SunSi Energies (OTC: SSIE) Company Highlights, Key Investment Hightlights in Goldman Report

SunSi Energies (OTC: SSIE) Company Highlights, Key Investment Hightlights in Goldman Report

SunSi Energies Inc's (OTC: SSIE) goal is to become one of the world's largest producers of trichlorosilane ("TCS"). The Company plans to achieve this objective by acquiring and developing a portfolio of high-quality, scalable, strategically located TCS production facilities that possess a potential for future growth and expansion. U.S. based SunSi controls approximately 55,000 metric tons of TCS production in China.

Recent Company Highlights

  • Closed first acquisition of 90% of a TCS distribution company, Baokai, in December 2010.
  • Closed second transaction with the acquisition of a 60% equity interest in a TCS manufacturing company, Wendeng, in March 2011.
  • In 3Q11, emerged from development stage status to an operating entity.
  • In 4Q11, began generating significant revenues and recorded the first profitable quarter in Company history.
  • In June 2011 the Company fulfilled its payment obligation to Wendeng when $2.7 million in redeemable SunSi common stock was converted to equity.
  • Shipped first TCS order outside of China to Nitol Solar (Russia).
  • Initiated the up-listing process to NASDAQ CM.
  • Completed Due Diligence on potential acquisition of a 20,000 MT facility.

Historically, SunSi has sold its TCS to some of the largest polysilicon companies in the world and to other significant Tier II polysilicon companies. Due to the nature of the nature of the industry, the amount of TCS supplied to these entities may vary from quarter to quarter based upon market demand. The fact that the company's TCS from both Baokai and Wendeng meets these entities’ high quality standards is indicative of SunSi's capabilities and potential.

Baokai has supplied TCS to:

1. Luo Yang Zhong Silicon Hi-tech Technology Development Co. Ltd.

2. Jiangsu Zhong Neng Silicon Industry Technology Development Co. Ltd.

3. LDK Solar

Wendeng has supplied TCS to:

1. Luo Yang Zhong Silicon Hi-tech Technology Development Co. Ltd.

2. GCL Silicon Technology Holdings Inc. -

3. Wuxi Zhong Cai Technology Co. Ltd.

4. Lian Yu Gang Zhong Cai Technology Co. Ltd.

5. Zhe Jian Xie Cheng

6. Wendeng Huahai Chemical Co. Ltd.        

SSIE will be hosting a non-deal roadshow over the next few months. The company is available to travel anywhere is the US. If easier, a webcast conference call can also be scheduled. 

Goldman Small Cap Research has released a report on SunSi Energies. Several excerpts are included below. 

Key Statistics

Price as of 1/27/11 $2.74 
52 Wk High – Low $5.00 – 2.40 
Est. FD Shares Out. 29.7M 
Market Capitalization $81.4M 
3 Mo Avg Vol 6,600 
Exchange OTC: Q

Investment Highlights

From time to time opportunity knocks on the proverbial investors’ door. Some view it with caution. Others as an opportunity. In the case of SunSi Energies, Inc. (OTCQB - $2.74 – SSIE) we view this opportunity as a gift. In fact, we think that the worst case scenario for investors who buy the stock is what is termed as a dead cat bounce, which would be a swift 15-20% rise from current levels.

The Opportunity

The selloff which is wrongly based in part on market perception presents a great time to establish a position. It reflects the past, not the present or the future and is a gift to savvy investors. As noted above, with SSIE serving as a lagging indicator, a move higher, in tandem with the other solar stocks is around the corner. Each time management scores a new “win” outside of China the stock should also benefit investors. Finally, the move to NASDAQ, in our view, is a fait accompli, serving as a big driver back to $4.00 or higher.

We maintain our Speculative Buy rating and believe that the stock could reach $6.00 during 1H12.

Read the full report here