Ssie green baron_upgraded_stock_pick_profile_05-08-12


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The Green Baron Views SSIE as Ideal Time to Accumulate
Due to Low Cost Manufacturing Capabilities, Pending
Synergistic Key Acquisition into Multi-Billion Dollar
Renewable Energy Market, Upcoming Money Show
Representation, and Low Stock Price

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Ssie green baron_upgraded_stock_pick_profile_05-08-12

  1. 1. Tuesday, May 8, 2012 – Before Market Open Upgrade Green Baron New “Stock Pick” SunSi Energies, Inc. (OTCQB: SSIE - $2.00 per share) Common Shares Outstanding – 30,073,302 Market Cap: 60.15M 52-Week High / $5.00 on Wednesday, June 22, 2011 52-Week Low / $1.05 on Tuesday, April 10, 2012 Average Price: $1.34 (50-day) / $2.96 (200-day)SunSi Energies Makes Impressive Deal toAcquire Controlling Interest in U.S.-based TransPacific Energy, Inc.The Green Baron Views SSIE as Ideal Time to Accumulate Due to Low Cost Manufacturing Capabilities, Pending Synergistic Key Acquisition into Multi-Billion Dollar Renewable Energy Market, Upcoming Money Show Representation, and Low Stock Price
  2. 2. April 18, 2012 – NASDAQ Stock Market Grants Accelerated Approval to Adopt Lower Initial Listing Bid Price Requirement to Either $2 or $3 if Rules and Certain Other Listing Requirements are Met Following Announcement of Major Deal, Goldman Small Cap Research Issues Updated Analysis of SSIE and a $5 Price Target SSIE Corporate Powerpoint Presentation Click to View SunSi PicturesThe Green Baron Report officially upgrades and selects SunSi Energies, Inc. (OTCQB:SSIE) today as our 104th Green Baron “Stock Pick” since inception, and we stronglysuggest members accumulate the stock as close to our profile price as possible. The GreenBaron Report originally selected SunSi Energies, Inc. as a Green Baron “Stock Alert” onTuesday, June 21, 2011 at $3.35 and it subsequently hit $5.00 per share. Results compiledfrom the most recent trade prior to dissemination of this report to the subsequent high will beclosely monitored at and through email updates to members. Wehave very aggressive price projections for SSIE and believe the stock has huge upside potentialbased on several positive fundamental factors.TRADER’S NOTES: SSIE is current in its SEC filings and trades on the OTCQB. SSIEspent most of 2011 trading between $3 and $4. However, the stock broke support inJanuary this year and has spent the past few months trading primarily between $1.50 and$2.00 per share. Although SSIE still trades a bit thin, we believe shares show goodsupport down here and a technical breakout will occur on a move over $2.00 per share.We see that improvement in technical support and stronger fundamentals point to agreat near term opportunity in acquisition of shares at current prices. The Companyappears focused on a move to the NASDAQ, and if approved, should create anotherreason for the shares to run.Through its operations in China, SunSi Energies, Inc. manufactures a specialty chemical knownas Trichlorosilane (TCS). TCS is a compound critical to the production of extremely purepolysilicone, from which solar photovoltaic (PV) cells and other products are made. In fact, 70-75% of all solar panels in use today are made with PV cells.On April 18, 2012, it was announced that SunSi Energies signed a binding letter of intent topurchase a 51% interest in TransPacific Energy, Inc. (TPE), a company with offices in Nevadaand California. SunSi will soon offer, via TransPacific Energy, innovative and critical renewableenergy conversion systems that efficiently convert waste or untapped heat from industrialprocesses, solar, geothermal biomass and landfills directly into electrical energy. Thepartnership will provide SunSi with U.S. based operations, diversify its customer pool, andposition SunSi is in the process of becoming a leading renewable energy company withsignificant technical expertise. Its Chinese operations and customer relationships are expected
  3. 3. to open new doors for TPEs products and enable it to significantly increase the value of theentire enterprise.The Green Baron Report has identified the following primary reasons for accumulation of SSIEnow:  Growth of Solar Industry and $454 Billion China Commitment to Renewable Energy Projects – On a global scale, energy consumption continues to rise and many believe solar is the best answer to clean energy. The use of alternative energy sources is still attracting huge investment dollars. Despite the recent downturn in the world solar markets, the Chinese government has publically disclosed a $454 billion USD commitment earmarked for renewable energy projects and has committed to grow its solar capacity by at least five-fold by 2020. This equates to five times more TCS that will be required to support this expected expansion.  