Stock Alert for Ener1 Inc. (HEV)
  • Jumpstart; Ener1 Surges at Opening Bell on Triple-digit Revenue Growth, Narrowed Losses
  • Stock Alert for Ener1 Inc. (HEV)
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    Stock Alert for Ener1 Inc. (HEV)

    Ener1 Inc. (HEV), an energy technology company, develops compact, lithium-ion-powered battery solutions for the transportation, utility grid storage and consumer markets. It has more than 700 employees with manufacturing locations in the United States and Korea. The Company also develops commercial fuel cell products, nanotechnology-based materials and manufacturing processes. In collaboration with strategic partner and electric vehicle manufacturer THINK, the Company also manufactures electric vehicle drive train products.

    HEV was founded in 1985 and is headquartered in New York, New York.

    Share Statistics (18-Jan-11) FY

    2008

    FY

    2009

    %

    Chg

    Q3

    2009

    Q3

    2010

    %

    Chg

    Symbol HEV Revenue, $Mn 6.85 34.80 408.0% 8.12 17.26 112.6%
    Current price $4.24 Gross marg. 32.0% 11.7% -63.4% 5.2% 12.2% 134.6%
    52wk Range: $2.75-$5.90 Oper. margin -142.1% -61.6%
    Avg Vol (3m): 565,305 Net margin -765.8% -146.6% -80.9% -195.1% -156.1% -20.0%
    Market Cap. 689.73M
    Shares Outstanding 162.67M EPS, $ -0.51 -0.45 -11.8% -0.14 -0.18 28.6%

    Source: Reuters.com, SEC Filings.

    Financial Summary

    For the third quarter ended September 30, 2010, HEV reported net sales of $17.3 million, an increase of 113% over net sales of $8.1 million in the third quarter of 2009. Net sales were $44.3 million for the nine months ended September 30, 2010, an increase of 86% over net sales of $23.9 million in the prior year nine-month period.

    Basic and diluted net loss per share was $0.18 in the third quarter of 2010 compared to $0.14 in the third quarter of 2009. Weighted basic and diluted shares outstanding were 148.6 million in the third quarter of 2010 compared to basic shares of 131.8 million and fully diluted shares of 135.95 million in the second quarter of 2010.

    Source: Ener1 Inc.


    Financial Strength (18-Jan-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.26 2.65 1.28 0.65
    Current Ratio (MRQ) 1.62 3.18 1.61 0.96
    LT Debt to Equity (MRQ) 26.73 30.81 54.98 122.10
    Total Debt to Equity (MRQ) 45.42 53.17 73.69 180.83
    Interest Coverage (TTM) -21.21 0.06 0.16 13.54

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 12 polled investment analysts. Against the Ener1 Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 5 3 4 0 0 0
    4 weeks ago 5 3 4 0 0 0
    2 months ago 5 3 4 0 0 0
    3 months ago 5 3 4 0 0 0
    Last year 4 1 2 0 0 0

    The 10 analysts offering 12-month price targets for ENER have a median target of 5.75, with a high estimate of 9.00 and a low estimate of 3.50. The median estimate represents a 56.25% increase from the last price of 3.68.

    Source: markets.ft.com

    Consensus Estimates Analysis


    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Mar-11 7 41.50 54.50 28.82 39.59
    Quarter Ending Jun-11 7 61.51 74.21 49.41 56.70
    Year Ending Dec-11 10 211.53 268.82 149.24 258.82
    EARNINGS (per share)
    Quarter Ending Mar-11 8 -0.08 -0.05 -0.12 -0.02
    Quarter Ending Jun-11 8 -0.06 -0.03 -0.09 -0.01
    Year Ending Dec-11 10 -0.25 -0.15 -0.38 -0.15

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=HEV.O


    Investment Highlights

    HEV operates mainly in the business of designing, developing and manufacturing high-performance, rechargeable lithium-ion batteries and battery systems for energy storage.  Its end markets include transportation, stationary power, military applications and small-cell markets.  In the transportation markets, the Company is developing systems to power the next generation of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs). This technology is also being developed for other transportation markets including buses and trucks as well as alternative transportation vehicles.  HEV’s Enertech subsidiary also specializes in small-cell technology and manufactures electrodes for other battery manufacturers, commercial battery packs, prismatic cells, lithium polymer batteries and large format cells for automotive applications. It also conducts research on and develops fuel cells and nano coating processes.

    The Company has three operating segments: battery, fuel cell and nanotechnology. Its battery business develops and markets advanced lithium-ion batteries. The fuel cell business develops and markets fuel cells and fuel cell systems. The nanotechnology business develops nanotechnology related manufacturing processes and materials.

