Stock Alert for Beacon Power Corporation (BCON)(D*)
  • Stock Alert for Beacon Power Corp. (BCON)(D*)
  • Stock Alert for Beacon Power Corportation (BCON)(D*)
  • " />

    Stock Alert for Beacon Power Corporation (BCON)(D*)

    * Financial status indicator is deficient: Issuer failed to meet NASDAQ continued listing requirements.

    Beacon Power Corp. is a development stage company operating with its subsidiaries to design, manufacture and operate flywheel-based energy storage systems. The focus of its research and development has been to establish flywheel-based energy storage technologies that can provide energy solutions for the worldwide electricity grid.

    Beacon Power was founded in 1997 and is headquartered in Tyngsboro, Massachusetts.

    Share Statistics (Aug-5-10) FY

    2007

    FY

    2008

    %

    Chg

    Q4 2008 Q4 2009 %

    Chg

    Symbol BCON Revenue, $Mn 1.39M 0.07M 95.0% 0.02M 0.30M 1400%
    Current price $0.34 Gross marg. 10.2% 22.1% 116.7% -100.0% -236.7% 136.7%
    52wk Range: $1.00-0.28 Oper. margin -980.5% 35057% 3475% -35950% -1533% 95.7%
    Avg Vol (3m): 1,113,200 Net margin -929.5% -33671% 3522% -36150% -1553% 95.7%
    Market Cap. 63.03M
    Shares Outst. 190.2M EPS, $ -0.18 -0.26 44.4% -0.07 -0.03 57.1%

    Source: Reuters.com, SEC Filings.

    Financial Summary

    For the first quarter of 2010, BCON reported revenue of $235,000 and a net loss of $5.5 million, or ($0.03) per share, compared to revenue of $111,000 and a net loss of $5.5 million, or ($0.05) per share, in the first quarter of 2009. Gross profit for the first quarter of 2010 was $52,000, as compared to a gross loss of $61,000 during the first quarter of 2009.

    During the first quarters of 2010 and 2009, the Company earned revenue primarily from frequency regulation service provided through an ISO New England pilot program begun in November 2008, as well as from the Company’s research and development contracts. The Company had 3 MW of frequency regulation capacity in service during the first quarter of 2010, as compared to 1 MW in the first quarter of 2009. The Company’s frequency regulation revenue increased by approximately $79,000, or 123%, over the first quarter of 2009. The increase in revenue was limited due to lower average clearing prices from ISO-NE for frequency regulation during the first quarter of 2010, as well as the fact that ISO-NE currently does not include so-called “opportunity cost” in its calculation of its regular clearing price. Inclusion of that factor is expected to increase future revenues received by BCON from ISO-NE by approximately one-third. Several other ISOs already include this factor in their pricing structure.

    BCON’s average gross margin on frequency regulation services during the first quarter of 2010 was 27%, as opposed to a negative gross margin of 103% for the first quarter of 2009. This significant improvement was primarily driven by a change in the ISO-NE settlement structure that enabled the Company to net its energy consumption and pay the wholesale rate for net energy usage. However, because the pilot units are connected to the New England grid through a distribution line rather than a transmission line, the Company continues to incur retail transmission and distribution (T&D) charges. These charges represented approximately $75,000, or 72%, of the Company’s total cost of energy during the first quarter of 2010. Pro forma gross margin for frequency regulation services for the first quarter of 2010, calculated without T&D charges, would have been approximately 80%. The Company will connect to the grid at transmission level in Stephentown, NY, and therefore will not incur T&D charges.

    For the first quarter ended March 31, 2010, operations and maintenance expenses increased by $190,000, or 24%, compared to the equivalent period in 2009. The increase was due primarily to occupancy expenses related to building maintenance. Research and development expenses decreased by $120,000, or 5%, in comparison to the equivalent period in 2009, due primarily to decreased spending on R&D material.

    Selling, general and administrative expenses were essentially flat at $1.9 million for the first quarter of 2010 and 2009, respectively. Depreciation expense in the first quarter of 2010 increased by $105,000 compared to the first quarter of 2009. This increase is primarily from the capitalization of flywheel and related equipment that were placed into service in the third and fourth quarters of 2009, as well as machinery and equipment purchased in the fourth quarter of 2009.

    At March 31, 2010, the Company had $17.5 million in cash and cash equivalents as compared to $5.3 million at March 31, 2009, and working capital of $13.9 million at March 31, 2010 as compared to $1.7 million at March 31, 2009. Approximately $12 million of the cash on hand is expected to be contributed to the Stephentown project upon closing the DOE loan and is not expected to be available for general corporate operating purposes.

