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Our clean-energy analyst recently identified Synthesis Energy Systems (NASDAQ:SYMX) as a gem of an investment. The company has proprietary, unparalleled technology which enables it to take low cost, low grade coal and convert it into natural gas. The business model is very exciting as the input costs are only $4-$4.50 per BTU and then sell in the Chinese market for $10-$15 per BTU. As Tobin Smith of said in an interview with CEO Robert Rigdon, "This is a billion dollar opportunity."

It is in fact a billion dollar opportunity, and yet SYMX has a market cap of approximately $84 million. Other investors, particularly those who understand the Chinese market and the growing demand for natural gas, have realized this opportunity and are either partnering with SYMX or making strategic investments in the company. Most notable is the strategic investment by China Energy of $83.8 million, nearly equivalent to the market cap of SYMX. This is a huge investment which will allow SYMX to continue to expand its manufacturing capabilities and market presence in China. On December 7th, SYMX announced that this is on track for completion.

We strongly believe that SYMX is a compelling buy as it is trading at only $1.60 per share after seeing a high in the mid $4 range earlier this year after announcement of the China Energy Investment into SYMX. We strongly believe that this stock could trade in the $4 range again within the next 12 months.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.