Phone: 1-800-449-9413 Fax: 1-800-451-6087 4-6-99
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NuElectric Inc.
As investors, we are always looking for companies that match opportunity with competency. Investing in a low-priced stock that is virtually unknown but is on the threshold of a dramatic breakout, can provide the astute investor with outstanding gains.
To find such an undiscovered gem, all you need to do is take a peek into the operations of NuElectric, Inc. (OTC BB:NRGE).
NuElectric has recently positioned itself to capitalize on an enormous opportunity. You may have recently heard that the federal government has underestimated the risk posed by arsenic in drinking water, which puts large numbers of Americans at risk for bladder and lung cancer. As a result, there has been a call for the EPA to strengthen the current standard of the maximum allowance of arsenic per liter of water. Currently the maximum is 50 micrograms per liter. Officials at the EPA have responded to the call of concern, and said new arsenic standards would be proposed by January 2000.
With NuElectric's signing of a letter of intent to acquire Clean Water Technologies, Inc. the Company has smartly aligned its business with the most valuable technology available for removing arsenic from water. CWT's cutting edge technology is based on a filter media that combines two naturally occurring materials – iron and zeolites, which work to bond with arsenic, effectively removing it from the water. Arsenic is most commonly found in the form of Arsenate and Arsenite. Many of the existing processes work by oxidizing (changing) Arsenite (a form of Arsenic) to Arsenate, in an additional step, before the Arsenic can be removed. CWT's technology removes both the forms, with no need for the additional step and concurrent expense of oxidation. Not only is CWT's iron-modified zeolite technology a superior performer for many reasons vis a vis competing products, it is also inexpensive. The end result is a product that delivers power-packed value to the U.S. water quality market, which is an $80 billion industry.
Management plans to capture at least 25% of the community water systems market, and based on possible EPA standards ranging between 20 ppb or 1ppb (representing the "high" and "low" extremes) sales at the end of three years would range from $37 million to $119 million, respectively. For long term potential using only a miniscule 5% profit margin (on low end sales projection of $37 million), gross EPS would be $.63/share. And with a conservative P/E of 15, the stock would be over $9 a share. Given the present value of growth opportunities of NuElectric, you can see why this Company represents one of the best investment opportunities in the micro-cap market today.
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Symbol NRGE
Shares Outstanding 2,900,000
Float (est.) 250,000
52 week High/Low 5/32 – 27/32
12 Month Target $3.00- $4.00
Contact: Howard Scala 727-942-8938
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Angels S.W. is a research and consultung firm and a division of Janson Capital, Inc. which publishes reports & newsletters based on information supplied by analyst and the company. Janson Capital, Inc. received compensation of $10,000 and 15,000 shares of stock. Some of the officers of JCI may have purchased a position in NuElectric. Janson Capital, Inc. may also be involved with consulting, and assisting publicly owned companies with financing.
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