NewGen Technologies, Inc. Independent research, analysis and opininons on
NewGen Technologies, Inc.
| Company: |
NewGen Technologies, Inc. |
| Ticker: |
NWGN |
| Profile Price: |
$0.39 September 5, 2006 |
| Sold Price: |
$0.71 January 3, 2007 |
| Gain (loss): |
82.05% |
| Valuation: |
$15.21 million |
| Website: |
http://www.NWGNtech.com |
| Disclosure: |
We own shares. Company became
client on December 8, 2006 until January 31, 2007 |
| Original Hot Points of
Research and Analysis: |
NewGen
is an alternative fuel company that is focused on
manufacturing, processing and distribution of advanced biofuels. Last year, they acquired three fuel terminals
with total storage capacity of 10 million gallons and
annual throughput capacity of over 500 million gallons.
The three terminals are located in NC, SC and GA and are
all scheduled to open during the first quarter of 2007.
In addition, the company expects to begin construction
on a new 60 million gallon biodiesel production facility
in Georgia later this year.
Alternative fuels
have been in the spotlight with various state and
federal agencies passing various laws and acts to move
America away from reliance on foreign oil and to reduce
the pollution/emissions created by existing fuels.
What intrigues us
about this stock now is the announcement they just made
after the market closed on September 5, 2006. One of
their subsidiaries (60% owned) acquired IPF Group based
in Germany, which has 45 full-time employees and more
than $30 million in annual revenue. Given that NewGen
itself doesn't expect to generate revenue until next
year, we think that this acquisition should have a
material impact on the company and its stock price.
With 39 million
shares currently outstanding and a closing stock price
of $0.39, the company has a $15 million market value.
Pre-revenue, that might make sense. Post-acquisition of
the IPF Group...we think the stock has room to run.
|
