
 

COMPANY INFORMATION

ForceField Energy, Inc.
245 Park Avenue, 39th Floor
New York NY 10167
www.forcefieldenergy.com

Phone : 212.672.1786
Email : info@forcefieldenergycom

Conclusion: The early stages of a short squeeze, new contract news, and a higher valuation for a key peer mean that FNRG is primed to jump 20-25% from current levels in the near term.

Nice Jump in 30 Days. Exactly a month ago, we profiled FNRG noting that the Company’s M&A strategy and its overall LED lighting efforts were just starting to reap major rewards and that a new report noting that a pending short squeeze was a clear trigger to accumulate shares. Sure enough, FNRG rose to a peak return of 12%. Based on the report’s findings, the increasing volume and share price of late, we believe that we are in the early stages of this short squeeze, with higher prices and volume ahead.

FNRG Wins Major Contract. FNRG announced a landmark contract to provide LED lighting solutions valued at $1.35 million for a large and prominent retail group with operations in 30 Mexican states through its 145 supermarkets and 18 distribution centers. With a series of major LOIs, bids and trials to its credit, investors can expect more seven figure deals ahead.

Look for FNRG to Mirror the Big Move in EFOI. Yesterday, LED peer EFOI announced a big contract of its own and the stock, with the aid of underwriter sponsorship from a recent secondary offering, rose by 40%. It is our experience that in the days following a move like EFOI, investors seek out peers that have not yet made a big move higher and typically acquire stakes in the lower-valuation peers, thus driving the shares higher. Therefore, we believe that FNRG is the next stock to make a big move higher with future contract wins enabling the stock to achieve and sustain a much higher valuation base.

 

Recent Trading History For FNRG
(Source: Stockta.com)

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer

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Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. Goldman Small Cap Research was not compensated for this trade alert and has not been compensated by the Company since a research subscription services agreement was executed in March 2011. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

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