TCS is Essential to Solar – Trichlorosilane is the main raw material used in the production of polysilicon; absolutely essential to the solar photovoltaic (PV) industry. SunSi produces high quality TCS at a comparably low cost.  Acquisition of Controlling Interest in TransPacific Energy, Inc. (TPE) – SunSi is extremely excited about this purchase as it brings a long list of potential benefits to the Company. For example, TPE’s innovative technology broadens SunSi’s reach in the green energy renewal arena, it establishes a U.S. presence and a new revenue stream with high gross margins, SunSi can open doors in China for TPE, both parties can leverage corporate overhead, and both firms have a history of working with billion dollar entities. TPEs technology could also enable companies to economically meet or exceed stringent environmental guidelines around the world.  Records $28.3 million in Revenues – In the Company first full year of operations, SunSi recorded $28.3 million in revenues compared to $1.1 million in the prior year.  New NASDAQ Rules to List – The NASDAQ is implementing new rules regarding its minimum bid price listing requirements. Through recent approvals, Companies can apply for listing on the NASDAQ with a minimum bid price as low as $2 per share if they meet certain rules and listing requirements, down from $4 per share. SSIE would be a great candidate, and is already in advanced stages of the up-listing process.  NASDAQ Listing Benefits – The advantages to a NASDAQ listing are numerous. Institutional investors, hedge funds, brokers and retail investors typically have little or no restrictions from investing in NASDAQ listed stocks. Although there is no guarantee that SSIE will achieve a NASDAQ listing, the Company is a very strong candidate due to its shareholder count, market cap, and revenue production.  Exhibit Hall Booth and Presentations at The Money Show in Las Vegas May 14-17 – Next week, SunSi will be attending The Money Show at Caesar’s Palace in Las Vegas. The Company will have representation through a booth at this popular convention and plans to present to attendees through three live presentations. Just a few large new investors in SSIE could have a very positive effect on SSIE common stock price. Our Green Baron Editor in Chief will also be in attendance at this year’s show.
  4. 4.  Wendeng Expansion and Growth Target – Wendeng is noted for its high quality production facility and Tier 1, multi-billion dollar clientele. Current capacity of Wendeng has increased to 30,000 metric tons since last summer when capacity was 20,000 metric tons. SunSi’s goal is to increase Wendeng’s capacity to a total of 75,000 metric tons.  SunSi Fulfills Wendeng Acquisition Payment Obligation – On June 15, 2011 it was announced that the 40% equity shareholder of the Wendeng facility opted to retain stock in SSIE in lieu of a cash payment. It eliminated the need to raise $2.7 million and demonstrated a strong vote of confidence in the stock.  Goldman Small Cap Research Issues Positive Outlook for SSIE in Updated Report dated April 20 with Price Target of $5 Per Share – Rob Goldman states in this new report that “this deal vaults SunSi into an even stronger position in the renewable energy space as synergies abound.” He continues, “With multiple vertical markets, including solar, the opportunity to bring TPE’s technology to China, and the deep synergies between the two firms, it looks like a win-win for investors.” To view the recently updated Goldman SSIE report, go to: Goldman SSIE Reports.Green Baron Analysis and ConclusionThe Green Baron Report embraces our ability to select stocks for our members at the righttime. Stock market investing is as much about buying the right stocks as buying stocks at theright time. To us, SSIE represents both right now.We believe the dip in SSIE shares earlier this year was caused in part to a downgrade by Zack’sResearch. Zack’s has more recently upgraded SSIE to neutral, and we hope to see this ratingimprove again once the acquisition of TPE is finalized. The Green Baron Report has taken allfactors into account, and we believe SSIE shares can easily see $4 to $5 per share over thenext three to six months. If SSIE is accepted onto the NASDAQ exchange, this near-term pricetarget could be achieved immediately and our near-term target would need to be raised.The benefits of the acquisition of TransPacific Energy appear to be boundless. Once investorsfully understand the implications of this purchase, we are confident the shares of SSIE willcontinue to improve. Presentations to new investors in Las Vegas next week and more plannedinvestor introductions over the coming months are expected to benefit the stock as well. Notmany investor know much about SSIE yet, but that is about to change. We strongly suggest ourmembers grab shares of SSIE while the stock is still below $3 per share.About SunSi Energies, Inc.SunSis goal is to become one of the worlds largest producers of trichlorosilane ("TCS"). TheCompany 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 growthand expansion. U.S. based SunSi controls approximately 55,000 metric tons of TCS productionin China. TCS is a chemical primarily used in the production of polysilicon, which is an essentialraw material in the production of solar cells for photovoltaic (PV) panels that convert sunlight toelectricity. TCS is considered to be the first product in the solar PV value chain beforepolysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry.Additionally, SunSi objective is to significantly expand Transpacific’s proprietary technology both
