Thursday, July 12, 2007

Flywheel Stocks: Perpetual Motion Machines?


There are many types of alternative energy stocks such as solar energy stocks, wind energy stocks, fuel cell stocks and ethanol stocks. However, there is a fairly obscure type of alternative energy called flywheel storage energy. Flywheels are rotating disks that are used to store kinetic energy. Flywheels have recently become popular in the Uninterruptible Power Supply [UPS] business for short term power outages and research has been done into its use for automobiles. There are several advantages to the flywheel technology over the lead-acid batteries in UPS’s, including higher efficiency, a longer lifespan, and a smaller size, not to mention the reduction in safety and disposal issues that exist with the lead-acid battery UPS's.

Active Power Inc. (ACPW) which trades on NASDAQ, was founded in 1992 and is based in Austin, Texas. They manufacture and sell power products that are battery free such as their CleanSource UPS, a battery-free uninterruptible power supply utilizing flywheel technology. The company has generated negative earnings but a 7.3% increase in quarterly revenues year over year, with a price sales ratio of 3.82. The company is debt free.

Beacon Power Corp. (BCON), which trades on NASDAQ, was founded in 1997 and is based in Wilmington, Massachusetts. Their primary product is Smart Energy matrix, a flywheel-based energy storage system used by electrical utilities for electric grid regulation. The company has had negative earnings but reported a 36.1% increase in quarterly revenues year over year. This company is debt-free and has a price sales ratio of 125.

RailPower Tech Corp. (RLPPF.PK) is a Canadian based company involved in the development, construction, marketing and sales of specialized energy technology systems for transportation and power generation. Although earnings have been negative, revenues have gone from C$ 2.259 million in 2006 to C$ 25.120 million in 2007, an increase of over 1000%, for the quarter ending March 31.

SatCon Technology Corporation (SATC), which trades on NASDAQ, manufactures and markets technologies and products for electrical power control and conversion, including Rotary Uninterruptible Power Supplies. The company has had negative earnings but a 1.96 P/S ratio. Quarterly revenues were up 9.3%.

Boeing Co. (BA) have been involved in the flywheel business also. Although it has been a small portion of the company's business, they have been working on superconducting flywheel energy storage systems. The P/E is 33, the PEG is 1.16, and the yield is 1.4%.

Picture is from NASA and shows a Magnetically Levitated Flywheel.

Author does not own any of the above.

2 comments:

JJ2000426 said...

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Look at this perfect chart

Bineet said...

machines are many types,electronic machines,diesel machines etc.that's very impotent for our

life.EOT Cranes every work do with

machines.Today's modern vending machines are equipped with sensors that detect when product

passes to the receiving drawer. Even the snack machines have these now. It's a wonder that

someone didn't figure that out earlier.