ORLANDO, Fla., June 2, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on Andatee China Marine Fuel Services Corporation (Nasdaq:AMCF), a China-based premium blended marine fuel service provider engaged in the business of production, storage, distribution and sales of marine fuel to cargo and fishing vessels in Northern China.
Aditya Khandekar, CFA, RedChip Research Analyst, reported:
"AMCF caters to the underserved customer segment of fishing boats and marine cargo vessels, supplying them quality marine fuel blends. This market in China is highly fragmented, with no perceptible leader and characterized by lack of standard products, poor service and quality issues. With net proceeds of over $20 million from its IPO in January, AMCF is well positioned to execute a roll-up of weaker players owning distribution facilities in new markets."
"The Company has built its mid- term growth strategy on the platform of a 'One Stop Marine Service Depot' where the Company directly sells the marine fuel oil to the end-customer and provides the convenience of purchasing other value added services and products at a single distribution point. This would help de-risk its business model by having diverse sources of revenues and can reduce seasonal variations in revenues while improving margins and increasing barriers to entry for potential competitors."
Khandekar continued: "We are initiating coverage of AMCF with a Strong Buy rating and a 12-month price target of $9.60. Trading at a significant discount to its peer valuations, we estimate 2010 cash per share of $2.85 which represents two-thirds of the share value, which means that the core business is not being accurately reflected. This in our view presents a favorable risk reward equation to long term investors with a potential of significant upside with limited downside."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for AMCF, please visit: http://www.redchip.com/about/aboutmain.asp?rid=251">http://www.redchip.com/about/aboutmain.asp?rid=251
To learn more about Andatee China Marine Fuel Services Corporation visit http://www.redchip.com/visibility/investor.asp?symbol=AMCF
About Andatee China Marine Fuel Services Corporation
Andatee China Marine Fuel Services Corporation ("Andatee" or the "Company") is a leading independent operator engaged in the production, storage, distribution, wholesale purchase and sale of blended marine fuel oil for cargo and fishing vessels in Northern China. Andatee is headquartered in the City of Dalian, a key international shipping hub and an international logistics center in Northern China and maintains operations in Liaoning, Shandong and Zhejiang Provinces in the People's Republic of China.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Beijing, China; Paris, France; and Seoul, Korea. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™. To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor's objectives, other securities holdings, financial situation needs, and tax status. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Andatee China Marine Fuel Services Corporation ("AMCF") is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. AMCF agreed to pay RedChip Visibility a fee of twenty five thousand dollars in cash for RedChip Visibility Program services, which includes the preparation of the equity research report(s). The equity research report(s) are prepared for informational purposes only and are paid for by the company portrayed in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of AMCF investor-related materials and radio programming. AMCF agreed to pay RedChip Companies, Inc. a monthly fee of nine thousand dollars in cash and a total of five thousand shares of Rule 144 common stock for twelve months of these services in addition to the aforementioned cash fee. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.