NEW ORLEANS -- I met the principals of this LED lighting and heat recovery developer a year ago at the
New Orleans Investment Conference.
At the time, I was of the opinion that Forcefield Energy's (OTO: FNRG, Stock Forum) Costa Rica manufacturing might be stretched, meeting demand for LED units -- say in retail outlets or in schools or cities that were reducing their energy take. Municipalities are a good source of these contracts in Mexico and in the USA.
Forcefield says it landed a very old city in Michoacan. Mexico, that this week signed for $8 million of LED business paid across a 10-year span.
The contract requires Mexico government financing, which is likely why Forcefield shares on NASDAQ are stagnant Friday. Not to snub Mexico, but when you put together those words, Mexico and financing, shareholders want to see the nitty gritty details and credit ratings.
Still, the shares have risen incrementally since October 2013, when I met Richard St-Julien, an intense Quebecois man who operates FNRG from Costa Rica and from New York City.
The Nobel Prize committee in Sweden just awarded an LED pioneer, Shuji Nakamura, a University of California at Santa Barbara, professor, who worked many years ago with two Japanese scientists on isolating the blue part of the Light Emitting Diode and blending it with other colors for brightness and variety. See: article.
On the New Orleans connection, I ponder whether I can harvest another valid investment from the show, which is in two weeks. The other big one recently was Cayden Resources (TSX: V.CYD, Stock Forum), a gold mine developer with Mexico connections. I have told that win-story New Orleans enough times now for our TCR crowd to begin gagging.
We all made out like banditos on Cayden. See article.
I have yet to purchase FNRG shares. Mr. St-Julien assures me the shares will be higher than they are now when the conference takes place. Of course, no such assurance is possible, but that is the way the CEO is. He and his executives are sitting on millions of shares that he says they have no intention of selling at current prices.
Uruapan is the city in Mexico that is conforming with a 2012 national climate-change law. Forcefield has other Latin America clients, and it recently won a pact with a Mexico supermarket chain for LED lighting "solutions."
Mr. St-Julien's little wanna-be green machine is also in San Diego, California, and across restaurants and commercial spaces in the USA.
Forcefield shares are thinly traded at $6.30 USD, with fewer than 20 million shares fully diluted. The CEO tells me the biggest "upside" will come when this company's heat recovery technologies are winning contracts for re-harvested energy from natural gas flares and other commercial vents.
You can see these flares and vents in Louisiana and across the southern USA. I do when I am fishing down below New Orleans all the time. Image here.
At any rate, our TCR PAYING subscribers also are getting updates on sputtering, for now, BioCryst Pharma (NASDAQ: BCRX, Stock Forum) and the Ebola-virus, and about our top autumn performer bar none: Calibre Mining (TSX: V.CXB, Stock Forum). As for Colt Resources (TSX: V.GTP, Stock Forum), the clock ticks ominously for the misfiring Portugal prospector of gold and tungsten. I continue to hold all of these.
-- Thom Calandra at thomcalandra.com and The Calandra Report
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