A Top Performing Stock Under $10

Investment and Company Research
Select Research
COMPANY UPDATE

We all saw the shellacking stocks received on Friday. Believe it or not, there were a few stocks out of the thousands that trade on NASDAQ that hit new highs, which is amazing considering it was in the face of a sound drubbing.   One sub-$10 stock in particular had a strong day and technically it appears as if the recent moves are just the beginning. The favorable technical attributes, combined with very positive news announced after Friday's close bode well for investors new to the story.

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FORCEFIELD ENERGY, INC.

Making All the Right Moves

Rob Goldman
rob@goldmanresearch.com

March 9, 2014
 

FORCEFIELD ENERGY, INC. (NASDAQ – FNRG - $7.50)

Price Target: $10 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 and other lighting products for a number of premier LED lighting manufacturers; and through its award-winning subsidiaries, American Lighting and ESCO, have completed lighting installations and retrofits as well as energy efficiency upgrades, for numerous high profile concerns in a variety of industries.

 

KEY STATISTICS

 
Price as of  3/6/15 $7.50  
52 Week High – Low $7.50 – $4.44  
Est. Shares Outstanding 18.45M  
Market Capitalization $138M  
3 Mo Avg Vol 59,000  
Exchange: NASDAQ  
 

COMPANY INFORMATION

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

Website: www.ForceFieldEnergy.com
Email:     info@forcefieldenergycom

 

 

Divestment of holdings in TransPacific Energy represents a profitable and strategic move for FNRG and its shareholders.

A Financial Positive: On Friday, FNRG announced that it sold its 50.3% interest in TransPac for total consideration of $2M. This transaction includes $50,000 in cash and the return of 255,000 FNRG shares to the Company's treasury. This deal represents a $500,000 (or 33%) increase in the value of the FNRG interest in TransPac versus the amount originally paid in cash and stock—impressive for a sub-3 year holding that did not meaningfully contribute to overall financial performance.

Even Greater Strategic Positive: Wall Street should interpret this divestiture as a commitment by management to its LED initiatives and that meaningful growth and market share gains are in the cards in this segment over the next 12 months. By no longer expending resources to the TransPac unit, FNRG can focus exclusively on the line of business that will generate the greatest growth. Separately, this deal results in a roughly 1.5% shares outstanding reduction, which should be reflected in a slightly higher stock price.

Closer Constellation Ties a Plus. FNRG also announced that its ESCO subsidiary has expanded its channel partner agreement with Constellation in marketing its "energy efficiency without an upfront capital outlay program." Since this concept is a key marketing component for FNRG, these tighter ties now benefit the Company's marketing efforts nationwide.

Stock Has Wind at its Back. FNRG was one of just a few dozen of the thousands of NASDAQ stocks to hit a new high on Friday, despite the big market selloff. The current, bullish stock chart characteristics combined with the very favorable news above makes it is easy to see why the shares should move toward our $10 target.

Recent Trading History For FORCEFIELD ENERGY, INC.

(Source: www.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.

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