    Financial Strength (August-4-2010) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 3.78 0.21 1.20 0.67
    Current Ratio (MRQ) 3.78 0.28 1.48 0.80
    Long-Term Debt to Equity(MRQ) 9.16 6.93 55.92 116.92
    Total Debt to Equity (MRQ) 10.77 10.28 77.73 175.78

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast amongst 1 polled investment analysts. Against the Beacon Power Corp company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 1 0 0 0 0 1
    4 weeks ago 1 0 0 0 0 1
    2 months ago 1 0 0 0 0 1
    3 months ago 1 0 0 0 0 1
    Last year 0 0 2 0 0 0

    The one analyst offering a 12 month price target expects BCON share price to rise to 1.10 in the next year from the last price of 0.35.

    Source: www.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Sep-10 1 0.50 0.50 0.50 0.70
    Quarter Ending Dec-10 1 1.20 1.20 1.20 2.00
    Year Ending Dec-10 1 2.60 2.60 2.60 7.29
    Year Ending Dec-11 1 70.80 70.80 70.80
    EARNINGS (per share)
    Quarter Ending Sep-10 1 -0.03 -0.03 -0.03 -0.03
    Quarter Ending Dec-10 1 -0.03 -0.03 -0.03 -0.02
    Year Ending Dec-10 1 -0.11 -0.11 -0.11 -0.12
    Year Ending Dec-11 1 -0.03 -0.03 -0.03

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=BCON.W

    Investment Highlights

    BCON will release its financial results for the quarter ended June 30, 2010, on August 9, 2010, prior to the opening of the market, and the Company will host a conference call at 10:00 am Eastern Time that day. During the call, Bill Capp, BCON president and CEO, and Jim Spiezio, CFO, will review the Company’s operations and results, followed by a question and answer session.

    Those interested in hearing management’s discussion can join the call by dialing (857) 350-1684 and entering participant access code 69594434 when prompted. A live webcast of the call will also be available via the Company’s Web site, at www.beaconpower.com. Please connect at least 15 minutes prior to the webcast to ensure adequate time for any software download that may be needed.

    A replay of the event will be available approximately two hours after its completion, and for seven days following the call, by dialing (617) 801-6888 and entering access code 29830030 when prompted. The webcast will also be archived at www.beaconpower.com.

    BCON is a direct beneficiary of a newly passed law in New York State that specifically exempts flywheel-based energy storage facilities of less than 80 megawatts (MW) from New York Public Service Commission (PSC) jurisdiction. Governor David A. Paterson signed the legislation into law on July 21, 2010.

    The Company is currently building the world’s first 20 MW flywheel-based energy storage plant in Stephentown, New York, which will provide the state with an essential grid-stabilizing service known as frequency regulation. All 20 MW of the Stephentown plant are on schedule to be completed by the end March 2011, with 4 MW operational before the end of this year. More information and updates on the plant’s progress are available at www.beaconpower.com.

    The law is based on New York’s energy storage DPS departmental bill (S.7145 Aubertine/A.10216 Cahill), which added kinetic energy storage devices — specifically flywheels and compressed air storage — to the alternative energy production facility definition, thereby exempting those projects of less than 80 MW capacity from the state’s PSC jurisdiction. Prior to this new statute, Beacon was required to apply for (and had obtained) PSC approval via a certificate of public convenience and necessity, or CPCN, for the Stephentown facility. The new exemption is expected to relieve Beacon from the regulatory burden of having to provide the PSC with periodic updates or obtain PSC approval of facility documents for its Stephentown regulation plant. It will also eliminate entirely the need for Beacon to apply for additional CPCNs, as would otherwise have been required for its planned Glenville, New York, regulation plant, currently being developed.

    Source: http://www.beaconpower.com/

    Technical Analysis

    Source: http://stockcharts.com

    BCON 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.

    BCON is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

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

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Aug5-2010 symbol Share, $ $ Mn 2010 2011 2010 2011
    SatCon Technology Corp. SATC 3.74 266.72M n/a n/a 4.62 n/a
    American Electric Tech. Inc. AETI 2.28 17.66M n/a n/a 0.34 n/a
    Comverge Inc. COMV 8.51 213.95M n/a n/a 2.38 n/a
    Electric Utilities Median 166.11M n/a n/a 2.44 n/a
    Beacon Power Corp. BCON 0.35 65.44M n/a n/a 67.91 n/a

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHSE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares Transaction
    Purchases 50,000 1
    Sales n/a 0
    Net Shares Purchased (Sold) 50,000 1
    Total Insider Shares Held 9.61M n/a
    % Net Shares Purchased (Sold) 0.5% n/a

    Net Institutional Purchases — Prior Qtr to Latest Qtr
    Shares
    Net Shares Purchased (Sold) (13,183,500)
    % Change in Institutional Shares Held (172.51%)

    Source: Yahoo Finance

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *