NOEC Chinese Agricultural Stock

A very quick note today on New Oriental Energy & Chem Corp. ( NOEC - Nasdaq).

With the recent run in COIN (the stock has run-up from 10 to 16 in a few weeks), I looked for other companies that are in the same sector and have a very small float.

NOEC is a sister-play, which has not yet been discovered. The float is only 5.14 million shares, with the short interest being 432,000 shares (about 9%).

Notice that the short interest has been increasing and right now is at an all-time high:

A brief description of NOEC: The company engaged in the manufacture and distribution of fertilizer and chemical products. The products are distributed to markets in the Peoples Republic of China. The Companys primary business is the manufacture and sale of urea, a chemical used as fertilizer for crops and in certain manufacturing processes, including the manufacture of resin, plastic and medicine. NOEC also produces and sells methanol. The Companys other products include Ammonium Hydrogen Carbonate, which can be used as a fertilizer for crops and in the pharmaceutical and food industries. In addition, another product NOEC has developed Dimethyl Ether (DME). DME has a variety of industrial applications in the production of pesticides, cosmetics and as a refrigerant.

Earlier today, NOEC put out a press release that they are moving to the NASDAQ Global Market as of March 6. This should improve liquidity and visibility.

The chart is extremely oversold but the MACD and Stochastics are starting to rise:

I think that NOEC should not have a problem reaching $6.70, which would be a 20%+ move from here. If that resistance can be broken, $8.50 is the next area of resistance.

I have bought some shares earlier today awww.thebulltrader.comr own due diligence before making any investment.

If everything falls into place, NOEC could replicate the quick & large move that COIN has had.