Ludlow Capital Issues Research Opinion on Relm Holdings, Inc.
Last Updated: June 30, 2010 - 8:50am EST
NEW YORK--Ludlow Capital issues research and traders opinion on Relm Holdings, Inc. (OTC:RELM), a developer of financial information service technology, with a 'speculative' price valuation target to $0.01 to $0.02 per share.
SUMMARY
Although a ‘speculative’ micro-cap play, the Company has shown increased interest based on current technical indicators within their trading pattern, current share structure, and pending new acquisitions for the company. Through their holding subsidiary, Access Versalign, Inc, the Company is expected to announce several new acquisitions within the financial information technology sector, which in turn could provide for increased revenues and cash-flow for the parent holding company.
As of March 31, 2010, the Company had around 650 million shares issued and outstanding. Based on pending acquisitions, and relative tight share-structure, we feel a fair-value for this start-up company to be in the range of $7 to $10 million for the time being. So, even if on a conservative bases we round the shares up to an even 700 million outstanding, then a price of $0.01 to $0.02 would still equate to only $7 to $14 million market cap.
On the short-term, we would watch for a break of the 200 day moving average at around $0.0023 for indication of true break-out trend for the stock, with additional resistance around the $0.004 to $0.0045 range for move up to our $0.01 target price. Technical indicators such as the MACD, and short-trend moving averages are pointing to a potential break upward something in the very near-future.
Risks Involved
As with most equities, dilution of common shares could reduce the valuation of the company, and thus effect and valuation targets, and price performance. Other risks range from inability to obtain proper financing, decrease of demand for financial servicing products, and under-performance of revenue expectations. The company is currently traded on the Pink Sheet exchange, and thus has limited public and audited information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions.
HTML clipboard Bahrain Calls for Increased Heavy Oil Production
Last Updated: June 11, 2010 - 8:45am EST
(New York)--Bahrain's oil minister, Abdulhussain Mirza, told the Heavy Oil World MENA conference on Thursday that Middle East countries should increase production of heavy oil as oil prices remain higher and improved technology makes it easier.
Mr. Mirza commented that heavy oil reserves in the region were estimated at 1 trillion barrels, or 28 percent of total world reserves, but historically accounted for little more than 10 percent of production. "The vast reserve demonstrates the importance of heavy oil as a future energy source, one that cannot be overlooked and, therefore, companies that position themselves early in the heavy oil business are likely to win the game," Mirza said, according to local news reports.
Heavy crude oil is distinguished from light crude oil because it does not flow as easily due to a higher specific gravity. Oil sands and natural bitumen, which don't flow at all, are also included in this definition.
Using advanced oil recovery technology and developing the heavy oil sectors of the Awali field in Bahrain could double or triple its production from 32,000 barrels a day currently, Mirza said.
One of the smaller-cap oil technology companies working in the heavy oil recovery field is Freedom Energy Holdings, Inc (OTC:FDMF), which through its KC9000 technology is effective in freeing oil wells, getting heavy deposits to flow and improving heavy oil to refinery grade, and is currently working on developing several heavy oil projects and joint-ventures in the Middle East, Venezuela, and South Texas. In addition, the Company is also currently in stage 3 studies with BP Plc (NYSE:BP) regarding Gulf oil clean-up efforts, and is expected to meet with Plaquemines Parish officials in Louisiana early next week.
With US offshore production of oil now on hold, many producers may turn their heads towards the more difficult oil sand projects as these news technologies now make it feasible to produce.
Bahrain recently signed an agreement with Mubadala Development, an Abu Dhabi state-owned firm, and Occidental Petroleum (NYSE:OXY) of the US, to boost heavy oil production in the Awali field, one of the oldest in the region and Bahrain's only oilfield. The national oil companies of Bahrain, Kuwait and Saudi Arabia were represented at the Bahrain conference, as well as multinational oil giants Total and Chevron (NYSE:CVX).
"Heavy oil will be a savior to the ever-increasing demand for fossil fuels from the developing nations," Mirza was quoted as saying.
Ludlow Capital Issues Research Opinion on Freedom Energy Holdings, Inc.
Last Updated: June 8, 2010 - 4:32pm EST
NEW YORK–-Ludlow Capital issues research opinion on Freedom Energy Holdings, Inc. (OTC:FDMF), a provider of petroleum remediation solutions, with a near-term valuation price target of $0.04 to $0.06 per share.
INVESTMENT HIGHLIGHTS
* BP Testing – company has been placed in 'stage 3' testing with BP, with potential for upgrading to 'Stage 4' for oil clean-up recovery contracts.
* Louisiana Officials – meeting directly with Plaquemines Parish officials to demonstrate oil recovery technology, and potential of local municipal contracts
* Project Financing – finalized operational financing, ability to market and fulfill contract orders
* Share Structure – currently around 500 million shares issued and outstanding, with 200 million in public float.
* Other Projects – working on additional projects in Middle-East, Venezuela, and South Texas
* Market Cap Valuation – current market cap valuation of around $5 million, with projected fair-market valuation of $20 to $30 million.
BP Testing (Stage 3 Status)
The Company received verification from BP that their KC9000 has been approved for further technical review. Out of thousands of oil spill clean-up technology solutions submitted to BP, Freedom Energy's KC 9000® was one of several hundred escalated to stage 3 for further review. If the technology can be considered as "Feasible, Proven" or "Feasible Not Proven" it will then be escalated to Stage 4 for final review, and open the door for oil spill recovery contract with BP. With political pressure on BP growing from the Obama administration, we anticipate seeing many of these 'stage 3' clean-up solutions fast-tracked to the Gulf, which could position the company in potentially obtaining a contract in the near-future.
Louisiana Officials
The Company plans to meet directly with officials from Plaquemines Parish, Louisiana, around June 14th to discuss how their KC9000 technology could aid them in their oil recovery and clean-up efforts. Going directly to local officials and coastal regions may be a smart move on the companies part on closing an initial contract for oil waste recovery. These meetings with local officials could open the door for the company to demonstrate their technology, while at the same time developing network contacts for future remediation contract agreements.
Project Financing
The Company has finalized and obtained equity financing in the range of $720k, which should assist in providing operational cash-flow, and providing funds on fulfilling any new contract orders that may come in. Although a bit dilutive at current share price, the financing still keeps the share structure at around 500 million outstanding, and should now open the door for company to close and fulfill new contract orders.
Valuation Summary
With project financing in place, and Freedom Energy being one of the few companies to be included in BP's 'stage 3' technical program, the prospects of this company closing one of the many sought after oil recovery contracts have increased. Even after the current financing, the company now has around 500 million shares outstanding. If given the potential for them to close a contract with BP, and the current shares outstanding, we feel a 'speculative' fair-valuation for the company to be around $20 to $30 million, or $0.04 to $0.06 per share range.
Verification of first or larger contracts with either BP, or local municipalities in the Gulf Coast region could justify a much higher market valuation.
Risks
As with most equities, dilution of common shares could reduce the value of the company, and thus effect and valuation targets, and price performance. Other risks range from inability to obtain proper financing, decrease of technology, inability to close contracts, and under-performance of revenue expectations. The company is currently traded on the Pink Sheet exchange, and thus has limited public information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding this security.
http://www.wallstreetnewscast.com/profile/fdmf.html
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