Zenergy Int’l Inc. (OTCPK: ZENG)

Zenergy Int’l Inc. (ZENG) is a development stage company engaged in the development and acquisition of biofuel sites, including constructing, acquiring existing facilities and operating fuel-grade biodiesel and ethanol plants. As an alternative energy company, ZENG focuses on fuel derived from plants, specifically sugarcane and sorghum-whose byproduct is ethanol-as well as derived from low-cost vegetable oils for the production of biodiesel. The Company intends to develop reliable low cost feedstock by working with available low cost bio-materials and local farmers. These plantations will be conveniently located near processing plants or transportation hubs adjacent to processing plants.

The Company was founded in 2006 and is based in Chicago, Illinois.

Source: Reuters.com, SEC Filings

Financial Summary

ZENG is a holding company presently in development. No revenue is reported.

Analyst Consensus

No analysts cover ZENG at this stage of development.

Investment Highlights

ZENG is committed to capitalizing on the continued growing demand for global biofuels, focusing on automotive fuel derived from plants or their byproducts. The Company intends to produce ethanol and other chemicals by using sugarcane, sorghum and bio-waste as the raw materials. It also intends to produce biodiesel by using low cost vegetable oils. ZENG is committed to capitalizing on the continued growing demand for global biofuels. The Company intends to develop reliable low cost feedstock by working with available low cost bio-materials and local farmers. According to the Company, these plantations will be conveniently located near processing plants or transportation hubs adjacent to processing plants. The Company plans to work closely with farmers to optimize:

• Desirable feedstock crops
• Their farming methods in order to increase yield
• Transportation efficiencies and logistics

The Company also offers consulting services to large-capitalized companies such as BP, Chevron, Citgo, Exxon, Shell and Sunoco. ZENG intends to manufacture the next generation biofuels to satisfy the growing demand for alternatives to fossil fuels.

Just recently, the Company announced it has closed on the acquisition of Greenlight Biofuels Ltd. and its assets for total consideration of about $1.5 million. According to the report, this acquisition considerably expands the revenue generating capability of the Company by way of providing the resources to create the biodiesel planned as well as the existing client base purchasing the fuel. ZENG, in its acquisition of Greenlight Biofuels Ltd., has taken ownership of the property situated on 40 acres of productive land, facilitating the biofuel plant currently in production in Littlefield, Texas.

Late last month, the Company announced it has secured feedstock to continue operations and facilitate extensive production in Littlefield, Texas. The Company expects to reach its goal of full-scale production in Littlefield by second quarter next year.

The Company has also appointed Gurminder Singh, recognized authority on finance, enterprise, business and technology development, to their board of advisors, and is expected to strengthen the Company through his acquired wisdom and visionary focus on green, clean, environmental and water technologies.

Market Outlook – According to a report by the Energy Information Administration (EIA), the United States’ biofuels production was 500,000 barrels per day in 2007, but is expected to reach 2.3 barrels per day in 2030, with ethanol production growing to 1.9 million barrels by 2030. The agency projects that 60% of new light-duty vehicles sold in the United States will run on E85, flex fuel or hybrid fuels, to meet future requirements of the Renewable Fuel Standard (RFS). Globally, the biofuels market is expected to reach $280 billion by 2022, with the expected long-term and rapid growth in biofuels consumption. This is according to the recent biofuels industry report issued by Pike Research.

The growth of the biofuel industry is fuelled by the increasing concern over global warming and the security of mineral fuel supplies. An environmentally conscious company like ZENG intends to emerge as a solution provider to meet the developing demands of an environmentally changing society, providing profitable ethanol, biodiesel and next generation biofuels.

Source: http://www.zenergyintl.com/

Technical Analysis

ZENG is trading above its 13-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

The MACD for ZENG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

ZENG’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, ZENG is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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