  5. 5. domestically and internationally. For further information regarding SunSi, please visit thecompanys website at to Become One of World’s Largest Stand-Alone TCS ProducersThrough acquisition, internal growth and expansion of high quality, strategically located TCSproduction facilities, SunSi Energies seeks to become one of the world’s largest stand-aloneTCS producers. Following the recent execution of two transactions, SunSi controls anestimated 15% -20% of the TCS market in China that includes 25-30 companies.Mercom Capital Group, LLC, a global clean energy communications and consulting firm statedon May 2, 2011:“We estimate China represented just shy of 3% of global demand in 2010 but more than 65%(and heading higher) of global solar production capacity. This makes China the world’s mostimportant solar manufacturing country and we expect its importance to continue to grow….”China offers a number of competitive advantages to the Company. In addition to being thelowest cost producer of TCS, the Chinese government plans to spend $454 billion in alternativeenergy over the next 10 years, the majority of which is intended to affect a five-fold increase inChinese solar production by 2020. Plus, with inexpensive raw material, low labor costs,scalable facilities, a base of large clients, and an estimated 65% of global solar productioncapacity, China is the place to be for solar production.Smart AcquisitionsTherefore, management early on elected to concentrate its initial efforts on China. At the end of2010, SunSi acquired 90% of Zibo Baokai Commerce and Trade Co. which owns exclusiveworldwide distribution rights for TCS produced by Zibo Baoyun Chemical Plant with a currentannual production capacity of 25,000 MT of TCS.In March of 2011, SunSi acquired a 60% equity interest in TCS producer Wendeng He XieSilicon Co. of Weihai City, China. Wendeng is noted for its high quality production facility andTier 1, multi-billion dollar clientele. Current capacity of Wendeng is 20,000 MT but is expectedto rise to 75,000 MT by year-end when funding is completed, following an expansion of theproduction facilities.Trichlorosilane (TCS) - IntroductionTrichlorosilane (SiHCl3) is a colorless liquid containing silicon, hydrogen, and chlorine. It is thekey intermediate compound used to produce extremely pure polysilicon, from which computerchips and solar cells are made.The key difference between solar grade and electronic grade polysilicon is the purityrequirement. The purity requirement for electronic grade polysilicon is the highest and typically99.999...% (in nine 13s) pure or more, while solar grade polysilicon tends to be at least99.999...% (in six 9s) pure.In 2000, the semiconductor industry consumed over 90% of the worlds silicon supply while thesolar industry consumed approximately 10%. In 2006, the solar industry consumed more than50% of the worlds available supply of polysilicon for the first time ever. This historic shift
  6. 6. illustrates the growing size and importance of the solar industry.Another important fact that is relatively unknown is the quantity of Trichlorosilane needed toproduce polysilicon. The ratio is 6.25 to 1. In other words, 6.25 MT of Trichlorosilane is requiredto produce 1 MT of polysilicon!The entry barrier for the solar business varies depending where on the PV value chain someonewishes to become involved. Becoming a Trichlorosilane or polysilicon producer will requirespecial permitting, large capital investment, in addition to several years of planning andconstruction. It is much easier to become involved at the other end of the PV value chain(downstream) as it does not require a large amount of capital and the business can quickly beoperational. Because of the above situation, companies involved in the Trichlorosilane andpolysilicon production tend to achieve the highest profit, followed by solar cell manufacturers.At SunSi, we believe that the best place to be involved on the PV value chain is exactly wherewe are - as a Trichlorosilane producer.Making Trichlorosilane (TCS)The process of producing Trichlorosilane begins by mining for relatively pure silicon dioxide(sand or quartz). The next step in the process is to separate the silicon from the oxygen which