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






    Q4 2008 Q4 2009 %


    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:, 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:, 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.


    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


    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 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

    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

    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.


    Technical Analysis


    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


    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
    Net Shares Purchased (Sold) (13,183,500)
    % Change in Institutional Shares Held (172.51%)

    Source: Yahoo Finance

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