Nf Energy Saving (NASDAQ:NFEC)

Added to the GeoSpecial list on July 28, 2009 @ 3.30 adjusted for a 1 for 3 reverse split.
 
Catalyst: Hot sector; Appeared to be on the verge of an EPS break out; Significant contract wins;
Peak performance: Reached a high of $20.00 on August 26, 2009.
Current Price: $2.50

Current road block:  The company did not live up to our EPS expectations during the 2010 first quarter; First quarter EPS was flat which the company attributed to a non-cash expense, when in reality this only accounted for a reduction in EPS of $0.004; Margins have not improved with increases in revenue; Did not reiterate guidance in its 2010 first quarter release; Delay in the installation and operational testing of a number of products; Needs to raise more money to meet revenue targets, which could lead to dilution.

Removing from the GeoSpecial list.  Placed  on GeoSpecial on the Radar list. This is a stock we will not be purchasing anytime soon, unless we see a better margin showing in future quarters and/or we gain more clarity on financing needs. Although Revenue guidance is still bullish, the fact that the company has not issued net income guidance may leave investors, including us, in limbo.  

Nf Energy Saving cotempates enacting a reverse split:

To our Stockholders:

Enclosed please find an information statement providing information to you regarding an action taken by some of our stockholders to authorize a reverse stock split of NF Energy Saving Corporation’s outstanding common stock at a ratio resulting in a reduction of the aggregate number of shares of outstanding common stock from anywhere between 10% (i.e. 10:9) to 500% (i.e. 5:1), as decided by the Board of Directors of NF Energy Saving Corporation in its discretion, to take effect at such time within three months of the date hereof as determined by the Board of Directors in its discretion. These actions were approved by written consent in lieu of a meeting of stockholders by those stockholders holding a majority of our issued and outstanding common stock entitled to vote on the record date.