isachieved by heating sand grains containing silicon dioxide with carbon at very high temperature.At the end of this stage, the silicon or metallurgical grade silicon (MGS) is about 97% pure.In order to reach a purity level suitable for semiconductor device and solar applications, theMGS goes through a purification process, which involves the reaction of MGS with hydrogenchloride. This reaction will finally form Trichlorosilane.The distillation process, the final step in producing high quality Trichlorosilane, is all aboutbringing impurities below the part-per-billion (ppb) level. Liquefied Trichlorosilane at roomtemperature is purified by the distillation process until the impurity levels are acceptable.The PV Value ChainThe solar PV value chain (diagram shown below) consists of a number of specific and distinctsteps from the production of TCS to the end use in projects.Recent Key Press ReleasesFriday, April 20, 2012 – SunSi to Acquire Controlling Interest in TransPacific Energy, Inc.- NEW YORK, April 20, 2012 (GLOBE NEWSWIRE) -- SunSi Energies Inc. ("SunSi") (OTCQB:SSIE), a provider of the specialty chemical trichlorosilane (TCS), today announced it has signeda binding letter of intent to purchase a 51% interest in TransPacific Energy, Inc. (TPE), a
  7. 7. company with offices in Nevada and California that designs and sells energy systems whichmaximize heat recovery and convert waste heat into electrical energy.TransPacific Energy is a high-tech corporation that designs, builds, owns, operates, sells andinstalls proprietary, custom made modular Organic Rankine Cycles (ORC) utilizing multipleenvironmentally sound and low global warming potential refrigerant mixtures. TPEs patentpending technology uses enhanced heat transfer techniques to maximize heat recovery andefficiently convert waste heat directly from industrial processes, thermal solar, geothermalbiomass and landfill as well as other untapped heat into renewable electrical energy. In addition,TPE offers thermal storage technology for applications such as 24/7 electrical energy usingsolar, and geothermal as well as shaving load demand. Please visit www.transpacenergy.comto learn more about TPE technologies.Renewable energy is energy that comes from natural resources which are renewable ornaturally replenished. The renewable energy industry is expected to reach more than $250billion by 2017. Worldwide initiatives and government mandates, including the 2009 AmericanRecovery and Reinvestment Act, are driving the implementation and utilization of renewableand converted sources of energy and fuel.Terms of the Letter of IntentSunSi will acquire 51% of the common stock of TPE and will be paid in full with shares ofSunSis common stock. The transaction is scheduled to close no later than the end of May2012; however, both parties expect the closing to occur within the next few weeks.A Unique and Synergistic TransactionGiven the broad applications of TPEs technology in renewable green energy, SunSi believesthe transaction will be synergistic for both companies for a variety of reasons including, but notlimited to, the following:  New and innovative technology broadens SunSis reach in the green energy renewal arena.  Establishes a U.S. presence and a new revenue stream for SunSi with high gross margin potential in a multi-billion dollar industry.  The size of the market for the reduction of emissions is enormous and SunSi can open doors in China where 70% of the polysilicon producers must comply with government environmental guidelines.  SunSi expects to establish market traction for TPE technology in China; with a $454 billion publically disclosed commitment by the Chinese government earmarked for renewable energy projects.  Both parties can leverage corporate overhead to enable expansion of U.S. operations.  SunSi management has a history of successful M&A and joint venture integration that maximizes the leverage of existing assets and joint opportunities.  Both firms have a history of working with billion dollar entities.  TPEs technology could enable companies to economically meet or exceed stringent environmental guidelines around the world.TPE President, Anne Howard says "TPE is excited to team up with SunSi. SunSi will help TPEbroaden its reach into the international marketplace so that globally more waste and untapped