    HEV signed a $40 million supply deal with a wholly owned subsidiary of the Federal Grid Company for a bulk energy storage program during the third quarter of 2010. The Company said the systems will be delivered and installed at the end of the first quarter in 2011 and commissioned in the second quarter of 2011. It stated that $36 million of revenue is expected to be recognized in the first half of 2011 and $4 million in the succeeding year.

    The third quarter of 2010 marked HEV’s fifth quarter of sequential revenue growth.  The Company has successfully launched commercial products in the transportation, grid energy storage and small format business verticals.  It also announced the completion of its targeted capital raise of $160 million in 2010 through a combination of private and strategic investments. This included $24 million in equity from HEV, $55 million of senior unsecured notes to certain investment funds, and $10 million in senior convertible notes from strategic partner ITOCHU Corp. during the third quarter. HEV said these funds allow the Company to expand its global manufacturing footprint to 260 megawatt hour (MWh) of capacity.

    HEV chairman and CEO Charles Gassenheimer stated that the Company expects to grow revenues to between $600 million and $800 million in 2013, with a shifting bias towards the heavy-duty bus markets, and grid energy storage applications.”

    Recent News

    Shares in HEV surged as much as 14% on heavy volume yesterday on news it has teamed up with Wanxiang Electric Vehicle Group Ltd. to manufacture electric car batteries for China. Wanxiang Electric Vehicle is a division of leading Chinese auto parts maker Wanxiang, China’s largest tier-one auto parts supplier.

    The joint venture, called Zhejiang Wanxiang Ener1 Power System, will produce battery systems for several of Wanxiang’s existing light- and heavy-duty auto and power grid customers for delivery this year, the Company said in a statement. Wanxiang, which owns a 60% equity stake in the joint venture, will provide its 553,000 square-foot factory in Hangzhou, China for the use of manufacturing the batteries, and will also take advantage of existing relationships it has with customers such as State Grid, SAIC Motor, Dongfeng Motor, Guangzhou Auto and Yutong.  HEV, which owns the remaining 40%, will provide intellectual property and engineering, manufacturing and technical expertise.

    “This joint venture gives us scalability by leveraging an existing manufacturing facility and an established broad customer base,”  Gassenheimer said in a statement. “Applying our advanced battery technology will enable us to hit the ground running in serving what is potentially the largest advanced battery market in the world.”

    The agreement comes as China sets an annual production goal of 500,000 hybrid or all-electric cars and buses by 2012.

    Last week, HEV said it has achieved a significant advance in its growing relationship with Volvo Cars when Volvo President and CEO Stefan Jacoby unveiled a crash-tested C30 Electric designed with HEV’s EnerDel battery at the North American International Auto Show – the first time that a crash-tested electric car has been displayed in public.  Jacoby confirmed that for this year, a test fleet of C30 Electric cars will go on the road in the United States following recent announcements of fleets in Europe and Asia.

    Early this month, HEV announced the sale of $25 million of senior unsecured notes, together with shares of common stock and warrants, to certain investors.  The Company said it will use the proceeds from the sale primarily to continue building out production capacity in the United States and for working capital to support existing projects with customers in the grid energy storage and transportation sectors, along with funds from an existing grant from the U.S. Department of Energy.

    Source: http://www.ener1.com

    Technical Analysis

    Source: http://stockcharts.com

    Friday, HEV closed above its 20-day moving average. This is generally considered to be an indication of a bullish trend.

    HEV’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    HEV’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Jan18-2011 symbol Share, $ $ Mn 2010 2011 2010 2011
    Ultralife Corp. ULBI 7.10 122.35M 64.55 14.79 0.68 0.61
    Johnson Controls Inc. JCI 40.64 27.41B 16.06 13.55 0.74 0.68
    Valence Technology Inc. VLNC 1.70 245.84M n/a n/a 5.26 2.68
    A123 Systems Inc. AONE 10.51 1.10B n/a n/a 11.00 5.02
    Industrial Electrical Equipment Median 19.21 n/a 1.44 n/a
    Ener1 Inc. HEV 4.24 689.73M n/a n/a 10.12 3.26

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares Transaction
    Purchases n/a 0
    Sales 351,863 2
    Net Shares Purchased (Sold) (351,863) 2
    Total Insider Shares Held 87.11M n/a
    % Net Shares Purchased (Sold) (0.4%) n/a

    Net Institutional Purchases — Prior Qtr to Latest Qtr
    Shares
    Net Shares Purchased (Sold) (8,194,090)
    % Change in Institutional Shares Held (29.01%)

    Source: Yahoo Finance

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