Friday, July 31, 2009

New very speculative pick - RCON (Recon Technology)

This is super speculative pick (but that seems to be what some readers are looking for), so be careful. The pick is RCON and is a very small IPO by an underwriter I do not know of, of a Chinese company (see the risk?). Still, it has the potential to really move as its got a microfloat of 1.7 million shares is profitable (made .87 a share in the first nine months of 2009 on big year over year growth trading under $6 and no one knows about it YET). Worth a gamble imo.

Here's the snippet from briefing...
Recon Technology IPO: tiny Chinese co that helps oil & gas companies with automation services (5.60 +0.03)

Recon Technology is a tiny IPO that snuck out yesterday (priced 1.7 mln shares at $6). Since China stocks have been doing well, we wanted to provide some quick background. The co provides Chinese oil & gas companies with automation services that increase efficiency in exploration, extraction, refining and processing. Recon's proprietary software and hardware manage the oil production and process in real-time thereby increasing extraction levels, reducing impurities in extracted petroleum and lowering production costs. Recon is the first Chinese non-state-owned oil and gas service company to go public in the US. The co is profitable with high margins (20% net margin) and posted revenue of $9.1 mln for the 9 months ended Mar 31. This is a tiny company with a $25 mln market cap. Anderson & Strudwick is the lead underwriter.

Here's the link to the prospectus....

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