  8. 8. heat can be recovered, electrical energy produced, and fuel saved thus protecting ourenvironment. This will reduce greenhouse gas emissions and industries carbon footprints. Ourcombined technologies can help stimulate growth in the economic sector both nationally andinternationally.""We are thrilled to join forces with accomplished business and technology leaders such as theteam of TPE," commented Richard St. Julien, Chairman of SunSi Energies, Inc. "SunSi will nowoffer innovative and critical renewable energy conversion systems that efficiently convert wasteheat from industrial processes, solar, geothermal biomass and landfills directly into electricalenergy. This partnership will provide us with U.S. based operations, diversify our customer pool,and position SunSi as a leading renewable energy company with significant technical expertise.Our Chinese operations and customer relationships will open new doors for TPEs products andenable us to significantly increase the value of the entire SunSi--TransPacific Energyenterprise.""TransPacific brings tremendous value to SunSi. We believe there are numerous high growthrevenue generating opportunities to further diversify SunSis current business in the renewableenergy industry and create value for SunSi shareholders," stated David Natan, CEO of SunSiEnergies, Inc.About TransPacific Energy, Inc.TPEs core technology uses proprietary multiple component fluids that are environmentallysound, non-toxic and non-flammable. These mixtures are custom formulated to efficientlycapture and convert heat directly from the heat source at temperatures ranging from 100:oF to1000:oF. TPEs technology currently offers a broader range than other ORC systems which arelimited to narrow temperature ranges between 200:o F and 300:o F. Other ORCs must use abinary system or secondary heat transfer loops to recover waste heat at higher temperaturesthat significantly lower heat recovery efficiency, output power, and increase cost. TPEsadvanced technology does not use binary loops and also employs either air-cooled or water-cooled condensers as well as direct heat exchangers for heat recovery,www.transpacenergy.comFurthermore other abundant untapped energy sources exist that potentially could produceelectricity using TPEs ORCs. These sources include solar, geothermal, ocean, landfill andbiomass.Monday, March 26, 2012 - SunSi Energies CEO, David Natan Featured – Provides Company Overview and Strategy Update - SunSi EnergiesInc., a provider of the specialty chemical trichlorosilane ("TCS") to polysilicon makers in thesolar industry, announced today that David Natan, Chief Executive Officer, provided a companyoverview and strategy update featured on SmallCapVoice.comDavid Natan, SunSis Chief Executive Officer stated, "We are pleased to provide a companyupdate and discuss our expanded strategy in the solar value chain. We are confident that thesuccessful implementation of our strategy will advance our overall presence in the solar marketwhile complementing our core business in China."The recording of the interview is now available at:
  9. 9. Monday, February 13, 2012 - Zacks upgrades SunSi Energies to Neutral – By Zacks EquityResearch - Steven Ralston, CFA - The stock of SunSi Energies (SSIE) has been underconsiderable pressure for the last two weeks as investors digested the impact of the results ofthe second fiscal quarter and the news of the temporary shut down of production at thecompany’s Baokai and Wendeng facilities. However, the recent price decline of SunSi’s stocknow sufficiently discounts the expected revenue decline due to the oversupply in thephotovoltaic supply chain. With polysilicon prices having rebounded from $27/kg and stabilizingin the $28/kg to $31/kg range in northeast Asia, the plants are expected to resume productionthis month.The Chinese government has proposed a policy to support the polysilicon industry byencouraging mergers and acquisitions of companies without economies of scale and othercompetitive advantages. Therefore, it is expected that large Chinese solar companies willsurvive and receive support from Chinese Banks. In addition, the Chinese government isexpected to promote addition polysilicon capacity through the installation of 3 gigawatts of newsolar capacity in 2012.Polysilicon manufacturers elsewhere in the world are expected to resume production aftertemporarily shutting down all or part of their capacity in order to alleviate pressure on polysiliconprices. Nevertheless, the outlook for the first half of 2012 is still uncertain for polysilicon withspot prices in Asia expected to remain depressed (below $32 per kg).Contact:SunSi Energies, Inc.245 Park Avenue 24th FloorNew York, New York 10167646-205-0291 Officeinfo@sunsienergies.comInvestor Relations:Jeff RamsonProActive Capital Resources Group, LLCjramson@proactivecapitalgroup.comwww.proactivecrg.com646-863-6893NOTE: To receive future updates delivered to your email regarding SunSi Energies, Inc.(OTCQB: SSIE) and other companies covered by The Green Baron Report, please and click any “Join Now” icon.IMPORTANT NOTICE AND DISCLAIMER:The purpose of this material is to provide coverage and publicity for the companies, products or services. Theinformation provided is not intended for distribution to, or use by, any person or entity in any jurisdiction or countrywhere such distribution or use would be contrary to law or regulation or which would subject us to any registrationrequirement within such jurisdiction or country. Verify all claims and do your own due diligence. This material is not asolicitation or recommendation to buy, sell or hold securities and does not provide an analysis of the financial positionof the company. We recommend you use the information provided as an initial starting point for conducting your ownresearch on these companies in order to determine your own personal opinion before investing. All information
