Alternative Energy Trade Option: Energy Conversion Devices Inc. (ENER) Review
  • Stock Alert for Energy Conversion Devices Inc. (ENER)
  • Renewable Energy Trade Option: Energy Conversion Devices Review
  • " />

    Stock Alert for Energy Conversion Devices Inc. (ENER)

    Energy Conversion Devices Inc. (ENER) manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. It also pioneers other alternative technologies – including being the inventor and developer of NiMH to licensees worldwide and a new type of nonvolatile digital memory technology that is significantly faster and less expensive, ideal for use in a variety of applications, including cell phones, digital cameras and personal computers.  Distributed globally under the UNI-SOLAR brand, the Company’s solar products are ideally suited for cost-effective solutions for roofing applications because they are lightweight, durable, flexible, can be integrated directly with building materials, and generate more energy in real-world conditions.

    Share Statistics (12-Jan-12)   FY

    2010

    FY

    2011

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol ENER Revenue, $Mn 254.42 232.55 -8.6% 65.34 21.96 -66.4%
    Current price $0.57 Gross marg. 3.3% 9.2% 178.8% 15.0% -19.9% -232.7%
    52wk Range: $0.20-$4.80 Oper. margin -122.4% -232.5%
    Avg Vol (3m): 906,610 Net margin -179.6% -131.6% -26.7% -20.6% -255.1% 1138.3%
    Market Cap. 30.37M              
    Shares Outstanding 53.28M EPS, $ -5.23 -3.24 -38.0% -0.34 -0.70 105.9%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    ENER shares traded as much as 40% higher Thursday, extending gains to a second consecutive day.  ENER stock, along with the rest of the solar sector, was boosted on Wednesday as investors welcomed an upbeat report on Germany’s solar market. ENER shares also traded higher as the Company’s United Solar subsidiary announced the commercial launch of the world’s first solar-powered cover for the Amazon Kindle e-reader made by SolarFocus Technology Co.

    ENER shares have gained 67.1% in the last five days and 63.2% in the last month.  Year-to-date, the stock is down 87.9%.

    SolarFocus’ SolarKindle Lighted Cover uses UNI-SOLAR’s proprietary technology to charge the Kindle’s internal battery as well as the cover’s integrated reserve battery, which is used to power the LED reading light featured on the inside of the cover. The solar cells, located on the front of the leather cover, are charged from direct exposure to the sun, providing unlimited extended power to the device.

    The SolarKindle Lighted Cover will be revealed at the International Consumer Electronics Show (CES) this week (January 10-13, 2012) in Las Vegas, Nevada. The lightweight solar cover will be recognized as a 2012 Innovations Honoree in the Eco-Design and Sustainability Technologies category. The CES is hosted by the Consumer Electronics Association (CEA) and showcases the ground-breaking products and technologies influencing consumer technology.

    Chris Bala, vice president of sales for Open Solar, commented that the SolarKindle Lighted Cover is a great example of the success of United Solar’s Open Solar initiative, which allows SolarFocus, a strategic partner, to leverage the differentiation of the company’s unique high-performance, lightweight and flexible solar cells,”

    “This innovative product represents just how easily UNI-SOLAR technology can be integrated seamlessly and cost effectively into everyday applications.”

    ENER shares gained 33.2% to close at $0.57, with over 9.19 million shares exchanged. Thursday’s trading volume was nearly five times the 10-day average. The stock is currently above its 50-day moving average of $0.30 and below its 200-day moving average of $0.62.

    Source: http://investor.shareholder.com/ovonics/releasedetail.cfm?ReleaseID=638897

    Financial Summary

    ENER reported total consolidated revenue from continuing operations of $22.0 million in first quarter of fiscal year 2012, ended September 30, 2011.  That compares to $65.3 million in the first quarter of fiscal year 2011, and $70.5 million in the fourth quarter of fiscal year 2011.

    For the quarter, the Company generated a net loss from continuing operations of $57.5 million, which includes a non-cash impairment charge of $34.3 million. This result compares to a net loss of $15.4 million in the year ago period and $42.8 million in the prior quarter.

    As of September 30, 2011, ENER held $130.2 million in cash, cash equivalents, restricted cash and short-term investments. This represents a decrease of $10.5 million from June 30, 2011.

    Source: http://investor.shareholder.com/ovonics/releasedetail.cfm?ReleaseID=623708

    Financial Strength (12-Jan-2012)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 2.82 1.19 0.85 0.75
    Current Ratio (MRQ) 4.03 1.70 1.13 1.11
    LT Debt to Equity (MRQ) 165.13 16.02 109.30
    Total Debt to Equity (MRQ) 174.35 20.79 148.50
    Interest Coverage (TTM) -15.91 1.93 4.49 26.12

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    ENER is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for ENER currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day 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
    Jan12-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Atmel Corp. ATML 8.90 4.15B 12.36 13.69 2.27 2.28
    Ascent Solar Technologies Inc. ASTI 0.56 23.37M n/a n/a 5.31 1.87
    Broadcom Corp. BRCM 31.06 17.61B 10.98 11.29 2.39 2.28
    China Sunergy Co. Ltd. CSUND 1.57 23.46M n/a n/a 0.04 0.05
    Applied Materials Inc. AMAT 11.71 15.41B 15.61 10.27 1.75 1.60
    Semiconductor – Specialized Median       12.63 n/a 1.47 n/a
    Energy Conversion Devices Inc. ENER 0.43 29.20M n/a n/a 0.15 0.11

    Source: Thomson Financial

    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 *