ORLANDO, Fla., March 19, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has issued a 3Q FY 2008 research update for New Oriental Energy & Chemical Corp. (Nasdaq:NOEC), an emerging alternative fuel and specialty chemical manufacturer.
Gaurav Aggarwal, MBA, RedChip Research Analyst, reported:
"NOEC achieved solid revenue and earnings growth in 3QFY08 driven primarily by strong increases in the sales volumes of dimethyl ether (DME) and ammonium bicarbonate. In 4QFY08, management believes that continued cost control efforts and improved contract execution will achieve a further increase in operating income."
"The recent tripling of annual DME production capacity from 50,000 tons to 150,000 tons will help NOEC move toward its target of producing 600,000 tons of DME annually by 2010. Meanwhile, NOEC management has been building its pipeline of new contracts with major distributors in China and other countries in the region, already winning new monthly contracts worth a total of $4.3 million," Aggarwal wrote in the report.
"We continue to maintain our 'Buy' rating as we believe the stock offers an attractive investment opportunity in the emerging market for alternative fuels," he concluded.
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