  10. 10. concerning these companies contained herein should be verified independently by an attorney and/or an independentlicensed securities analyst. We are not offering securities for sale. All statements and opinions contained in thismaterial are the sole opinion of the authors and are subject to change without notice. We are not liable for anyinvestment decisions by our readers. Readers should independently investigate and fully understand all risks beforeinvesting. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser orbroker prior to completing any such purchase or sale decision. We are not registered investment advisers, or broker-dealers, or members of any financial regulatory bodies. The information contained in this material is provided as aninformation service only. The accuracy or completeness of the information is not warranted and is only as reliable asthe sources from which it was obtained. We disclaim any and all liability as to the completeness or accuracy of theinformation and for any omissions of material facts. This advertisement may contain hyper links to web sites operatedby third parties other than us. Such hyper links are provided for the readers reference and convenience only. We arenot responsible for the reliability of these external sites nor are we responsible for any of the contents, advertising,products, or other materials on such external sites. Our inclusion of hyper links to such web sites does not imply anyendorsement of the material on such web sites or any association with their operators. Under no circumstances shallwe be held responsible or liable, directly or indirectly, for any loss or damage caused or alleged to have been causedin connection with the use of or reliance on any content, goods, or services available on such external site. We mayrefer to other sources of information, or other commentary. We intend to offer these items to readers as additionalsources of information only. It should be understood that there is no guarantee past performance will be indicative offuture results. In order to be in full compliance with the U.S. Securities Act of 1933, Section 17(b), EvergreenMarketing, Inc. is receiving U.S.$5,000 and 8,000 shares of restricted 144 common shares of SunSi Energies (SSIE)for the distribution of this report and coverage of SSIE as a Green Baron upgraded “Stock Pick” beginning in May2012. Previously, Evergreen Marketing received $10,000 for its coverage as a “Stock Alert” beginning in June 2011.Since we are receiving compensation and may hold stock in the company there may be an inherent conflict of interestin our statements and opinions and such statements and opinions cannot be considered independent. We maybenefit from any increase in share price of the company. We may sell our shares at any time, without notice, be thatbefore, during or immediately after the release of this material. Furthermore, our associates and/or employees and/orprincipals may have stock positions in profiled companies purchased in the open market or in private transactions.These positions may be liquidated, without prior notification, even after we have made positive comments regardingthese companies. It should be understood that any price targets and/or projections mentioned are solely opinions andshould not be taken as suggested holding periods. The receipt of this information constitutes your acceptance ofthese terms and conditions. Reading this material shall not create under any circumstances an offer to buy or sellstock in any company profiled. Nor shall it create any principal-agent relationship between the reader and us.Information within this material contains "forward looking" statements within the meaning of Section 27(a) of the U.S.Securities Act of 1933 and Section 21(e) of the U.S. Securities Exchange Act of 1934. Any statements that express orinvolve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals,assumptions or future events or performance are not statements of historical facts and may be forward lookingstatements. Forward looking statements are based on expectations, estimates and projections at the time thestatements are made that involve a number of risks and uncertainties which could cause actual results or events todiffer materially from those presently anticipated. Forward looking statements may be identified through the use ofwords such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could ormight occur.