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    Stock Alert for Evergreen Energy Inc. (EEE)

    Evergreen Energy Inc.  (EEE) is a business intelligence and environmental solutions company dedicated to the development of accurate and reliable technologies. Its products are focused on helping customers manage the costs and operational issues that they face.  EEE’s patented clean coal technology, K-Fuel, significantly improves the performance of low-rank sub-bituminous and brown coals and lignite. The process yields higher efficiency levels, which are variable depending on the type of coal processed, by applying heat and pressure to low-rank coals to reduce moisture.

    Share Statistics (28-Nov-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol EEE Revenue, $Mn 0.42 0.40 -4.8% 0.10 0.10 0.0%
    Current price $0.46 Gross marg. 100.0% 100.0% 0.0% 100.0% 100.0% 0.0%
    52wk Range: $0.13-$4.98 Oper. margin -5020.1% 2973.0%
    Avg Vol (3m): 475,953 Net margin -13485.7% -5087.5% -62.3% -4700.0% 5950.0% -226.6%
    Market Cap. n/a
    Shares Outstanding n/a EPS, $ -2.62 -1.01 -61.5% -0.11 -0.06 -45.5%

    Source:, SEC Filings.

    Investment Highlights

    Shares of EEE rallied 119% to close at $0.46 in Monday’s trade, recovering from last week’s drop.  Shares traded lower following news a prospective buyer of its K-Fuel® business withdrew its offer.  The stock saw trading volume hit 15.65 million yesterday, nearly six times the 10-day average. EEE has so far reached a 52-week high of $4.98 and a 52-week low of $0.13.

    Shares of EEE have gained 43.8% in the last five days, though the stock dropped 48.3% in the last month.  Year-to-date, the stock is down 39.4%.

    In a release on November 23, the Colorado-based green technology developer reported that Stanhill Capital Partners unexpectedly informed the Company that it was withdrawing its offer and terminating further discussions in connection with any potential transaction for the K-Fuel® business or the share capital of the company.

    EEE announced it received an unsolicited offer from Stanhill on October 4.

    A special committee of the Company’s board of directors and its financial advisor, Dahlman Rose & Co.  LLC, are said to be continuing to assess strategic alternatives for the Company.


    Financial Summary

    EEE reported revenues of $100 K for the second quarter of 2011, compared to revenuees of $103 K for the comparable quarter last year.

    The Company realized net income attributable to common shareholders of $6.0 million, or $0.21 per share, for the latest quarter, which included a $3.1 million non-cash gain on the fair value adjustment of embedded derivatives and a $10.2 million non-cash gain on early extinguishment of debt related to its 2007 Note settlement. For the second quarter of 2010, net loss was $4.7 million, or $0.33 per share, and included a $2.3 million non-cash gain on the fair value adjustment of embedded derivatives and a $2.3 million non-cash loss on the early extinguishment of the 2009 Notes.

    EEE’s cash and cash equivalents at June 30, 2011, was $4.4 million, compared to $7.9 million at March 31, 2011.


    Financial Strength (28-Nov-2011)




    S&P 500

    Quick Ratio (MRQ) 2.34 1.32 0.77
    Current Ratio (MRQ) 1.06 2.71 1.67 1.14
    LT Debt to Equity (MRQ) 0.00 23.99 53.69 108.74
    Total Debt to Equity (MRQ) 92.04 35.61 77.95 146.03
    Interest Coverage (TTM) 0.68 0.37 26.85

    Source:, SEC Filings.

    Technical Analysis


    EEE is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    The MACD for EEE currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Nov28-2011 Symbol Share, $ $ Mn 2011 2012 2011 2012
    Peabody Energy Corp. BTU 34.43 9.33B 8.61 6.57 1.15 0.97
    Alpha Natural Resources Inc. ANR 20.29 4.46B 9.75 10.79 0.62 0.51
    Electric Utilities Median       14.09 n/a 1.43 n/a
    Evergreen Energy Inc. EEE 0.46 n/a n/a n/a n/a n/a

    Source: Thomson Financial

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